Inadequate savings by younger workers

Inadequate savings by younger workers

Inadequate savings by younger workers

The majority of younger workers is saving an inadequate amount for retirement and could find their selves needing products from title pawn Atlanta. Several studies point out the magnitude of the problem. One study of the baby boom generation (those born between 1946 and 1964) by Merrill Lynch showed that the baby boomers most nearly triple their rate of save the prospect of delaying retirement , accepting a lower standard of living after retirement, or foregoing retirement altogether. Another study sponsored by the Oppenheimer Management Corporation showed that, as things now stand, most Americans will have only one third to one half of the annual income needed to retire comfortably. Finally, a study by the Public Agenda Foundation, a nonprofit organization, concluded that almost nothing for retirement.

Thus, the various studies show that undeserving for retirement is a serious problem.

Barriers to saving for retirement

The Public Agenda Foundation also identified several important barriers to saving for retirement. They are summarized as follows:

-Retirement is not a high-priority goal for most people. Most people are overwhelmed by work, by payment of bills, and by health-care costs. Thirty-six percent stated they never think or seldom think about retirement planning.

-Many workers do not earn enough to save for retirement. About one third believe they cannot save more for retirement because they lack the money to do so.

-Many Americans lack knowledge about retirement planning. Seven in ten Americans did not know how much money they would need for retirement. Thirty-seven percent substantially underestimated the amount of money needed for retirement.

-Many Americans resist cutting back to save for retirement. Some Americans struggle to make ends meet and have great difficulty savings for retirement. However, many middle-class Americans strongly resist cutting back on luxuries or non-essentials to save for retirement. About two thirds of the respondents (68 percent) indicated they could save more for retirement by eating out less often, but only 18 percent of this group stated they are likely to do so.

-The public takes a conservative approach to retirement. Many persons invest too conservatively for retirement and are frightened by the stock market and its volatility.

-Personality is also important in retirement planning. The report identified four types of personalities:

  • Planners (about 21 percent of Americans) are in control of their financial affairs.
  • Struggles (about 25 percent of Americans) have a great difficulty in making ends meet.
  • Deniers (about 19 percent of Americans) typically refuse to deal with retirement.
  • Impulsive (about 15 percent of Americans) seek immediate gratification by spending today and forgetting about retirement could end up in need of title pawn Atlanta.

 

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