Retirement savings are a critical part of your financial security. Whatever expenses you cannot cover through Social Security, Pension, post-retirement employment or other source must be made up by your savings.
The retirement savings crisis in America is easy to understand from at least one perspective: Most people find building a nest egg to be stressful, and to cope they may avoid it altogether.
The anxiety is found among all ages, according to a Schwab survey of 401(k) plan participants. Four in 10 cited building adequate retirement savings as a significant source of financial stress—ahead of the 24% naming job security, 21% naming paying off credit cards, and 20% naming keeping up with monthly expenses.
Millennials are no exception. Even though they have three decades or more before retiring, 38% said saving for that moment is a major source of stress—ahead of the 29% struggling to keep up with monthly expenses, 26% dealing with credit card debt, and 24% stressed about student loans.
Savers overwhelming accept that they must take responsibility for their own financial future: Nine in 10 say they are relying mainly on their own efforts. This suggests a broad understanding of the poor condition of our pension system—an understanding that probably goes deeper than that of our presidential candidates who are either avoiding the issue or fixating on Social Security.
The candidates are missing a big chance to score with voters: 77% in the Schwab survey said saving enough to retire is a major public policy issue. Meanwhile, Hillary Clinton has only a slight edge over Donald Trump (52% vs. 48%) in terms of which candidate is seen as better on pocketbook issues, Schwab found.
Workers are committed to their 401(k) plans. In the first quarter, just 1.1% of plan participants stopped …