Another Voice in the Retirement Warnings Wilderness
While there’s no shortage of studies and warnings about our lack of retirement preparedness, now there’s another. As reported in the Wall Street Journal on 6/6, new analysis from the Center for Retirement Research at Boston College indicates that nearly half of all working-age families may not be able to maintain their current standard of living in retirement. The Center pointed to something of a perfect storm: Longer life spans, the disappearance of traditional pensions, and insufficient savings.
Matt’s View:
The Center noted that workers born between 1965 and 1972, so-called “Gen Xers,” are doing the least to prepare. While it may be tough to find money to put toward retirement during a life stage that often includes children at home, younger workers have the best opportunity to take full advantage of the power of compound interest. The key is to start saving now.
Does your employer offer a 401(k) plan? Call your benefits department today to find out when you can join or increase your contributions. If a 401(k) isn’t an option, open or add to an IRA. Information about requirements, contribution levels and more can be found on brokerage house web sites such as Fidelity , Vanguard , Charles Schwab and others. Are you self-employed? SmartMoney provides a great summary of the options .
This article filed in: Retirement , Saving
Managing Money by The Book
- "Be joyful in hope, patient in affliction, faithful in prayer." - Romans 12:12
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