No. of Recommendations: 2
On average, employees are contributing about 8 percent of their pay to retirement accounts. That compares with the 16 percent that Aon recommends workers put away in order to retire comfortably by the age of 67.

Given the rules governing compensation and participation rates in employer tax-deferred retirement plans, AON's findings are right on the mark. In the 31 years that I participated in my employer's 401(k) plan, I was never allowed to contribute more than 8% of my pay.

I did get close to AON's recommendation of saving 16% of pay when I included my employers' matching contribution to the 401(k) plan and their contributions to my pension plan.

The Trump administration and conservative lawmakers have sought to help Americans save more for retirement, including an increase of the contribution limits for individual retirement accounts (IRAs)

Without changing the rules governing compensation and participation rates, Congress could raise the contribution limit to $100,000 and it wouldn't have any impact on the retirement savings rate.
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