Are You Saving Enough for Retirement?
On this blog, we usually talk about how to get a job and how to be successful on that job. However, today's Associated Press article about the economy's effect on retirement savings raises some important concerns:
The new survey by the nonpartisan Employee Benefit Research Institute reveals only 13 percent of U.S. workers say they're very confident they'll have enough money to retire comfortably.
"Concerns about the poor economy coupled with the losses that have recently been experienced in the stock market have resulted in the lowest percentage (of a confident outlook) since the start of the survey 19 years ago," said Jack VanDerhei, one of the survey's authors and the EBRI research director. "But the good news is, I really do think this will be a wake up call for many people who had false optimism in the past."
Another 41 percent of workers said they're somewhat confident of having enough savings for retirement, down two percentage points from the year before. Only 20 percent of people already retired say they're very confident they'll be financially secure. That's just half of the 40 percent from the survey a year earlier.
When you take a job, upfront salary and benefits are certainly important. But it is also important that you take a look at the company's retirement plan (if they have one – many don't, anymore) and/or evaluate whether the financial package offered will allow you to save enough to retire comfortably.
How much will it take for you to retire comfortably? According to the article, a woman making $40,000/year at retirement would have to have saved over $200,000 to be able to replace 80 percent of her income in retirement. There are many online worksheets and tools to help you figure out what the "target" should be and how to get there. We also recommend talking to a financial planner and starting to save as early as possible. Many new hires feel that they can't afford to save anything, but the earlier you can start, the more time you allow for your money to grow in the markets.
Check out the full article for more statistics about retirement savings and some more ideas on how you can "recession-proof" your retirement.








