The news isn't rosy for retirees: Nearly half of Americans have no retirement savings, and the median 401(k) balance is under $10,000 for those who have saved, said Steve Wendel, head of behavioral science for Morningstar, in his paper Easing the Retirement Crisis: How Financial Planning and Personalized Advice Can Head Off Extreme Austerity. Further, a recent study from the Employee Benefit Research Institute found that only 17% of American workers felt very confident in their ability to retire comfortably.

Wendel met with reporters during the 2018 Morningstar conference in Chicago, where he pointed out that less than half of American households are on track for retirement, and that drops to less than a third in bad markets.

But today's headlines can lead to extreme and disheartening outcomes, Wendel said, adding that some have suggested that to meet their retirement needs, workers would now need to put away 40% of their income or delay retirement by 10 years. Neither of these ideas are realistic, he said.