Long-term savings in a 401(k), combined with Social Security, will be enough to replace at least 60 percent of most workers' pre-retirement pay in retirement, according to a report by the Employee Benefit Research Institute.
Assuming that current Social Security benefits are not reduced, EBRI found that between 83 and 86 percent of workers with more than 30 years of eligibility in a voluntary enrollment 401(k) plan should have enough to replace at least 60 percent of the wages they were making at age 64, on an inflation-adjusted basis.
If the threshold for a financially successful retirement is set at 70 percent replacement of age 64 income, 73 to 76 percent of these workers will meet it and at 80 percent, 67 percent of the lowest income workers will still meet the threshold, EBRI found.
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