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Benefits March 7, 2012
Fewer U.S. Workers Making IRA Contributions
March 7, 2012 (PLANSPONSOR.com) - The percentage of U.S. workers who make annual IRA contributions has dropped to a record low 15%, according to a new survey commissioned by Greene IRA.
Reported by Tara Cantore
The IRA study shows the percentage of working Americans owning an IRA has dropped to only 38%. This marks the fourth straight drop since the beginning of the 2008 economic crisis. Back then, nearly 42% of Americans owned some form of Individual Retirement Account.
The survey shows that even those who own IRAs aren’t necessarily making contributions. Twenty-four percent of working Americans own an IRA, but won’t make a contribution for the 2011 tax year.
For the 2011 tax year, only 9% of U.S. workers are expected to make the maximum contribution to their IRA as allowed by law. For most U.S. workers, this tops out at around $5,000.
The study also shows an increasing gap between what Americans have saved through retirement accounts and what they actually need for retirement. This shortfall is forcing older Americans to extend their working years. Twenty-six percent of workers said they have postponed their planned retirement age in the past year, up from 18% in 2010.
The news isn’t all negative; U.S. workers who did own IRAs and made a contribution in the past year had average IRA assets of over $148,000.
The full study is available at http://iracontributionlimits2010.com/americans-decreasing-investment-in-iras-new-study/2012/03/.