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Essay on retirement planning
Planing for retirement assingment
Planing for retirement assingment
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This research paper address the question: Are Americans ready to retire? No! Americans are not only not ready to retire, they are not confident in how much they have saved for their retirement years. There are several reasons for this lack of confidence. According to a recent study by the Metlife Mature Market Institute, more than half of adults age 45 to 70 nationwide (a full 53%) say they are behind in their retirement goals. The study also found that 13% of those who polled have no retirement goals and 7% have not yet begun to save money. The lack of knowledge of the stock market and lack of funds to save, factors into this passive approach. Most Americans are not familiar with investment options within retirement plans and either choose not to participate in their employer’s plan or contribute a low amount that will not meet their retirement needs. A solution would be to sit down and prepare a retirement calculation to figure out how much funds would be needed for their retirement years, including the possible high cost of medical needs.
The majority of American workers in this country are not prepared for retirement. According to the 2010 Retirement Confidence Survey, the percentage of workers who can say they are very confident about having enough money to pay for their basic expenses during their retirement years increased from 25% to 29% in 2009. However the percentage of those workers who are not confident remained at 25%. According to the survey, the percentage of workers who are not too (or not at all) confident about being able to cover long-term medical and long-term care expenses has increased. According to this study, 51% of workers say they are not confident about having enough retirement money to pay for the...
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The conclusion is that even though the majority of American workers are not financially ready for retirement due to the difficult economic times, there are several steps that we can take that will begin to prepare us for long-term retirement goals. We can evaluate our family health history and create a savings plan based on possible, future health issues. We can purchase MediGap Health insurance to address those future health issues. The American worker can choose to contribute not only to their employer-sponsored plans but to a Traditional or Roth IRA. We can also choose to purchase a Private Retirement Account that has guaranteed contracts. Employers can create retirement training seminars for their employees. By taking an active approach to their retirement, workers will increase their confidence and begin to manage their long-term retirement goals.
We are all putting money into a pot, and some of us aren’t using the money or the resources that we end up helping out. There are a lot of programs that are out there to help support lower waged workers or people that can’t find jobs. Some of these programs are food stamps, medicare, and lower income housing. Everyone helps pay for these things, but there are only a certain amount of people that can use them. If you make a certain amount of money and it is too high, then you don’t qualify for them, even though maybe it isn’t high enough to live comfortably. Retirement may not come as easy for the younger generation because of the fact that people are using the social security, and we may not have the amount that we need when we retire. How our society is set up, you almost get more taken away the harder you work, and for the ones that don’t make as much, get all of the
The push for Congress to pass legislation protecting the rights of employees and their retirement was inevitable. Retirement plans are extremely important for all working individuals. Having funds to keep or exceed ones current standard of living and to enjoy one’s life beyond expectations after retire...
There are millions of Americans affected by social security. These Americans rely on social security to provide them with financial security. Recently President Bush agreed to proposing a method of privatizing the social security program so that in the future the vast reserves of the social security system would not run out nearly as fast. With the always increasing rise in inflation, and the baby boomer generation reaching ages of retirement fairly soon, this is an issue that needs to be dealt with correctly and rapidly. The way the president is handling the situation is definitely the right way to do it. There are many things and ways in which to do it wrong, but the president seems to be pointing the plans of social security in the right direction. The president’s plans of reforming social security are right because the privatization is the best way to go, changing the rules for those who would apply for it increases the savings and makes the money go farther, and working with the distribution of different tax percentages would really make the money go a lot farther.
Generation Y, more commonly referred to as the “millennials”, is today’s group of young people. Similar to other generations, each cohort is labeled with unique characteristics and inevitably faces adversities while taking its place in society. Many American’s today debate their views on the youngster generation, but none the less all sides can agree the discussion has become a hot topic. Catherin Rampell creates an open discussion in her article, A Generation of Slackers? Not So Much, addressing the main issue: Are millennials a generation of slackers. I feel strongly that my views align with Rampell’s, in believing my generation has already begun to show its capability of doing great things. Through analysis of the text and my own personal experience I am able to dispute the opposition towards my generation as well as, express the positive relationship of millennials in
In America’s early days before the kickoff of industry, there was little need for retirement savings for a few key reasons. First of all, people were dying at a much earlier age; most people didn’t live past 38, whereas in 1900, 60 years of age was common for about 40 percent of the population and 15 percent experienced 80 years of life. Another reason for the irrelevance of social security in the 19th century and earlier was that people were usually living rurally on farms with extended families to take care of them. Furthermore, the Civil War also didn’t allow the government much economic room to consider providing a service such as social security. However, after the Civil War, pensions were a form of social security for civil war veterans that carried into their retirement. Unfortunately these pensions provided support for only a very small portion of the population; not even one percent of Americans received these pensions. Despite a much lower need for social security in the 18th ...
