Retirement: “the act of retiring or of leaving one’s job, career, or occupation permanently, usually because of age.”
As anyone who is retired can tell you, there are many factors related to a satisfying retirement, some logistical, some emotional and definitely some financial.
It’s that financial part that seems to get a lot of attention and not too much coordination. Everyone is in on the act, except all too often the individual.
Then there is the question of funding. Should it be voluntary on the individual’s part, via taxes, as part of a workers total compensation or forced individual savings?
As things stand now we seem to be tripping over ourselves and getting nowhere.
Our retirement foundation is Social Security but beyond that it’s every man for himself. Even Social Security is a political football. Ignoring the fiscal problems of the Trust Fund, there are calls to expand the program and in the process turn it into another form of welfare.
Let’s see, we have IRAs, Roth IRAs, myRA, 401k, Roth 401k, 403b, SEPs and who knows what else under the IRC.
Various states are seeking to start their own retirement programs for citizens. If Americans are not using retirement vehicles currently available, how will adding more to the mix help? In fact, that will confuse people more than they are already.
Why should there be different rules, limits and distributions based on who sponsors your plan, you or your employer? Why should there be hundreds of ways to take your Social Security?
All this is extremely confusing and in some ways contributes to people doing nothing to save for retirement.
Just as with the IRC, we need to step back and rethink all this to insure the best possible opportunity for success for all Americans