The Reality about Retirement: Is It Worse Than We Think?

​A National Institute on Retirement Security (NIRS) report, reveals a concerning reality about retirement preparedness in the United States.​

Key Findings from the NIRS Report

• Widespread Lack of Retirement Savings: Approximately 45% of working-age households (ages 25–64) have no retirement account assets, such as a 401(k) or IRA. ​
  

• Minimal Savings Among Near-Retirees: Among households nearing retirement (ages 55–64), the median retirement account balance is only $12,000. ​
  

• Significant Retirement Savings Deficit: The total retirement savings gap for U.S. households is estimated between $6.8 and $14 trillion, depending on the financial measure used. 
  

These statistics highlight a pressing issue: many Americans are unprepared for retirement, risking financial insecurity in their later years.

The Broader Implications

The shift from defined benefit pensions to defined contribution plans, like 401(k)s, places the responsibility of retirement savings on individuals. However, factors such as income disparities, lack of access to employer-sponsored plans, and insufficient financial literacy contribute to inadequate savings. This situation may lead to increased reliance on Social Security and potential poverty among the elderly.​

A Path Forward

Addressing this crisis requires innovative solutions that can enhance retirement security. TimeTrust offers a promising approach by aiming to recover the inefficiencies in traditional retirement products. By potentially doubling retirement payouts through the recovery of funds typically lost due to structural inefficiencies, TimeTrust seeks to provide a more secure financial future for retirees.​

For more detailed information on the NIRS report, you can access it here: