Who is preparing for retirement?

SmartBlog on Finance has an article on who is saving for retirement and where they live.

These days, planning for retirement is a concern for most Americans.   In the past, many Americans relied on Social Security and company pensions to fund their retirement.  Today, Social Security does not pay enough for some people to be comfortable in their retirement, and most companies have eliminated pensions (if they had them to begin with). Therefore, making 401(k) and IRA contributions are critical to people’s retirement to ensure that they have enough money once they stop working.

The average American contributes $1,325 to retirement accounts per year, according to Esri, world’s leader in geographic information systems (GIS). What types of Americans are most likely to contribute?  Who contributes to 401(k) accounts?  What about IRA accounts?  Where do these Americans live?   …

The areas with the highest likelihood of residents that contribute to a 401(k) are in states on the Eastern Seaboard; in the Midwest, and along the California coast.

The article concludes that everyone dreams of a comfortable retirement, but that may not necessarily be true.  Many younger people are living paycheck to paycheck, don’t think that far ahead or believe that that can put off planning until later.  They may have crushing college loan debt and no job.  They may be looking at their parents’ savings and thinking of an inheritance.  Whatever the reason, if the average is $1,325 per year, the average person will end up with a bleak retirement.

 

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