National Retirement Security Week: Day One
BOSTON (CBS) - This is National Retirement Security Week. Its goal is to raise public awareness about the importance of saving for retirement. The program which was established in 2006 has had modest success.
They have some lofty goals for the week. I wonder if we don't need a powder keg to get folks to focus on their future. The goals for the week:
- Make employees more aware of how important it is to save for their financial future
- Promote the benefits of saving for retirement & taking advantage of employer-sponsored plans
All very good and noble ideas that sometimes fall on deaf ears. Most American workers are not saving enough to bankroll their retirement years.
According to a GAO (Government Accountability Office) study, half (52%) of households headed by those 55 and older have no retirement savings.
And half of all workers in the United States (57%) have less than $25,000 in total savings and investments, excluding their home and defined benefit plans.
With longer life expectancies and rising costs for health care, it is important that we save for our futures.
One of the things that age has taught me is that it is never too late to save more for retirement even if you are getting close to retirement age. And, of course, the younger you are the more time you have.
Younger workers think they have an eternity to save for retirement. The key years for retirement saving is between the ages of 20 and 35. Starting in your 20s gives your money 30 to 40 years to work for you.
If you want to save more for retirement, something in your budget is going to have to give so you will have the extra dollars to reach your goal of a comfortable retirement.
Review your budget: how much more can you save and where? Better still, pick a percentage such as 5 or 10% and rework your budget so savings becomes a priority.
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You can hear Dee Lee's expert financial advice on WBZ NewsRadio 1030 each weekday at 1:55 p.m. and 3:55 p.m.
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