Wednesday, August 20, 2014

Study on Retirement Savings (Or Lack Thereof)

Money

An important aspect of the job for most employees is the retirement package offered by our employers. As many of us know, most corporations are moving away from a traditional pension-based system to the more common employee-savings based approach. Thus, many companies are focusing more on the 401(k)-type approaches when promoting retirement plans to employees.

A startling new report demonstrates that this type of system can have substantial drawbacks. In particular, many employees are simply not saving enough for retirement. In fact, a recent report showed that over a third of those surveyed had no retirement savings at all. From the report at CNBC.com (conducted by Bankrate.com):

“A third of people (36 percent) in the U.S. have nothing saved for retirement... 14 percent of people ages 65 and older have no retirement savings; 26 percent of those 50 to 64; 33 percent, 30 to 49; and 69 percent,18 to 29, according to the survey of 1,003 adults.”

These numbers are disturbing and demonstrate the concerns of moving away from the more traditional-type retirement models. Nonetheless, the current system is likely here to stay for awhile, and will begin to have a dramatic impact as the population continues to age.  Retirement preparation is a critical -- but often forgotten -- aspect of current employment.

-- Joe Seiner

http://lawprofessors.typepad.com/laborprof_blog/2014/08/study-on-retirement-savings-or-lack-thereof.html

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