"Access to employer-sponsored defined contribution (DC) plans such as 401(k)s remains the single biggest factor driving financial security in later life. The report said that workers with such plans are nearly twice as likely to reach their retirement goals as those without them. Defined contribution plans play a critical role in building a stronger retirement system, the report said. If every worker had access to one, the investment management group estimated, six in 10 Americans would achieve retirement security."
"But if all workers had access to a defined contribution plan, Vanguard estimated that retirement readiness among Gen Z could nearly double, while the share of millennials on track would rise from 42% to 71%. While many younger workers carry heavy debt loads especially student loans, which could hamper long-term savings they also show promise: Nearly half of Gen Z workers are projected to be ready for retirement compared with 40% of baby boomers."
Access to employer-sponsored defined contribution (DC) plans remains the single biggest factor driving financial security in later life. Workers with DC plans are nearly twice as likely to reach retirement goals as those without them. Universal access to a DC plan would enable six in 10 Americans to achieve retirement security. Younger generations show wider workplace plan access and improved plan design, positioning them better than previous generations; universal DC access could nearly double Gen Z readiness and increase millennials on track from 42% to 71%. Many younger workers carry heavy student loan debt that could hamper long-term savings. Low- and middle-income baby boomers are expected to rely heavily on Social Security, which faces projected depletion by 2033 and potential benefit reductions around 23% without legislative action.
Read at www.housingwire.com
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