What a shocker this research study is. According to National Underwriter the results of a LIMRA International study of 2,000 U.S. employees reveals that most of them aren’t saving for retirement in large part due to the high cost of health care.
“About 60% of U.S. workers who are not saving for retirement say they are extremely concerned about not having enough money for retirement.
Researchers at LIMRA International, Windsor, Conn., present that result in a discussion of results from a survey of 2,000 U.S. employees.
The results suggest that many of the 44 million workers who lack retirement savings are having a hard time paying the bills and keeping up with the cost of medical care, and that 55% lack access to an employer-sponsored retirement savings plan, the LIMRA researchers report.
About 60% of the non-savers work at companies with fewer than 100 employees, and 80% have no college degree, the researchers found.
When asked how much of their income they think they should be saving for retirement, 97% of non-savers said at least 10%, and one-third said at least 20%.”
The major problem is that many of these employees at smaller companies don’t have the option to put part of their paycheck directly into a 401(k) or other employer sponsored retirement plan. In addition most U.S. workers know very little about investments and savings and where to put their hard earned money.
Even a $100 a month mutual fund or Roth IRA would make a big difference for many people. However, they don’t know where to go for these products and in many cases don’t even know those products exist.
