These days, retirement isn’t about setting up a rocking
chair on the porch. Today’s retirees are living longer
and leading more active lifestyles than ever. And when the
latest crop of baby boomers retires, they’ll live even
longer. Living longer, of course, means they’ll need
more retirement income.
No matter what your age, it’s never too early to start
stashing away money towards your retirement. In fact, the
earlier you start, the more comfortable your retirement lifestyle
will be. Unfortunately, too many Americans are letting near-term
expenses and necessities stand in their way.
According to a recent survey by the Consumer Federation of
America (CFA), 50% of American households have less than $1,000
in net financial assets. If you think that’s scary, consider
these statistics published by the U.S. Senate Subcommittee
report on Aging in America:
Among Americans 65 years or older:
- 22% must continue working.
- 28% rely solely on Welfare and Social Security.
- 45% are dependent on their relatives.
- 4% can meet their own expenses.
- 1% have resources that exceed their living expenses.
The following are some of the more prevalent savings and
investment plans specifically designed for accumulating money
for retirement.
You concentrate on work, and your employer provides for your
retirement. Unfortunately, these age-old pension plans are
rapidly falling out of favor.
Probably the best way to save for retirement, most defined
contribution plans feature free money donated by your employer,
called “matching.”
IRAs offer a lot of flexibility; they just don’t allow
you to contribute more than $2,000 a year. Even so, with most
people it’s not a matter of contributing too much; it’s
not contributing enough.
Annuities offer the ultimate in retirement investment flexibility,
but they also charge the highest fees of any retirement investment
account. Read on to see just what you get for your money.
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