There is a seemingly endless debate about whether Americans have sufficient savings for retirement (see here and here). The answer is that many do. But tens of millions do not.
Overall retirement assets have grown enormously in recent years— to $36 trillion, despite a terrible stock market in 2022. But looking at total retirement plan savings, or even average 401(k) and IRA savings, misses a much more nuanced story: Much of the increase in these account balances is skewed to higher-income workers. As a result, while many near-retirees seem better prepared for the average costs of old age, including for health care and long-term care, tens of millions of others are not.
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