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26 September 2011
The need for retirement planning continues to expand at a rapid pace in today’s environment. The days are over when an individual or couple can retire living only on a company’s monthly pension and social security. According to new research by Nyhart, Inc., a national actuary and employee benefits consultant, the average American employee will not be able to retire until the age of 73. This research also shows that 81% of adults will not be able to retire by the traditional age of age 65.
The findings suggest that this is not a function of market performance or asset allocation, but a factor employees can actually control; contribution levels. According to the study, employees’ contributions fall far too short to ensure retirement readiness. In addition, employees need to understand the importance of starting these contributions early. Contributions in the early stages of an employee’s career benefit significantly from compounding interest. Playing catch-up with retirement contributions after age 50 can be challenging, resulting in lower retirement balances and potentially extending the number of years you’ll have to work – full-time or part-time.
It’s human nature to put off dealing with big life decisions. We all do. The best time to save for retirement was 20 years ago. The second best time is today!
"P R E P A R E T O R E A C H Y O U R G O A L S"
