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Tuesday, June 24, 2008

Will our retirement pension suffice?

Recent studies done by the Employee Benefit Research Institute show that people are being too confident about their future financial situations. The institute states that majority of the people wants to maintain the same standard of living they have now when they retire.

Combining social security benefits and other pensions, the citizens’ income will still fall 10% short of what they would need when they retire.

Factors such as the following play a huge part why retirees are considered at risk:

  1. People maintain the standard of living as they have now;
  2. People spend more than they earn or receive;
  3. People do not save enough for their future. 24% of workers are not saving at all for retirement;
  4. Health costs continue to rise;
  5. 17% of workers had the level of their retirement benefits cut by their employers; and
  6. Only 41% of income-earners have pension plans.
What should we do about this? Let’s face it. We cannot rely on anyone else except ourselves to come up with a solution. If we keep on spending every cent that we earn, without even worrying about our retirement, then we really are in deep danger. People should learn how to save, especially for our health and retirement. Our health should be our number one concern.

Also, pensions and benefits offered by the Social Security and other insurance firms can be a huge help. They provide programs, which will help you put your financial worries in order.

But understanding the how-tos of getting these programs can be a bit confusing. It would be better if you consult your retirement benefit queries with a Social Security lawyer.