If you don’t read any other retirement articles this month, you at least need to read this. According to a GOBankingRates survey, nearly 40% of Americans do not know what a 401(k) is. We’ve all seen the reports showing that a majority of Americans cannot pass a basic financial literacy test, but this new survey seems further suggest the seriousness of financial illiteracy in the US. It’s one thing to not exactly understand how a bond works, but if one third of Americans can’t even identify this basic retirement saving vehicle, how on earth could those same folks ever be expected to accumulate enough assets on their own to adequately prepare for retirement?
To this point, this next article has some pretty staggering stats on the savings habits of these same folks, and it appears the trend is not getting any better. With a median savings of only $6,200 for families between the age of 44 and 49, according to this report from the Economic Policy Institute, it seems safe to say that many Americans are far from adequately prepared for retirement.
This saving crisis does seem to be prompting some new conversations about the evolution of the concept of retirement. Here’s a different twist on the concept of retirement which speaks to perhaps a changing perception of the term, especially among the younger generations. Maybe for some, retirement doesn’t have to look the same way it did for grandma and grandpa.
For those who still seek a traditional path, this next article has some great tips for helping get your retirement goals back on track.
The articles in this month’s roundup tell an interesting story: that there is a serious financial literacy crisis in this country that develops into a saving crisis when individuals do not have the tools to help them adequately prepare for retirement. For some, this is going to mean they will either have to change how they view retirement all together, or buckle down and get creative on ways to secure their financial future. Pension benefits like LAGERS are a tried and true tool that allows individuals to focus on pursuing their careers without expecting each individual to also be an expert investor. The last article this week highlights some of the great benefits of having a pension as a piece of your retirement savings toolkit.
Read: LAGERS is Getting it Right!