The advent of 401(k)s and the decline of the old-school pension have long since shifted the responsibility for retirement savings from employer to employee — a change that has contributed to a growing crisis in retirement readiness.
Some experts now say the issue is not just a problem for individual workers, but also for their employers.
A recent report from the National Institute on Retirement Security found that nearly half of Americans do not participate in an employer-sponsored retirement plan. The analysis also shows the median 401(k) balance for contributors is just under $40,000, and the average worker has saved only about 18% of what is recommended for their age.
Connecticut-based retirement adviser Michael Del Re said people routinely spend far more time comparison-shopping for car leases or vacation deals than they do researching their retirement plan options.
“You’ll ask them how much time did you spend online last year planning for retirement?” he said. “And immediately everyone’s head goes down because the dog just ate their homework.”
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