Wall Street Journal ‘Retiring Boomers Find 401(k) Plans Fall Short’ – 02/19/11
The median household headed by a person aged 60 to 62 with a 401(k) account has less than one-quarter of what is needed in that account to maintain its standard of living in retirement, according to data compiled by the Federal Reserve and analyzed by the Center for Retirement Research at Boston College for The Wall Street Journal.
Even counting Social Security and any pensions or other savings, most 401(k) participants appear to have insufficient savings.
This analysis uses estimates of 401(k) balances from the end of 2010 and of salaries from 2009. It assumes people need 85% of their working income after they retire in order to maintain their standard of living, a common yardstick.
In general, people facing problems today got too little advice, or bad advice. They didn’t realize that a 6% annual contribution, with a 3% company match, might not be enough.
Poor Planning Could Force You to Work Beyond Your Desired Retirement Age
The vast majority of households will not retire with a pension.
“In 2016 we will begin paying more in benefits than we collect in taxes.” – Social Security Administration – 03/15/10
“Without changes, by 2037 the Social Security Trust Fund will be exhausted and there will be enough money to pay only about 76 cents for each dollar of schedule benefits.” – Social Security Administration – 03/15/10
Poor planning, insufficient retirement assets, lack of pensions and the risk of less than expected Social Security benefits (if they continue to exist at all) could force you to work beyond your desired retirement age.
Skloff Financial Group is Different
Skloff Financial Group is registered as a Registered Investment Advisor (RIA).
An RIA is obligated by law to accept fiduciary.
An RIA must place clients’ interests first – before any other party
Each client has a dedicated licensed financial advisor.
Each client is provided their financial advisor’s mobile phone number
“Every client is treated with the individual attention and respect they deserve.” – Aaron Skloff, AIF, CFA, MBA – CEO Skloff Financial Group