Not all of us have the ambition to work until we drop. The majority of the population seems to look forward to those golden years when we get to travel, volunteer for the non-profits we love, and spend time with our families. But how are we expected to get there in the current environment?
For some of us, there’s little-to-no expectation that social security is going to exist by our retirement age. Investments in the stock market are precarious. Even investments in “conservative” employer sponsored 401k plans are now deemed risky after dramatic swings in account values. Statistics portray this lack of trust in retirement plans, as 53% of individuals between 36 and 40 years of age reported in a national survey that they were “not too” or “not at all” secure about retirement savings.
So, it’s very important for individuals to be knowledgeable, ask questions, and be prepared. If you want to retire one day then make sure you are proactive and that you plan ahead.
- How much will you need in monthly income once you reach retirement in order to maintain the lifestyle you’re used to living?
- How much do you need to contribute from your weekly pay in order to get you there?
- What types of investments should you invest in today and how often should they be re-evaluated?
If you’re an entrepreneur and the owner of your own company you’ll need to educate yourself on the answers to these questions or turn to a knowledgeable advisor for guidance. If you’re employed at a company that offers a 401k plan, your employer should have one of these knowledgeable advisors available for you to utilize. (Employers beware! You have a fiduciary responsibility to provide this service to your employees.)
The good news is that current statistics show individuals may already be following this approach and planning ahead appropriately as annual employee 401k contributions grew 7.3% in the past five years. You know these individuals must be looking towards those golden years.
If you’re an individual who would like assistance with planning for your retirement please contact our Financial Services Group at 440-449-6800 or try out our retirement planning calculator. If you’re an employer who is sponsoring a 401k plan and have questions about your responsibilities, please contact Marilea Campomizzi at 440-449-6800.
For more information on the statistics referred to in the above blog, please see the following article by Employee Benefit News