EBRI defines adequate retirement income as having enough money to fund basic expenses in retirement. Based on this definition, approximately 44% of boomers and Gen Xers are at risk of running out of money. Clearly, we have a retirement income crisis on our hands. One of the main drivers of this crisis is low deferral rates in 401(k) plans. The average starting deferral rate has hovered at 3% for years — while experts recommend at least 10%. Deferral rates need to be higher because a participant's savings rate determines their real retirement age — that’s the bottom line.