(Annuity News Now) Nyhart CEO Thomas Totten--Study Reveals Average Employee Can't Retire Until 73

Nyhart (www.nyhart.com), one of the nation’s largest independent actuarial and employee benefits consulting firms, released their “Fall 2010 401(k) Retirement Readiness Study” today as part of the firm’s ongoing look at the effectiveness of the traditional 401(k) retirement benefit.

The 6-month study reviewed nearly 10,000 retirement accounts from employees at 110 public and private companies. The study evaluated how contributions to their 401(k), the primary retirement tool for most of these employees, would affect the age at which they could retire.

Key results in Fall 2010 401(k) Retirement Readiness Study include:

• 81% of employees 18 or older will not be able to afford to retire by the age of 65
• The leading cause impacting employees’ ability to retire on time is their failure to contribute enough of their income towards retirement
• Employees above the age of 55 will need to contribute more than 45% of pay through the remainder of their career to retire by age 65. Employees age 45-55 must contribute 19% of pay to retire by 65.
• The average participant, relying on their 401(k) as a primary retirement vehicle, will not be able to retire until the age of 73.
• Most employees age 60-64 will likely need to work until the age of 75 to be able to afford to retire at their current levels of contribution to their 401(k).
• 30% of employees age 24-and-under do not participate in a 401(k) benefit.
• 7 in 10 employees age 24-and-under are not expected to retire by age 65.

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Nyhart CEO Thomas Totten talks with ANN and says annuitizing assets can help to protect a retirement income stream.