75 million have no access to retirement-savings plans


Did you know that half of all American families haven’t saved for retirement? Of those who have, 25 percent have stockpiled living expenses for 1 year of retirement. The problem is that we have not adjusted to the changes in retirement savings since Social Security is weakening and employer-provided pensions are going away.

The average Social Security benefit is $11,000/year. Very few people can live on that alone. So the bulk of retirement savings has got to come from you. Over the last year, employers gained the right to automatically enroll you in a 401(k) plan and even step up your contributions every year. Laura Tyson, the former chairwoman of the Council of Economic Advisers, recently wrote in a Wall Street Journal editorial that someone forced by their employer into a 401(k) plan will save an additional $200,000 to spend in retirement.

Meanwhile, 75 million adults work for companies with no retirement plan at all. Of those millions, only 1 in 10 saves for retirement. We need to move away from depending on the government to provide for our retirement. Congress is planning to make small employers establish an IRA auto-deduction policy for their employees. That way the employees of small businesses will automatically be saving for retirement.

The bottom line is that we need to be more self-reliant. Having the discipline to save for retirement builds the character of our country. See my investment guide to get started saving for your future today. I promise it will just take you 10 minutes to get up and running!

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