Four years from now, the median account balance of a defined contribution plan will reach $150,000, up from $100,000 today – a decent-sized nest egg by most standards, but a far cry from the $1 million or more experts say is needed to sustain a retiree’s lifestyle and health care costs. Thus, one-third of those “retiring” will continue to work and a majority of senior workers will be saving a portion of their earnings for “true old age,” when they actually stop working.
These are some of the key findings from a study by retirement plan administrator Diversified Investment Advisors, “Prescience 2015: Expert Opinions on the Future of Retirement Plans” – a 181-question survey of 68 retirement experts from 54 plan sponsors and plan administrators with $25 million to $1 billion in assets each.
