Ontario, CA (PRWEB) July 16, 2012
A recent article published by World Net Daily further raises anxiety about the influx of Baby Boomers reaching retirement age in the next 5 years. The Employee Retirement Income Security Act of 1974 (ERISA), a law supposed to benefit Americans’ retirement and disability plans, enacts harsh penalties on retirees who do not exit the stock market by age 70.
Many employees have used ERISA to save for retirement through IRA’s and 401(k)’s. Almost half, 48%, of that money is invested into the stock market. That percentage could have serious consequences on the slowly recovering stock market once a large demographic, like the Baby Boomers, all start turning 70 at the same time, says Frank N. Darras, America’s top insurance lawyer.
Once retirees turn 70½ years old, they must exit the stock market and withdraw at least the required minimum or risk losing 50% of their retirement account. Chances are retirees will not be willing to pay the extra premium and risk losing that much from retirement. Imagine the consequences to the stock market if all of the Baby Boomers try to withdraw concurrently.
“Considering the devastating recession that already occurred, it is scary to think of the possible repercussions that ERISA’s policy will have on the stock market. Baby boomers reaching retirement age should be aware of the law and consider withdrawing before age 70,” says Frank Darras, America’s top insurance lawyer.
The fine line on so many of ERISA’s policies is just one more reason to consider private retirement and insurance options. Disability insurance provided by ERISA has a long reputation of denied claims and workers never receiving their proper insurance benefits. Often, workers who face long-term disability have to take funds from their retirement just to make up for the holes their company’s long- term disability ERISA policy leaves.
“Now more than ever, workers should consider private long-term disability and long-term care insurance and retirement plans that aren’t under the unreliable and often sticky government plans. Paying a little more for individual coverage may save you a lot later-both money and stress,” says Darras.