Retirement is a financial goal that nearly every individual shares. Unfortunately, planning and saving for retirement is often put on the back burner. Ubiquity Retirement + Savings surveyed 1,000 Americans about retirement. 80% of those surveyed indicated that saving for retirement is important, however, only 56% actually were saving for retirement.1
This year, National Retirement Security Week runs from October 15th – October 21st. The purpose of this week is to raise awareness and encourage Americans to take steps toward a secure retirement.
Retirement planning has arguably become more pertinent now than it has been historically. Individuals are living longer, expenses such as health care are rising and the risk of funding retirement has shifted from the employer to the employee. Until the 1980s, most Americans planned for retirement through pensions.2 The 401(k) was introduced in 1978 and quickly replaced pensions. From 1980 through 2008, participants in pension plans dropped to 20% of the US workforce while employees covered by defined contribution plans rose to 31%.3
While retirement has become more complex, the good news is that we now have great tools at our disposal. That includes the ability to build financial projections for individuals to see whether they are on track for retirement and suggest changes to meet their goals. Additionally, we can model how certain financial changes, both positive and negative, affect one’s future financial picture. Financial planning and financial planning software can give peace of mind to those looking to retire comfortably and securely.
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