Would you be shocked to know that more than a third of Americans are retiring with next to nothing in their savings accounts? Research indicates that people aren’t even thinking about their life savings. Over 35 percent of survey responses indicated that they have less than $1,000 saved in the bank. That includes personal savings and investments. 60 percent of people reported less than $25,000. This is nowhere near enough to be comfortable after retirement. Only 1 in 2 people actually calculated how much they would need to retire on to live a comfortable life, how they are used to living.
Retirement experts agree that workers need to save at least 10 times the salary they earn in their last year of work in order to retire with enough money to be comfortable. The truth is that more than half of people expect to or will have to continue to work after retirement age. There is a trend in companies to offer an unsure and high fee IRA (Individual Retirement investment Account). Today, if a company even offers any form of retirement plans to workers, they tend to be in the form of an IRA.
Often called a 401K, an IRA does not require companies to contribute anything at all to their employee’s retirement plan. Let’s say that again because it is so important. Companies are not required to contribute anything to a worker’s retirement when they have an IRA. What companies would rather do is set aside part of the worker’s salary. Sometimes an employer will match the payments of a retirement plan, but they do not have to. We are facing a difficult situation with people so far in debt they can not recover, and nothing saved for emergency or retirement.
What can you do to protect yourself? Work with an expert to grow your savings and investments. Explore retirement options with your employer. Focus on debt reduction before it gets out of control. Educate yourself on why it is important to secure your future.
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