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A growing number of workers report that their primary source of retirement income will come from their 401(k) workplace savings plan, according to a new retirement study from Schwab. In 2022, workers said 37% of their retirement money would come from 401(k) cash. In 2023, that figure has risen to 40% of workers.
"Placing such a high priority on 401(k)s is not surprising since it is their primary retirement resource, with workers counting on it to deliver 40% of their retirement income," said Marci Stewart of Schwab. "That's double what workers expect from the next closest source, which is Social Security at 20% of retirement income."
Consider working with a financial advisor as you plan your withdrawals from a tax-advantaged plan or as you create a plan for such withdrawals.
That 40% is comprised of one's own 401(k) (32%) and from one's partner's 401(k) (8%). Last year, the same study had those figures at 30% from one's own 401(k) and 7% from a partner's 401(k). Even with 40% of retirement income coming from either their own or their spouse's 401(k) account, these workers will still need to rely on a wide array of other sources to cover the bulk of their living expenses in retirement.
#workers #income #plan #study
A growing number of workers report that their primary source of retirement income will come from their 401(k) workplace savings plan, according to a new retirement study from Schwab. In 2022, workers said 37% of their retirement money would come from 401(k) cash. In 2023, that figure has risen to 40% of workers.
"Placing such a high priority on 401(k)s is not surprising since it is their primary retirement resource, with workers counting on it to deliver 40% of their retirement income," said Marci Stewart of Schwab. "That's double what workers expect from the next closest source, which is Social Security at 20% of retirement income."
Consider working with a financial advisor as you plan your withdrawals from a tax-advantaged plan or as you create a plan for such withdrawals.
That 40% is comprised of one's own 401(k) (32%) and from one's partner's 401(k) (8%). Last year, the same study had those figures at 30% from one's own 401(k) and 7% from a partner's 401(k). Even with 40% of retirement income coming from either their own or their spouse's 401(k) account, these workers will still need to rely on a wide array of other sources to cover the bulk of their living expenses in retirement.
#workers #income #plan #study
4 months ago
