Last quarter saw another all-time high in retirement-created millionaires, Fidelity Investments said Wednesday.
And IRA -created millionaires increased to 398,594, up 6% from the previous quarter. Fidelity ’s metrics come from an analysis of 24 million 401 participants.Chief Financial Analyst Greg McBride said. “At a 4% withdrawal rate, which even that might be on the aggressive side, you know a $1 million nest egg produces $40,000 a year in income. That's pretax.”“That is the most common regret, but it looms largest for Gen Xers and baby boomers,” McBride said.
“And lifespans are getting longer, so the nest egg has to be bigger in order to last a longer period of time,” McBride said. And the Department of Labor said last fall that more than a quarter of private industry workers with access to a defined contribution plan, such as a 401,And then there are the concerns over the future of Social Security.
“That doesn't mean there's no money for retirees. But it does mean retirees can only get paid based on what's currently coming in, which is the equivalent of a 23% across-the-board cut,” Marc Goldwein, senior policy director for the nonpartisan and nonprofit Committee for a Responsible Federal Budget,Fidelity on Wednesday said the average 401 savings rate last quarter was 14.2%, which it said was very close to its suggested retirement savings rate of 15%.
Fidelity Millionaires 401(K) Savings Mcbride IRA Income
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