Bohemia, NY (PRWEB) December 18, 2012
On December 15 2012, Savings2Income responds to an article concerning Americans who haven’t been saving enough for retirement even though government incentives have increased to help spur additional savings.
According to a Fox Business article, a survey by LIMRA “found that pre-retirees between the ages of 55-70 believe, on average, they will need less than two-thirds of their current income once they stop working.” The article continues, “financial experts typically recommend workers should plan to live on 70 to 80% of their current income in retirement.”
The article states that government subsidies and incentives are used to try and increase savings among Americans. However, studies used from Denmark provided results showing that increased incentives to use retirement vehicles like 401(k)’s are not effective in their goal to encourage savings. Instead, people are transitioning their personal savings from CD’s and money markets into retirement savings.
“A survey from Wells Fargo indicates there may be no magic formula to entice workers to save more,” states the article. Instead, the study showed those who were more confident about their retirement relied on detailed plans to determine how much they needed to exactly save. These workers also had higher spendable income and made over $250,000 a year. In addition, workers below this income level were less confident and typically did not create financial plans for retirement.
According to Jerry Golden, founder of Savings2Income, “The real need is for good, effective planning that is made available to average investors. It should not be tied to ‘your savings number’ but to the “income number” needed to support the investor’s lifestyle in retirement. We are likely to find that when retirement is expressed in terms of income, it becomes more interesting to the average investor.”
Golden continues, “Any plan for retirement income should have low fees, deferred taxes and the purchase of Guaranteed Income. A plan without efficient execution may be worse than no plan at all.”
An innovative retirement planning method called Savings2Income (S2I) created by Jerry Golden seeks to provide a clear path to retirement security for those saving for retirement, soon to retire, and recently retired. S2I incorporates Rollover IRA savings, personal retirement savings held outside an IRA or 401(k) plan and Social Security into an integrated solution