I recently noted that 43% of Americans won’t have enough saved for retirement.
GRS-reader Sabino forwarded an MSNBC article that suggests this number may only continue to rise.
The financial security of American workers is more uncertain than it has been in decades. Once reasonably assured of a comfortable retirement, Americans are now watching private pensions collapse and public pensions come under pressure. And even those…whose retirement security was once all but guaranteed, are now finding they have to fend for themselves.
Because of uncertainty regarding government and corporate pensions, it’s imperative that people pursue personal retirement savings programs. Pay yourself first. But the article warns that even those few who take the initiative to make personal retirement investments face risks.
There is mounting research that most Americans are ill-prepared to cope with the task of creating a nest egg to rely on when they’re too old to continue working. They’re also woefully unaware of the risks they face in retirement investing. And they’re falling further behind in providing for their long-term financial security.
Individual investors are generally ill-informed regarding investment options. Many don’t do anything. Some invest in their employers’ stock. Others make uneducated forays into the stock market. Be proactive. Educate yourself. Act now!
More worrisome is that people don’t understand how much money they’ll need when they stop working.
[A recent study] found that half of current workers expect to get by on 70 percent or less of their pre-retirement income. Yet among people who have already retired, two-thirds say the 70 percent level is inadequate.
This is an excellent article, and an important one. Please read it.
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