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NEW YORK (CNN/Money) -
Americans are at risk of outliving their retirement savings, according to a new survey.
Findings from the Fidelity Retirement Index issued Tuesday show that the typical American household is on track to replace approximately 59 percent of its projected pre-retirement income.
Since the index uses the median, or midpoint value from the findings, that means an equal number of respondents will do better or worse than 59 percent.
Fidelity recommends households be prepared to replace at least 85 percent of their pre-retirement income.
That means if a household earns $100,000 annually, it should be prepared to generate at least $85,000 a year during retirement.
Younger American workers aged 25 to 40 -- the least prepared age group in the survey -- are on track to replace about 55 percent of their pre-retirement earnings, the survey found.
Workers aged 41 to 54 are the best prepared and can expect to replace about 63 percent of their pre-retirement income, and those aged 55 and older trail slightly behind and are on track to replace about 62 percent.
"The harsh reality is that many Americans are woefully unprepared for retirement. They simply aren't saving anywhere near enough -- and many are not investing their retirement savings wisely," Fidelity Brokerage Company President Ellyn A. McColgan, told an audience at the National Press Club in Washington Tuesday
Bumping up personal savings
The Fidelity survey found that the typical American household has saved $18,750 for retirement and expects to cover the majority of retirement costs through Social Security and pension benefits.
But with rising retiree medical costs and longer anticipated life spans, Americans need to bump up their personal savings if they want to be ready for retirement, Fidelity said.
Some 16 percent of working Americans haven't even started saving for retirement, the survey found.
For those who have started saving, younger adults aged 25 to 40 typically put away $92 a month for retirement and have saved $9,000, while adults between the ages of 41 and 54 have saved more than $30,000. Their monthly contributions are double that of their younger counterparts at $187, according to the index.
Pre-retirees aged 55 and older typically have $60,000 in retirement savings and contribute $229 each month to that goal, according to the results of the survey.
McColgan also said companies need to play a larger role in demystifying the retirement planning process and encouraged retirement plan sponsors to provide education and guidance as well as automate enrollment process so workers can fully participate in company-sponsored plans.
More than 1,900 households with full-time workers above the age of 25 earning $20,000 or more a year were interviewed for the survey.
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