It is true that Americans are not saving enough and according to a study by Transamerica Center for Retirement Studies, the average baby boomers who is starting to retire has a median of $147,000 in his or her retirement accounts. However, according to a recent survey, the Plan Sponsor Council of America found that in 2015 those who had access to a 401(k) through their employer contributed 6.8 percent of their salaries into a 401k, which is increase from 6.2 percent in 2010.
While this may sound like a small increase percentage, it represents a 10 percent increase in the amount flowing into 401k plans including solo 401k plans over just a 5 year period, which translates to billions of dollars. According to the Investment Company Institute, almost $7 trillion is already invested in 401k plans including solo 401k plans.
Experts recommend saving from 10 percent to 15 percent of your salary over your career. We have seen an increase in annual contributions by our solo 401k clients . The reason for this we have found is that they can contribute throughout the year or wait up until their business tax return due date to make the full contribution.