()Credit increased savings. This is a great way for American investors to be better financially prepared for retirement.

According to Fidelity Investments’ most recent biennial Retirement Savings Analysis, the average American household will have 83 percent of their income over the expected retirement years. About half of these households are in better financial health. When the first assessment was made, it was a grim figure of 62 percent.

“It’s a testament to the hard work many families have made in taking control of their finances,”Melissa Ridolfi (Vice President of Retirement and College Leadership at Fidelity)

This study was based upon a national survey of 3,234 people aged 25-74 who were saving for retirement. It considered assets such as retirement accounts, home equity and inheritances. The study also looked at current and expected pensions and Social Security benefits. One troubling finding is that 28 percent of respondents may as well be wearing bright red warning signs if there aren’t any significant steps taken to address their current shortfall.

Fidelity actually used colored indicators to show a more complete picture of households’ capability to cover estimated expenses in a later market.

* Dark Green (“On Target” 37% of respondents were on track for handling more than 95% of their freight, an increase of 5 percentage points over 2018.

* Green (“Good” Seventeen percent were on target for 81 to 95% – the essentials, not discretionary items such as travel or entertainment (down 1 point from 2018).

* Yellow (“Fair” The 18% came in at 65-80 percent and thus face “modest adjustments”Their lifestyles (down 3 percent points from 2018).

* Red (“Needs Attention” Twenty-eight per cent were completely off track at less than 65 per cent of expenses (down 1 point from 2018).

What are the two driving factors for the green shift?

The median savings rate has increased steadily over the years to 10 percent. It was 8.8 percent in 2012, and now it is at 10.0%. Baby Boomers are the ones who have the highest saving rates (11.7 percent) of their salary. Even Millennials, a generation known for their student loan debt and crushing rates of default, managed a rate 9.7 percent.

The second is a better asset allocation. This is something that’s often forgotten. “Sixty percent of respondents are allocating their assets in a manner Fidelity considers age-appropriate,” Ridolfi said, “compared to 48 percent in 2006.”

One reason could be that many workplace retirement programs started to default employees into managed accounts and target date funds over the past ten years.”

For those curious about their own retirement readiness, Fidelity’s free Retirement Score tool allows anyone to get their score and shows the percentage they’re anticipated to have saved versus their projected needed income. Better yet, you can also test out potential tweaks that would allow for a cushier retirement lifestyle.

And if cushy is what you crave, never, ever forget three of the greatest “Additives” for improving your preparedness. Specifically, by upping your savings rate to the recommended minimum 15 percent (including any employer 401(k) contributions), ensuring an age-appropriate asset mix, and deferring Social Security benefits till at least age 66 or 67, you could dramatically boost your total score to more than 100.

“Every accelerator is cleary helpful.” said Ridolfi, “However, all three can help you to go from a ‘good to great’ position.