Retirement : Financial Shortfall? Essay

768 Words Apr 10th, 2015 4 Pages
Retirement: Financial Shortfall
Most everyone has to ask themselves at some point in their life if they are ready to retire. There are many factors that come into play to answer that question but the biggest factor for most people is financial readiness. In 2010, Forty-four percent of U.S. workers had not saved an adequate amount to retire at the normal age for full Social Security benefits, according to the Survey of Consumer Finances (SCF) model target (Pang, Warshawsky, & Watson, 2014). The SCF compares the actual household savings, expenses, and other retirement benefits with the survey targets to make this determination. What are the contributing factors that cause U.S. workers to be ill prepared financially to retire? This paper is going to focus on three of those causes: Overwhelming investment options, delayed savings, and inadequate savings rate.
There are so many options out there for saving and investing for retirement that it can be an overwhelming endeavor. Knowing how to invest or what to invest in is not knowledge that comes naturally. The terminology in its-self is like a foreign language. Words like 401k, IRA, portfolio, diversification are just a few you hear on the television, radio, and even from friends. There is also the fear of losing money invested due to Ponzi schemes, which too frequently make headline news. For example, Bernard Madoff swindled billions of dollars from investors and Dante DeMiro took approximately $10 million in his…

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