Workers have retirement ‘overconfidence’

The following article from MSNBC talks about the issue that people are not saving enough for retirement. They say that 68 percent of workers feel they are confident with how much they have saved which is up from 65percent last year. More than half of all workers say they have saved less than $25,000. The study feels that people are overconfident with how much they have saved and this will end up leading to trouble later on. Companies today are cutting back on pension plans or eliminating them totally so workers will need to rely solely on their savings and social security. The article feels that if workers entering at today at 25 years old would start saving 15 percent of their income would be able to retire at the age of 60 and live comfortably.

I feel this is a great issue with today’s economy and the cut back on social security. Social Security may run out by the time I am able to claim for it so I will need to look for other sources of income or have saved enough to stay stable. The rising costs of health care are also another issue that is causing controversy and that people need to account for the steep rise in that. Health care prices have risen much faster than inflation. I feel that people should have to be educated in this subject before they enter the work force. This should be a requirement for college students over them having to take other electives that do not pertain to life ahead, but that just culture them.