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Median retirement savings omit 46% of households without 401(k)s or IRAs
Including households with zero retirement-account balances, the article argues, makes the average level of retirement preparation look far weaker than median figures suggest.
Yahoo Finance highlights that the Federal Reserve's Survey of Consumer Finances shows a median retirement-account balance of $185,000 for Americans ages 55 to 64, rising to $200,000 for ages 65 to 74, while a separate median of $115,000 applies to ages 45 to 54.
The outlet says those medians cover only households that have at least one retirement account, estimating that roughly 54% of American households hold a 401(k) or IRA, leaving about 46% excluded from the comparisons entirely.
Yahoo Finance adds that using only median account balances also provides limited context for whether people can actually retire, because retirees may rely on other income sources such as Social Security, pensions, or part-time work.
The article also notes that fewer than one in 10 households ages 55 to 64 have $1 million or more in retirement assets, arguing that the benchmarks people commonly look at can be misleading when they are based on incomplete comparisons.