Are you part of the 40 percent?

Are you part of the 40 percent? -

In a recent LIMRA survey of Americans not yet retired, 40% said they currently save no money each month towards retirement .
The LIMRA research indicates that fewer future retirees will have to pay pensions for living expenses and will rely on personal savings to finance their retirement. Without a significant change in saving behavior, many Americans will not have enough money to afford to retire.
The survey also found that 19% have not yet retired adults usually save less than $ 100 a month, while 27% saving $ 100-499 per month. . Even those who have a family income of $ 50,000 or more, a significant proportion-42% -are either a savings of $ 100 or less, or nothing, monthly
Looking at the pre-retirees, results are not much better: 41% of pre-retirees are not set aside money for retirement and just over a fifth (21%) of pre-retirees save less than $ 100 per month.
People may think they are just going to keep working until they die, but research LIMRA shows that 56% of retirees retired before they should and 43 % were unintentional. So the timing of retirement can not be theirs.
Plans sponsored retirement employer, such as 401 (k), 403 (b), etc., are an easy way for employees to save taxes on retirement -free. LIMRA's study revealed that many Americans who have access to one of these plans do not take full advantage of tax deferred savings.
Although 55% of adults surveyed do not contribute at all to a plan sponsored by the employer, of those that do, 48% contribute less than 5% of their annual income. Overall, more than 20% less women contribute to their pension plan sponsored by the employer than men (39% against 50%). In addition, the survey found that women are more likely than men to contribute at least 3% of their income (19% against 13%, respectively).
The good news is, despite the weak economy, only 12% of plan participants reduced their rate of contributions during the past year; 24% increased the amount saved and 64% have kept their same contribution.
As indicated LIMRA, educate people about the benefits of systematic savings is essential. For more information on how to reach your savings and retirement goals, contact your personal consultant or agent or visit here.