Missing This Could Cost You $625,000 in Retirement, Says BlackRock

Core Insights - A significant gap in retirement savings exists between workers with employer-sponsored retirement plans and those without, with median-income employees lacking such benefits saving only one-eighth as much as their counterparts [2][4] - The study indicates that by retirement age, workers without employer retirement programs could have nearly $625,000 less saved compared to those with access to these plans [2][4] Impact of Retirement Plan Access - Research shows that U.S. workers earning a median annual income of $60,000 contribute an average of 7.4% of their salaries to employer-based retirement plans, while those without such benefits save only 0.9% annually [3][4] - This disparity results in a projected average retirement fund of $710,900 for those with employer plans at age 65, compared to just $86,500 for those without [4] Importance of Savings Tools - The lack of access to workplace retirement plans leads to insufficient savings, making it challenging for workers to accumulate adequate retirement funds [7] - Financial shortfalls for those without employer-sponsored plans can result in inadequate income and a diminished quality of life in retirement [8]