When I read the headline I was floored. But if the TIAA-CREF survey is right,
80% of respondents said they were not contributing to an IRA, which marks a four-percent increase from last year. Additionally, close to half misunderstood the basics of investing in an IRA and how the money could be used, the study said.
That’s a staggering statistic given that IRAs have been around since 1974.
“Many individuals are still missing out on the long-term savings benefits of IRAs, simply because they don’t understand what they are and how they work,” TIAA-CREF’s director of financial planning, Dan Keady, said. “By allowing savings to grow on a tax-deferred basis, an IRA can help give your current retirement savings a boost no matter what stage of life you’re in. Even if you’re on a tight budget or just starting to save, if you start small and invest wisely, that amount should grow over time.”
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