According to a new assessment by Fidelity Investments, more than half of American households would fall short of what it takes to cover their basic expenses in retirement.
Fidelity Investments released its 2023 Retirement Savings Assessment (pdf) on Tuesday, in which the firm surveyed more than 3,500 people, finding just 48 percent of U.S. households expect that they will be able to cover at least their essential expenses in retirement. The overall number of U.S. households likely to be able to meet their retirement expenses has fallen by six percent since 2020.
According to the Fidelity Investments survey, 32 percent of U.S. households believe they are “on target” to cover all basic retirement expenses and discretionary costs. The firm rated another 16 percent of households as “good,” indicating they could likely cover basic expenses but few discretionary ones. Fidelity Investments rated 18 percent of households as “fair,” meaning “modest adjustments to retirement lifestyle” are likely needed. Thirty-four percent of households were labeled as “needs attention,” meaning “significant adjustments to retirement lifestyle” will likely be required….