In the U.S., 67% of private industry workers receive retirement benefits from their employer, according to the Bureau of Labor Statistics, and for 52%, those benefits are defined contribution plans, such as a 401(k). But as an increasing amount of American workers are reaching retirement only to find themselves financially unprepared, employers and employees alike are craving a better solution.
According to Fidelity’s 2023 Retirement Savings Assessment, which rates retirement preparedness in the U.S., American savers have just 78% of the income they’ll need to cover their expenses during retirement, a decline from 83% in 2020. For those workers fast approaching retirement, their own lack of preparedness may come as a shock.
