Is it time to give up? Should we just admit Americans can’t plan for their own retirement?
No retirement account? There are several retirement accounts available that don’t involve employers. And even without them saving and investing is always possible.
No employer plan is an excuse and not a very good one, but understandable as it takes discipline to save and plan for the future. And it takes avoiding or delaying the things you really, really want.
In place of pensions, companies and investment advisers urge employees to open retirement accounts. The basic idea is workers will manage their own retirement funds, sometimes with a little help from their employers, sometimes not. Once they reach retirement age, those accounts are supposed to supplement whatever Social Security might pay. (Today, Social Security provides only enough for a bare-bones budget, about $14,000 a year on average.)
The trouble with expecting workers to save on their own is that almost half of U.S. families have no such retirement account, according the Federal Reserve’s 2016 Survey of Consumer Finances.
Of those who do have retirement accounts, moreover, their savings are far too scant to support a typical retirement. The median account, among workers at the median income level, is about $25,000. “The U.S. retirement system, and the workers and retirees it was designed to help, face major challenges,” according to an October report by the Government Accountability Office. “Traditional pensions have become much less common, and individuals are increasingly responsible for planning and managing their own retirement savings accounts.”
P.S.Over 50% of the millions of visitors who gamble in Las Vegas alone are over age 50 and 25% are age 65 and older. That ain’t a retirement account🤑