The economy’s recent downturn has people worrying about their ability to save enough money to sustain them through their retirement years. That’s according to a survey conducted by the Employee Benefit Research Institute (EBRI) and discussed on CNNMoney.com.
Only 18 percent of the employees surveyed by the EBRI felt confident that they had enough money for retirement, down from 27 percent in 2007. While this lack of confidence occurred across all categories, it was more prominent among younger (ages 25 to 34) and lower income employees (those under $35,000 annually).
Another finding is that healthcare costs are a big concern for retirees. Nearly half of current retirees (44 percent) have spent more than they expected on healthcare expenses. An even greater number (54 percent) said they are more concerned about their financial future now than when they first retired.
According to the CNNMoney.com article, this issue of higher healthcare costs is forcing employees to “wake up to the realities of being able to afford retirement.” By using online calculators, like those offered on the NADART Web site, employees are becoming more familiar with the actual amounts that their retirement will require. In fact, the EBRI survey found that 59 percent of employees who took time to calculate the funds necessary for retirement started saving more or investing more.
By sponsoring a NADART retirement plan, we can help you and your participants save for the future. We offer a variety of investment options including Target Dated Funds, which tailor their investment mix and level of risk to a participant’s expected retirement date. Plus, our low plan fees leave your participants with more money to put aside for retirement.
To find out more details about sponsoring one of our plans, you can contact a NADART representative at (800) 462-3278, ext. 7161 or e-mail us at nadart401k@nada.org.