Bohemia, NY (PRWEB) October 26, 2013
Chris Hobart, the CEO of Hobart Financial Group and a leading RIA provider, responds to an article published by US News discussing the problems that younger Americans face in retirement planning.
According to the article in US News titled “The Challenge of Saving for Retirement,” the current personal savings rate of the average American is worrying. The contemporary savings rate in the United States has steadily decreased to half of what it was over fifty years ago. Yet, younger generations actually need to save more money than their parents did, due to the modern issues in American economics.
The article says some of these issues include:
- Declining pensions
- Overbearing college loans
- Parents not teaching children the importance of saving
- The bleak future of Social Security
- The general impulse spending culture of 21st Century America.
The article suggests that people over the age of 35 start planning for retirement immediately, or risk having to delay retirement. “An individual who begins saving for retirement at age 35 to 45 must save 13 percent to 20 percent of their income and an individual who starts saving at age 45 to 55 must save 20 percent to 40 percent of their salary. Later savers are also more likely to have to delay retirement.”
Chris Hobart, CEO of Hobart Financial Group, a leading RIA provider, says young people are often at a disadvantage when it comes to retirement planning. “Many younger workers under 35 believe they can start saving for retirement at any time down the road,” he says. “That’s just not the case anymore. Social Security will not be enough to supplement most employer provided retirement plans like 401(k)s or IRAs. However, young workers are also lacking the knowledge of smart investing, which is crucial if they want to generate spendable income when they retire.”
Hobart says consulting an RIA about ways to safely invest for retirement at a young age could be extremely beneficial. “It’s understandable that many young workers are paying off astronomical college loans and don’t have enough money to think about investing,” he says. “An RIA can take a look at the bigger picture and help you solidify an investment strategy that works with your income.”
Hobart Financial Group is an independent North Carolina financial advisory firm dedicated to personalizing service with uncompromising integrity. Its focus on comprehensive, tax-advantaged plans help to provide sound preservation of capital, growing income and increased returns with reduced risk. Chris Hobart, founder of Hobart Financial Group, understands that true wealth means being able to share your life with the people you love, free from financial anxiety. Hobart Financial helps Carolinas’ retirees preserve and protect their wealth with comprehensive financial retirement planning and wealth management.