Thursday, May 10, 2012

Yikes!

A new study out from LIMRA found that 49 percent of all Americans are not contributing to any retirement plan.  The worst demographic was 18 to 34 years olds.  In this group, 56 percent were not saving.

As Washington, DC, and state leaders focus on changes to how retirement advice is given and received, these numbers should be kept in mind.  There is already a retirement savings crisis.  It is important it not be made worse.

As to why people are not saving, the survey found that:
Nearly half of consumers said they aren't planning to contribute to an IRA because they can't afford to, and only a quarter of Americans have worked with a financial professional to plan for retirement, the survey found.
These answers suggests any proposals that make savings more expensive or experts harder to find move us in the wrong direction.