ALBANY, GA (WALB) - Consumer prices seem to be ever-climbing, but people who study finances are saying that American workers are also increasing their contributions to their retirement accounts, such as 401-K's.
AP Business Writer Stan Choe reported Thursday that Fidelity's assessment of its 14.5 million customers indicates that the average balance in a retirement account went up 5%, averaging $92,500 as 2016 ended.
Pensions are going the way of the Studebaker, and workers understand that they better have some money saved up for their later years. Social Security is still solvent, but that was never meant to fund a person's retirement, only to supplement it.
Choe said, "Only 21 percent of workers have a loan outstanding from their 401(k) accounts, the lowest level in seven years."
The average 8% of salary that people are saving by 2017 was the highest rate since 2008, when the great recession really hit hard.
About a third of workers don't have any kind of retirement plan through their employers, and lower-paid workers save less.