Social Security is a system that was set up in 1935 after the Great depression to help people get through tough times. "Social Security is now used by nearly 44 million Americans"(policy.com). Only people who payed into social security are eligible to collect when they retire. Many people think that they receive the money they pay in but that is not total true. The money that you pay in is used for the people that are receiving it now. "In 1950 there were 16 workers for every beneficiary; today there are only three workers per beneficiary"(policy.com). There is more money going into social security then coming out now. The extra money goes into a trust to be used when it is needed. By the year 2032 those numbers are going to drop. By this time most baby boomers will be retired and collecting social security. This will put a big strain on the funds. There will be more money going out then coming in. And it will not take long to use all the money that is in the trust. By the year 2034 they will only be able to pay 75 percent of the beneficiaries. "The projected average monthly Social Security benefit in 2032 of about 1,100 (in 1998 dollars) would fall to about $800, and would drop further in later years. Average benefits for low-wage earners would drop from $670 to $480"(www.ssab). Theses cut would effect the people just starting to receive benefits and those who are already receiving benefits. And with each year these benefits will decrease. As these benefits continue to decrease "the percentage of aged people living in poverty would rise"(www.ssab).Most people believe this is happening because of the baby boomers generation. There will be more people taking from social security then giving in. By the time my generation is eliable to receive social security there may not be any money to give.
“We like to tell ourselves that America is the land of opportunity, but the reality doesn’t match the rhetoric - and hasn’t for awhile” (Matthew O’Brien 1). In today’s economic situations, dreaming big may seem unaffordable, but not impossible. To achieve this goal many aspects should be analyzed to understand the American dream, weakened retirement, and smart investments. Megan Cottrell states that “graduate from college. Get married. Buy a house. Have kids. Put in a few decades of hard work, and then it’s time to retire by 65. That’s the American Dream, right?” (1).
are forced to live off of. What happens if there is not enough to go
Through the years, people age and become less productive. For these reasons, they have to prepare some plans that help them secure their own future. But, there are instances that lead an individual to an early retirement. Some lack motivation and enthusiasm in their work. Others are not capable of working anymore as well because of the health issues that they are facing. Regardless of the reason, it is important that one has to work so that by the time they retire, they will not end up broke. Having this in mind, many people are already investing in a simple IRA.
There are extensive studies on retirement covering education in general. The findings suggest that education is an important factor in affecting retirement planning preparedness (Hogarth, 1985; Joo&Pauwels, 2002). Education enables individuals to explore more information relating to their retirement planning and that sources of information will influence their decisions, attitude and intention to do retirement planning (Hogarth, 1985; Joo&Pauwels, 2002). Also, DeVaney (1995) addressed that the effect of education level may serve as a motivator or guidance for individuals to start the preparation for retirement planning. With the increase in age and educational level, individual tends to be more motivated to work on retirement planning preparation or take some action for their retirement (DeVaney, 1995).
Many Americans depend on Social Security benefits--from retirees, disabled workers, and dependents. Furthermore, numerous retirees have not saved enough money for retirement through other sources, so they count on Social Security as their basic source of income during their later years. Recently, the number of persons receiving Social Security has increased dramatically. This is largely due to the increasing number of persons in the baby boomer generation retiring and also people living many more years past retirement age. This increase in beneficiaries has initiated concerns and questions about the future of Social Security for persons still working. Recent studies have shown that in its current trend, the surplus of funds for Social Security will be depleted in the near future as the increase of payments will begin to exhaust the fund’s resources. To that end, reform of some kind is needed to help sustain this benefit for future generations to come (Social Security Administration, 2014).
The Australian government will increase the age pension from 65 to 70 by 2035(Australian Department of Human services [AU]). This announcement has lots of challenges for Australian people who are under 50; some people support the rise and find it beneficial for the future economical life. However, others are against the announcement as it has lots of concerns for their future plan, as they have to work longer to save more for their retirement. The current population ageing put pressure on the young workers who support retirees and their families, at the same time it affect the economic development. So the rise of pension has advantages and disadvantages on the future life standard of most Australians. It is beneficial decision from the government to provide a productive and qualified future life.
There is no denying the fact that the cost of health care in the United States has been on a constant rise than the wage of the employees that pay to have access to better healthcare. There is the general fear among these employees that if the rising cost of the health care is not brought under control, there will come a time, and some analyst think, the time is already here, when those employees will not be able to afford health care for themselves and their families. This fear of the unknown is particularly evident among those closer to retirement. Employers of labor have for quite sometimes now, been shifting the burden of the high cost of affordable health care to their employees, and that has significantly reduced employee standard of living the past couple of years. Similarly, rising health care costs could also drive up inflation and make U.S.-made goods and services less competitive in international markets in the long run because increasing health care costs might eventually be reflected in higher product prices.
As the population of the United States ages and lifespan increases, the U.S. is being faced with challenges that could either hurt the country or benefit it if plans are executed correctly. By the year 2050, more than thirty-two million Americans will be over the age eighty and the share of the 80-plus generation will have doubled to 7.4 percent. Health care and aging population has become a great deal considering the impact it is having on the U.S. The United States is heading into another century with an outstanding percentage of people within the aging population. Today’s challenges involving health care and the aging populations are the employees of health professions being a major percentage of the aging population, the drive into debt, and prevention and postponement of disease and disability.
Allers, Kimberly Seals. "How Fit Are Your Finances?" Ebony 68.9 (2013): 93-97. Academic Search Complete. Web. 15 Nov. 2013. Bauer, Gabrielle, and John Southerst. "A promising retirement: your life, your way." Maclean's 18 Feb. 2013: 37+. Opposing Viewpoints in Context. Web. 15 Nov. 2013.