According to the latest survey by Federal Reserve, about 30%
of Americans don’t have pension or failed to save for retirement. What’s
alarming is the fact that 9% are between the ages of 55 and 64, which is the
age bracket that is near to retirement age.
There are two factors why Americans failed to save for
retirement and the first one is low income. How can they save for retirement if
they don’t have enough financial resources? But those who can afford to save do
it by contributing to 401(k), 403(b) and other contribution plan through their
employers.
The second factor is the way people think about retirement
varies by age. As a matter of fact, 41% of younger individuals are thinking
about retirement whereas only 20% of individuals who are in their 60s have not
thought about saving for retirement.
The survey shows that there’s a direct relationship between the
person’s perception on retirement and age. But experts recommend to always
start early like when you are in your 20s in order to have enough time to
explore your options, create a sound strategy and increase your retirement
income.
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