 Your retirement savings vs. the average
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 Dear
Dr. Don,
I am 53 years old. My annual income is $50,000. My retirement savings
and investments equal $225,000 and I have an additional $20,000
in an emergency fund. I have no debts. I would like to know how
I'm doing compared to others.
-- James Juncture
 Dear
James,
You're an above average guy. That said, what
does it matter how others are doing? What matters is whether you're
on track to meet your life goals, and if you're not, how you can
get on track to reach those goals.
The Bureau of Labor Statistics (BLS) has a report
posted on its Web site, "Comparing the Retirement Savings of
the Baby Boomers and Other Cohorts," written by Sharon A. DeVaney
and Sophia T. Chiremba that will help you keep score. Here is one
of their reported results:
There was at least one retirement account in 57 percent
of the households. The average or mean amount in the retirement
accounts was $49,944, but the standard deviation was $174,193, suggesting
that the dollar amount held in retirement accounts varies widely
by individual households. The median amount held in retirement accounts
-- $2,000 -- provides another indication of the wide variation in
the amounts held by households.
If your retirement money is in a tax deferred 401(k),
403(b) or traditional IRA account, keep in mind that distributions
out of the account are going to be taxed as ordinary income. The
government is getting a slice of that money.
The average household income in this sample was $72,673.51
and the median amount $44,000. The sample represented nonretired
households with the heads of household age 70 or younger in the
2001 Survey of Consumer Finances.
If you want to find out if you're on track for
retirement, talk to a fee-based financial planner about your retirement
goals and sources of retirement income. An earlier Dr. Don column,
"Picking
a financial adviser," can help you find a planner.
To ask a question of Dr. Don, go to the "Ask
the Experts" page, and select one of these topics: "Financing
a home," "Saving & investing" or "Money."
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