Since the inception of 401(k) plans in the mid-1980s, traditional pension plans have been on a steady decline. What this means is that YOU are now responsible for making sure that you have a sufficient nest egg when you retire.
According to recent articles in the Wall Street Journal and Barron’s, approximately 80% of the working population that is within 10–15 years of retirement do not have a sufficient amount saved to reasonably expect to comfortably retire. These individuals will now either have to work longer or drastically reduce their standards of living.
How about you? Will you be ready for retirement? Below is a link to a simple calculator that can assess where you stand. You will need to enter some basic income and assumptions, and it will quickly calculate how much you will need for retirement. Also, it will calculate how much you will need to put away on a monthly basis and how much that amount will increase if you decide to wait a year.
401(k) plans were established to give the employee more control over his or her future. Are you taking full advantage of this benefit? If not, see your plan administrator and don’t be left out.
Author: Tim Murphy