Overview
- This week data and analyses from Fidelity, Vanguard and the Bureau of Labor Statistics show the U.S. personal saving rate fell from 6.2% to 3.9% between Q1 2024 and Q1 2026, leaving households with less buffer for retirement.
- The average worker now defers about $4,945 a year into a 401(k), far below the 2026 IRS limit of $24,500, which creates a persistent shortfall in long‑term retirement wealth.
- Skipping a common 3% dollar‑for‑dollar employer match costs the median worker roughly $1,926 a year and can compound to about $266,000 over 35 years if not captured early.
- Fidelity’s data show the average 70‑plus workplace account holds about $250,000, producing a first required minimum distribution near $9,434 at age 73 that can raise taxes and Medicare surcharges unless retirees use Roth conversions or qualified charitable distributions.
- The Social Security Administration projects combined OASI and DI trust funds could be depleted by 2034 with scheduled benefits falling to about 83% without congressional action, a risk compounded by many workers’ plans to claim benefits before age 70 and by rising housing and health‑care costs that already leave typical retirees spending more than their median income.