The Retirement Crisis
If you are an employer, why offer a plan for your company?
If an employee, why consider enrolling in a plan?
There is a retirement crisis in the United States today. The “three legs of the retirement stool” private pensions, personal savings and Social Security are much different than they were in the past.
Consider this, in 1990 Social Security replaced 43.2% of pre-retirement income of the average worker. That is expected to fall to 3.7% by 2030. (USA Today 7/19/2002)
Personal savings have recently been restated as 0.0%. Therefore, most personal savings accounts will be woefully inadequate.
As an example:
Most experts feel that, for a comfortable retirement, one needs to have a structure that provides 80% of pre-retirement income. Another measure is one’s savings should be ten times final salary (e.g., if annual salary is $40,000, one should have $400,000 saved.)
Private Pensions – The most common is the 401(k) plan. However, many employees neglect to enroll, or if they do enroll, save an inadequate amount.
This is the problem with retirement – inadequate personal savings, Social Security benefits dropping as a percentage of pre-retirement income, and employer sponsored pensions being shunned.
Here is a retirement calculator.
Calculate for yourself where you are today.
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