Our society is facing a looming crisis – Americans are not accumulating enough savings for retirement. In a recent U.S. Federal Reserve survey, two-thirds of Americans reported that they either do not have savings for retirement (any savings) or are not confident that their retirement savings plans are on track.

A common rule of thumb for sufficient savings entering retirement is 10 times final compensation, generally requiring individuals to save about 10% to 15% (including employer matches) over their careers. Market gains can be important contributors, if invested well in long-term, diversified portfolios.

But people are often burdened by events and changes that derail their retirement savings. Some are predictable, others less so, as everyone’s journey to retirement readiness is different. While these occurrences can reduce savings, they seldom reduce retirement income needs.

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