Most Americans believe that individuals have the primary responsibility for taking the necessary steps to ensure a comfortable and secure retirement, according to a recent Capital Group survey. Only around one in ten respondents said that employers should be responsible for ensuring people have a secure retirement, and an even smaller percentage felt that this duty belongs to the government. However, a 401(k) retirement plan and accompanying matching contributions were among the “must-have” employer-provided benefits cited by respondents, and a majority of surveyed workers said that all employers should be expected to provide a retirement savings option. Such sentiment is not too surprising since adults of all ages appear to need assistance when it comes to achieving old-age financial security.
For example, roughly two out of every five Millennials (ages 17 to 35) have yet to start saving for retirement, according to a new study by Wells Fargo. Sixty-four percent of these young adults said that they are not currently setting aside a portion of their income for retirement because they are not making enough money. Generation-X (ages 36 to 52) and Baby Boomers (ages 53 to 71) are also not in the most financially sound position at the moment, as many Americans in these age brackets reported being squeezed by the additional burden of having to care for their aging parents and/or supporting their children or grandchildren. Similarly, 78 percent of full-time U.S. workers recently surveyed by CareerBuilder said that they are living paycheck to paycheck, and more than half (56 percent) reported that they are only able to contribute $100 or less to a savings account each month.
Sources: Capital Group, Wells Fargo, CNBC, CareerBuilderPost author: Charles Couch