Working into your Retirement Years
Less than half of working Americans have
access to today’s No 1. Retirement vehicle: a 401(k) plan. Many who
have a 401(k) at work opt not to participate, and many who do contribute
often don’t save enough.
Working in the pension industry I find it a bit concerning that more and more people are not saving for their retirement and plan on working until well after the normal retirement age and possibly until they are too sick or they die.
The retirement years are those that we should be looking forward to. I don’t know about you, but I know that I don’t intend to work until I die or until I am 80! I plan on retiring at my normal retirement age and enjoying the no work years. I don’t need to see the world or really travel, but I look forward to taking a step back from the fast-pace of what my normal routine is now and spending time with my family, friends, and hopefully grandkids.
Some people blame the individual for the lack of saving and/or planning for their retirements, while others blame the system. Sass said for those who have access to plans, the information participants and plan sponsors receive is still too technical and overwhelming for many. It may be that because many workers are ill-equipped to make investment decisions that people who aren’t automatically enrolled into plans don’t participate.
I was raised with the belief that you are supposed to save more money than you spend because you never know when you may need it. I have tried to teach my own kids the importance of saving money. My youngest son is actually quite good at it. He usually saves 90% of all the money he receives for his birthday or Christmas and once it has been placed into his savings account he forgets that it even exists. Hopefully, he will continue with the process as he gets into his 20s, 30s, and beyond.
Author: Rheanna Walsh