8 Most Common Worries of Americans when Planning Retirement (1)
Although Americans are optimistic, more and more Americans are worried about retirement. According to a survey conducted by the US Employee Benefits Institute, 49% of employees say they doubt their ability to lead a comfortable life after retirement, and 28% are not optimistic about life after retirement. The survey also found that Americans have eight major worries about retirement and retirement. So what are these concerns?
1.Don’t have enough retirement savings. In the survey, 66% of respondents said they have retirement savings, which is a good sign because after all, they know they need to save for their retirement. But the unfortunate thing is that money is being saved but too little is being saved to continue living a good life after retirement. Fifty-seven percent of those surveyed have saved less than US $ 25,000 in pension funds, and that amount can be spent per year. Twenty-eight percent of those surveyed were even more miserable: they had accumulated less than US $ 1,000 in pension funds, which is a complete embellishment. Financial experts from Capital Financial Group believe that for a lifetime of work, if the monthly income is only used in daily life and cannot accumulate a certain amount of retirement money, life will inevitably face hardships. difficulties in retirement. Generally speaking, if you want to maintain your standard of living after retirement, you need to save ten times your annual income at work. For example, if a person's annual income is US $ 50,000, the pension funds saved to match it should be US $ 500,000. With this amount of personal pension savings plus social security funds received after retirement, life can be guaranteed after retirement. Financial experts suggest that in order not to lose money after retirement, people should invest 10-15% of their monthly income in retirement accounts while working. If they start saving late, they should invest in retirement accounts every month. The amount must be higher.
2. Prematurely spending funds in retirement accounts. Americans like to change jobs. It's all about selling yourself for good value in the fierce market competition. The corporate 401K retirement savings plan generally follows people, but some Americans change jobs and the superannuation funds are used for consumption. Small vault. According to the survey, after 26% of those surveyed changed ownership, the investment in their old 401K retirement accounts was either used for consumption or to pay off debt. This is tantamount to spending the funds in the retirement account prematurely, with serious consequences.
Retirement savings accounts in the United States are primarily divided into tax deferred and non-tax deferred. Roth Personal Retirement Savings Accounts are non-tax deferred retirement savings accounts. The money invested in the year should be taxed, but the advantage is that there is no penalty or early withdrawal tax payment. The employer-provided 401K retirement account and the individual's regular retirement savings account are tax-deferred retirement savings accounts. The advantage of this type of account is that the retirement money invested in the year does not have to pay personal income tax, and only if it is received after 59 and a half years. Depending on the income situation, it is not necessary to pay taxes. For advance consumption account funds, one has to pay personal income tax and the other has to pay a fine. The early withdrawal of funds from the regular retirement savings account is usually penalized by 10%. It is not worth consuming the pension funds in the personal savings account too early.
3. Life expenses is too high to save more money for retirement. One of the main challenges Americans face in accumulating pension money is that their income is used to live their lives. Of course, people tend to worry about the life in front of them. As for old age, the question is still a long way off, so if young people can save money for old age, they need a bit of strategic vision. Survey data also shows that 30% of Americans believe their family's financial pressure is due to unstable jobs: once they face corporate layoffs, jobs for the whole family can be destroyed. There are also 12% of Americans who think they are "moonlight people", and people will become "moonlight people". Are they still in the mood for decades to come? Only 2% of Americans view retirement planning as a financial strain on the family. The others are not without pressure. Those who can save pension money are saving. Those who cannot save pension money cannot save it no matter what. 41% of the employees surveyed were unable to invest more in the retirement savings plan offered by the company because they did not want to, but because their monthly income was spent on daily life. In other words, there is this heart, but not the economic strength.
4. Too much debt has become a barrier to saving for retirement. Many Americans do not want to save pension funds early, but there are many obstacles: in addition to daily expenses, income must be used to pay off debts. The survey shows that 55% of employees are under pressure on debt and 25% of employees say their debt is heavier than five years ago. With the mountain of debt paying off debts has become a big task and saving money for elderly care can only be withdrawn. Americans are now seeing the negative effects of the debt burden on family life and pensions, and are also working hard to reduce the habit of enjoying debt.
