Posted by Alma Zhumagulova
If you're one of the more than 66 million workers covered by a 401(k) retirement plan, Nancy Hwa has some news for you.
"It was a tax shelter for end-of-the-year bonuses for bankers," says Hwa, spokeswoman for Retirement USA, a group working to improve retirement plans. "The 401(k) was never even intended to be a retirement plan."
And now, many workers are discovering, it isn't.
By the end of last year, the average 401(k) balance dropped to $57,200, down 28 percent from $79,600 in 2007, according to consulting firm Hewitt Associates. Forty-four percent of workers lost at least 30 percent.
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We do not take retirement planning seriously since it is so far down the road and we have other luxuries that we worry about in the present day.
ReplyDeleteJameel
How serious it is when the economy goes downward.
ReplyDeleteShawn Gao