Sep 14, 2019

Even baby boomers are way behind on retirement savings

A survey from Clever Real Estate finds that even baby boomers who are nearing retirement have only saved about 30% of the recommended amount, and the average boomer is about $320,000 shy of the income level financial advisers like Fidelity recommend, based on their average salary.

Reproduced from Clever; Chart: Axios Visuals

Why it matters: Public pension funds are underfunded by trillions of dollars, which is a problem for the states that have guaranteed them, but data shows most Americans have badly underinvested in their own retirement funds as well.

  • "Fidelity's rule of thumb: Aim to save at least 1x your salary by 30, 3x by 40, 6x by 50, 8x by 60, and 10x by 67."

Worse, data shows many boomers don't have any emergency savings. The study finds:

  • 40% of baby boomers are still paying off credit card debt. 
  • 59% of baby boomers believe Social Security will be a major source of income in retirement.
  • Baby boomers in the study planned to retire by 68, but generally lack the savings to realistically do so.

Go deeper

Americans are saving at an unusually high level after Trump's tax cuts

People shopping. Photo: Spencer Platt/Getty Images

Americans have been socking away an unusually high rate of their income since the Great Recession, which economists warn could become harmful to the economy over an extended period of time, according to the Wall Street Journal.

Why it matters: Economists think that if the saving rate surpasses investments for several years, it could hinder economic growth and make it difficult for the Federal Reserve to cut interest rates to boost growth during the next downturn.

Go deeperArrowSep 22, 2019

GE freezes pensions in latest bid to save cash

Photo: Sebastien Bozon/AFP/Getty Images

General Electric said it will freeze pension plans covering about 20,000 U.S. employees and make other moves to help cut its debt and reduce its retirement fund deficit by $5 billion to $8 billion.

What it means: A pension freeze means employees no longer build up retirement benefits to reflect higher pay and additional years of employment. Employees stop earning some or all of their benefits from the point of the freeze onward.

Go deeperArrowOct 8, 2019

Nearly 25% of people in OECD countries are obese

Empty fast food containers. Photo: Matthew Horwood/Getty Images

Almost 60% of people in OECD countries are overweight and nearly 25% are obese, according to an analysis from the intergovernmental organization.

Why it matters: Treating obesity-linked diseases in these countries costs $423 billion a year, and they will claim more than 90 million lives over the next 30 years — with life expectancies reduced by nearly 3 years.

Go deeperArrowOct 10, 2019