Tag! You're it. Hope you weren’t counting
on someone else to pay your fare in retirement. Yes, Social
Security and a pension (if you’re lucky enough to have
one) will cover some of your expenses. But, the vast majority
of what it takes to fund retirement must come from you.
Why you’re “it.”
Today, Social Security provides about one-third of
the average retiree’s income. Tomorrow, as more people retire
and fewer come along behind to “feed the kitty,” there
may be even less to go around
A few employers still offer traditional pension plans
(where the employer sets aside money for your retirement and you
contribute nothing). A pension might pay up to one-quarter of what
you’ll need. But, to get this benefit, you must be “vested”
(or, qualified to receive benefits based on your years of service).
Based on scenario for married couples and unmarried persons age 65+ with career average annual earnings of $44k+
Source: Social Security Administration Brief #25, May 2007
Are You New to Your Employer?
