Boomers Find 401(k) Plans Come Up Short- WSJ

Here is an eye-opening article that came from the Wall Street Journal recently that addresses the inadequate funding of 401(K) plans. It explains that average balances for people ages 60-62 is about $149,400. That leaves quite a gap for the average person working to accumulate sufficient retirement savings. Read the article here.
Defined contribution plans (401k, IRA etc.) came about as defined benefit plans (pensions) were abandoned by most major corporations. As you know, that shifted the liability of retirement income from a company to an individual. Now that the first consumers of defined contribution plans are hitting retirement age, the likelihood that 401(k)s will provide meaningful income is frighteningly low.
 
This leaves a lot of people with some difficult decisions to make. The article suggests that many will be forced to take greater investment risk for greater potential returns or simply work until retirement is affordable. That doesn’t paint a very desirable picture especially at a time when risks should be reduced and millions of people were planning to leave the workforce.
 
What situation do you face? The advent of defined contribution plans gave the majority of people full accountability for retirement security. Regardless of where you find yourself, the choice and responsibility is yours to make the most of retirement assets.
 
First of all, take a look at what you have and find all options for maximizing those assets for retirement income. Eliminate risks where possible and guarantee what’s most important. Once a base level of income or assets is insured you’ll find more freedom and security with assets targeted for more aggressive growth strategies.
 
For ideas on how to achieve your goals feel free to call, email or make an appointment today. AST stands ready to assist. 
 
Bryan J. Anderson

800.438.5121 [email protected]

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