If you are like the majority of Americans, you have not thought about retirement savings. Even if you are in your 40s, studies show that you don’t want to think about retirement income planning. It is the rare 30 or 40 year old who is serious about funding the future. Over 75% of Americans who have a 401k plan available to them, do put money into it. They fund it, however, with only 6.5% of their wages. That is simply not enough.
Retirement planning, or any financial planning, is not something that we have been encouraged to talk about or think about. Luckily that cultural stance is beginning to shift as the Baby Boomers start to retire. Well over 50% of them are not financially secure. They are now beginning to get serious about 401k plans, IRAs and Roth IRAs. They qualify for the “catch up” provision within the 401k code, because they are over age 50 (well, there are a few Boomers still under age 50) which means they can pile an additional $5,500 on top of the $16,500 allowed yearly.