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The amount of Americans not saving for retirement is even worse than you thought

MARKETWATCH 1:14 PM ET 2/21/2017

Only a third of Americans save in a 401(k) plan

There's no easy way to say this: Americans are not saving for their futures.

The numbers for retirement savings already looked discouraging with the average American couple only having put away $ 5,000 (http://www.marketwatch.com/story/the-typical-american-couple-has-only-5000-saved-for-retirement-2016-04-28), but the situation may be worse: only a third of working Americans are saving money in an employer-sponsored or tax-deferred retirement account, according to U.S. Census Bureau researchers, as reported in Bloomberg (https://www.bloomberg.com/ news/articles/2017-02-21/two-thirds-of-americans-aren-t-putting-money-in-their-401-k). And that's only if their employers even offer such plans, which, according to this research, only 14% do (and they're likely large companies).

See:Here is how much you need to save for retirement (http://www.marketwatch.com/story/here-is-how-much-you-need-to- save-for-retirement-2017-02-18)

Saving for the future has always been a problem for Americans, but it's beginning to catch up with them now as life expectancy increases (http://www.marketwatch.com/story/when-making-retirement-choices-prepare-to-live-longer-2016-01- 14), and savings may have to last a lot longer. The consequences of not saving appropriately could be detrimental: women 65 and older, for example, are working more now than they did 20 years ago, mostly because they can't afford not to do so (http://www.marketwatch.com/story/the-real-life-golden-girls-scenario-over-65-and-working-2016-09-16).

Many experts urge millennials to take note and begin saving as soon as possible, though many have trouble putting money away for such a distant goal (http://www.marketwatch.com/story/this-is-why-most-people-dont-save-money-for- retirement-2016-10-05) and struggle to envision themselves as retirees. Younger workers may also question how to balance their paychecks: saving for retirement is important, but some place higher importance on saving for a home or another financial goal, said John Scott, director of the Retirement Savings Project (http://www.pewtrusts.org/en/projects/ retirement-savings), part of Pew Charitable Trusts, a Philadelphia-based nonprofit non-governmental public policy organization.

Don't miss: How to retire early: a 5-step plan (http://www.marketwatch.com/story/how-to-retire-early-2016-07-19)

The financial services industry and government are battling over how to fix this crisis. Some financial firms, organizations and the former Department of Labor staff under President Obama have fought for greater transparency and lower fees for retirement portfolios with the fiduciary rule (http://www.marketwatch.com/story/the-fiduciary-rule-is- coming-heres-how-investors-can-prepare-2017-01-30), a law that was supposed to come in April and protect retirement savers from conflicts of interest that cut their future assets.

But critics, which include other large financial firms and financial organizations, argue it restricts products available to investors, and President Trump signed an executive order (http://www.marketwatch.com/story/after-trumps- fiduciary-order-theres-concern-and-some-optimism-2017-02-08) earlier this month delaying it until the new Department of Labor staff could further review it.

-Alessandra Malito; 415-439-6400; [e-mail]

RELATED: How couples are sabotaging their retirement (http://www.marketwatch.com/story/how-couples-are-sabotaging- their-retirement-2016-11-18)

RELATED: This savings account could power your retirement (http://www.marketwatch.com/story/a-health-savings-account- could-power-your-retirement-2017-01-13)

RELATED: Congress threatens state auto-IRA initiatives (http://www.marketwatch.com/story/congress-threatens-state- auto-ira-initiatives-2017-02-17)


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02-21-171314ET
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