Retirement Without A Pension - Part II
Description
This is a continuation of last week's podcast on planning for retirement when you don't have a pension. If you are concerned about having adequate retirement savings, you are not alone, 76% of Americans do not have access to a pension.
When 401k retirement plans hit the scene in the 1970s, they were created as a supplement to pensions provided by corporations. However, as the cost of maintaining pensions increased, corporations sought ways to trim their budgets by placing the onus of saving for retirement on their employees via defined contribution plans.
This decision has left the vast majority of Americans underprepared for retirement. The Policy of Economic Institute states, "the median family between the ages of 32 and 61 has only $5,000 saved in a retirement account, while the top 1 percent of families has a million dollars or more.
"These accounts are accidents of history that were never designed to replace pensions..."
United States
