A new analysis from Aon Hewitt reveals most workers will likely be working longer to save enough to maintain their standard of living in retirement.
In fact, its analysis of 77 large U.S. employers, representing 2.1 million employees, projects the average worker will need to save 11 times their final pay at retirement (age 65) to keep their preretirement lifestyle. (Exact income replacement, of course, depends on the unique situation of each worker including age, income, anticipated retirement age and Social Security.)
Only one-in-five are on track to meet or exceed their needs in retirement at age 65. An additional 20 percent may be close to having reasonably adequate savings with some lifestyle adjustments. This leaves 60 percent of workers unable to afford to retire at age 65. Aon Hewitt projects that age 68 is the median age U.S. workers will be able to retire with sound financial security, while 16 percent are not expected to have enough to retire even by age 75.