In an interesting article about the increasing number of workers who are withdrawing funds from their 401(k) plans, the Post told readers that "401(k) plans are replacing employer-sponsored pension plans and Social Security as the main source of retirement savings for many Americans." No, that actually is not true.
The median wealth for late baby boomers (workers age 45 to 54) is around $170,000, with most of this being equity in their home. Even for workers in the second wealthiest quintile the median wealth is only $250,000, with roughly half being home equity. This means total non-housing wealth (including personal savings and family businesses, in addition to 401(k)s) will be around $125,000 for this group. By comparison, these households can expect around $20,000 a year in retirement from Social Security.
Two-thirds of retirees receive the majority of their income from Social Security. The share of the population that will receive more of their income from a 401(k) plan than Social Security is relatively small.
A second Trump administration will cement a right-wing majority on the Supreme Court for a generation, and put our collective future in the hands of someone who will be virtually unchecked by our institutions. The country has shifted rightward, and the reverberations will ensue for potentially the next few decades. In this climate, a robust independent media ecosystem will be more important than ever. We're committed to bringing you the latest news on how Trump's agenda will actually affect the American people, shining a light on the stories corporate media overlooks and keeping the public informed about how power really works in this country.
Quality journalism is expensive to produce, and we don't have corporate backers to rely on to fund what we do. Everything we do is thanks to our incredible community of readers, who chip in a few dollars at a time to make our work possible. Any amount you give today will help us continue reporting on what matters to our democracy.