Despite a deluge of warnings many Americans are still woefully unprepared to leave the workforce. A little more than a third don't have a savings strategy.
Half of households are not putting away enough to maintain their current lifestyle after retirement, according to the latest National Retirement Risk Index.
Deep down, we know we should be putting something in our 401(k)s, but the benefits are just so far out there, that it's not real to people."
People are living longer, so they need more. Rates of returns have fallen, so they need a bigger pile." The rise of self-directed plans such as 401(k)s, and worries about the future of Social Security, have also put more of the burden of saving on the consumer.
Cutting back gives you more room to save now, and can mean you'll need
less income in retirement. Strategies might be big, such as downsizing
to a smaller house, switching vehicles or
right-sizing a smartphone plan. Just a thought.
No comments:
Post a Comment