Employees can’t save enough for retirement on their own, and workplace plans are becoming a critical vehicle for getting them anywhere close to the financial finish line.
Only 42% of Americans are currently on track to achieve retirement security, according to the newly released Vanguard Retirement Outlook, but workers with access to a defined contribution plan plan are twice as likely to reach their retirement savings goals compared to those without. Expanding plan access to all workers could increase overall retirement readiness by 19 percentage points, and extending the average working age by two years — to 67 — could add another 13 points.
