Personal Savings Guru, Jerry Golden of Savings2Income, Explains How to Plan for the “Retirement Crisis”

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Jerry Golden, developer of the retirement planning method Savings2Income, responds to a recent survey indicating that many American workers are headed for a “retirement crisis.”

On April 9, 2013, Jerry Golden, developer of the Savings2Income planning method, offers financial planning pointers in response to recent research findings which indicate that American workers aren’t saving enough for retirement.

According to the Wall Street Journal article “Workers Saving Too Little to Retire” by Kelly Greene and Vipal Monga, “[n]ew data shows that powerful financial and demographic forces are combining to squeeze individuals and companies that are trying to save for the future and make their money last,” and this trend may be setting up many American workers and employers for a “retirement crisis” even as the economy and stock market show signs of recovery.

As reported in the article, a recent survey by the Employee Benefit Research Institute found that over half of the respondents have less than $25,000 in total household savings and investments excluding their homes, an increase from 49 percent in 2008. The survey also found that almost a third of American workers “have no confidence they will have enough money to retire comfortably.”

“Rising life expectancies are partly to blame”, says the article, as well as the fact that many companies are abandoning traditional pension plans; but these problems have been “dwarfed by the impact of declining interest rates over recent years. Because of the way pension obligations are calculated, lower interest rates means that future obligations are higher today.”

Jerry Golden, developer of Savings2Income, notes that it’s not possible for individual investors to impact the proper funding of employer pension funds. “That has to be up to employers, their advisors and regulators,” he says. “But as individuals, investors can have a real impact on their retirement if they think of their retirement plan as a personal pension rather than as a savings/investment account.”

Golden offers advice for future retirees to avoid getting snagged in the “retirement crisis and to create that personal pension:

1. Think about retirement in terms of spendable income rather than in terms of an amount of savings.

2. Consider income from all sources, including Social Security, part-time work and any pension benefits from a current or former employer.

3. Pay lower fees and defer taxes on savings for as long as possible.

4. Consider staging or delaying retirement to maximize Social Security benefits and income from savings.

5. Use fixed payout annuities to create Guaranteed Income in retirement, and shift longevity and interest rate risk to highly rated insurance companies.

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.


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