Retirement readiness should be a real concern for the majority of U.S. workers, and hopefully instructive for younger workers who need to start saving much more than they are at present, says a new report from TD Economics.

The firm has issued a new study that looks at the ability of U.S. workers to provide for themselves in retirement, which concludes that there is “reason to be concerned”.

The report notes that workers nearing retirement (aged 55-65) have low retirement account balances. “For those earning less than the median income, the average balance is only US$33,321,” it says.

That rises to about US$110,000 when you include assets that can be monetized in retirement, such as life insurance, rental properties, and financial assets held outside retirement accounts, the report says.

“Nonetheless, the median near-retiree has a US$142,000 shortfall relative to the amount needed to produce an annuity equal to a 70% replacement-income in retirement, and time is running short for this group,” it says.

That means that these workers likely face some tough choices in the years ahead. “With time running short, these near-retirees will need to ramp up savings, work longer or lower their expectations on future living standards,” it says.

The report also counsels that, “Younger workers should learn from those who have gone before them. A comfortable retirement is certainly not out of reach, but does require higher and deliberate savings.”

Indeed, assuming a 5% return on assets, TD says that “the median 30-year old starting off with little assets will need to save roughly 8-9% of pre-tax income – nearly double the current national rate.”