Why So Many Americans Are Not Prepared for Retirement

couple prepared for retirement
Via Pixabay

Are you prepared for retirement? The unfortunate truth is that most Americans are not. There are multiple reasons for this. Of course, procrastination plays a part. We often think we have more time than we do, and retirement age creeps up on us. Another issue is even those who start saving early, might not know the best way to go about it. Furthermore, retirement plans and Social Security can be confusing and may not go as far as people think.

Being Prepared for Retirement is More Than Working and Collecting Benefits

People have this idea that if you work hard enough for long enough, you will have sufficient funds in your retirement years. Unfortunately, this is often not the case. Social Security benefits are notoriously low. They do not offer enough to live on alone. This is why employer-sponsored retirement benefits are important for so many Americans. These, often do not make for a living wage after retiring either.

Changes to Retirement

We recently shared the news that the U.S. House of Representatives had passed ‘SECURE Act 2.0,’ changing the way working Americans save. The legislation aims to increase benefits by allowing workers to start earlier and save more. This could be very helpful, however, differing visions between the House and Senate mean there may be additional changes before it is all said and done.

The other issue that could change (and needs to) is low Social Security benefits for seniors. We believe that passing The Greatest Generation Benefits Act is the best option. Learn more about this bill here, and be sure to follow us on Facebook and Twitter for more updates.