First World Problems

The topic of retiring has become a difficult subject.  There is a lot of talk about a retirement crisis.  Many people have become worried about their future.

Mathew Greenwald, the president of the firm which conducted the research for the annual Retirement Confidence Survey, thinks that there are ways to avoid being part of the crisis.

One of these ways is to save an amount worth 20 times your salary.  This amount, plus the Social Security benefits would almost guarantee a safe retirement.  The problem with this is that if a person never receives a large inheritance of family money, it is very unlikely that he will be able to save that much from just his salary.  If he makes good investments then his savings will grow, but still 20 times the salary is quite a large sum of cash.

Greenwald also suggests that employers begin to use auto enrollment into retirement funds automatically.  When workers are enrolled automatically they are more likely to stick with the plan than they are to enroll by themselves.

Written by: Evan Chang

Source: http://www.marketwatch.com/story/3-ways-to-solve-the-retirement-crisis-in-the-us-2013-03-22

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