How Much Should Americans Be Saving for Retirement?

Deciding if HRS households are saving too much or too little cannot be determined from the data alone. However, by applying the ESPlanner to the data, the rate at which American households should be saving as they approach retirement can be determined. Households that are currently saving under the assumption that Social Security benefits will be paid in full are saving far too little. For all households besides the poorest ones in the sample, median recommended saving rates are fairly high because of the risk of major cuts in Social Security benefits.