Notes On Current Savings Rate

• Norms: The normative sample included 1266 retired individuals residing in Florida age 65 to 91. There were 350 men between the ages of 65 and 85, and 750 women ages 65 to 91. The population was mostly middle to upper class retirees.

“Only 24% of Baby Boomers are confident they will have enough savings to last throughout retirement, down from 36% in 2012.” (Frankel) This is the reason more Baby Boomers are working longer before retiring. At the same time the Millennials were growing up through the recession, acquired student loan debt and were entering a very competitive job market. Robin Lewis captured this reality through this quote. “This is a generation that is bigger than the boomers in population, but their wallets are smaller, and they are more into the style of life than the stuff of life.” This backs up a study conducted by Bank of America Merrill Lynch that shows “A whopping 82% of millennials are investing in a retirement savings account and 75% of the baby boom generation does so.” (Abrams) The main reason for this pattern is the Millennials are investing in retirement accounts at work many of which have matching programs and Baby Boomers are skitish of the market and losing more of thier retirement.

Short term interest rates cut the rise of inflation. In the 1960’s price stability was sharped in the financial market. The United States treasury rates were at a 6 percent. In 1969 interest rates were at an all time high of 9 percent. The interest rates in 1960 fluctuated up and down. From a 4.08 in 1962 to 5.53 In 1968. Less interest added money into the economy. When the interest rate was low in the 1960s it helped bring the united out of the recession that had developed. According to encyclopedia.com foreign trade helped economic growth. The trade expansion act which was granted in 1962 allowed more power to the president. Tariffs rates were lowered between 35 to 40 percent. Us imports increased by 150 percent from 1960 to 1967.

During the Federal Reserve meeting in April 2016, the range was left unchanged for federal funds at 0.25 percent to 0.5 percent (TRADING ECONOMICS, 2016). Labor markets experience growth confirmed by policy makers, yet economic activity was monitored as being slow (TRADING ECONOMICS, 2016). The risks associated with the financial developments of the country have ceased (TRADING ECONOMICS, 2016). The average percentage of interest rate in the U.S. averaged at 5.8. March of 1980 a record high was recorded at 20% (TRADING ECONOMICS, 2016). The lowest interest rates were recorded in the month of December 2008 at 0.25% (TRADING ECONOMICS, 2016).

I have read many articles that say the amount you save for retirement depends on X, Y and Z. They all say that one size doesn’t fit all, but we are not saying that. In this article, you will see solid numbers and you will see usable percentages that you can apply right now to your 401K savings plans.

There are many different ways to save money and there are different things to save for. A savings plan for an immediate want is apparently different than a savings strategy for retirement. One may choose to select stocks, bonds, or mutual funds for a savings strategy, however, my personal choice is to invest in bonds first, then mutual funds.

Envision feeling cold, starved, petrified, and alone, just getting home to find an eviction notice, perhaps a letter of foreclosure hanging from the door. As the room goes grey and begins to spin, four words begin to echo in the background, “Is this really happening?” All resources are exhausted and Social Security proves ineffective. Fear has taken over. Thoughts of life in a shelter cloud the room. The bills are piling high, as bank accounts begin to dwindle. Unfortunately, this is the harsh certainty of many people in the aging community. Retirement is a critical life event that everyone has to undergo, through being unprepared, many fall victim to poverty in old age. Individuals should utilize Individual Retirement Accounts,

The Baby-Boom generation is nearing retirement and it is clear that millions of aging Boomers are financially under prepared. Reasons are many - poor savings habits, rising medical costs, the demise of guaranteed corporate pensions, and the dreaded squeeze faced by many: i.e. having to pay college costs for their children, care for their elderly parents, and save for retirement, all at the same time.

Many defined contribution plans offer a matching contribution from your company. These matching contributions are often 50 cents for every dollar that you contribute to a level that is a maximum of a certain percentage or dollar amount of your salary. Many employer's limit the matching contribution to around 2.5 to 3 percent. For you, a matching contribution is literally free money. You only get it by putting more in your retirement savings. Since you do not pay taxes on a 401(k) until you withdraw the money at retirement, you have essentially increased your income without changing your tax

In addition, there is more portability for retirement savings; 401(k)s can be rolled over into IRAs if employees change companies. This is a significant benefit for millennials who are expected to remain with companies for 3-5 years before switching. Further, as for retirement plans similar to a Roth or Safe Harbor, a traditional 401(k) is less expensive and easier to manage. However, these types of plans can be added on later, if SmartKidz would desire.

The tax law also includes an added savings incentive for participants age 50 or older permitting them to make annual "catch-up" contributions. The catch-up amount is $4,000 in 2005 and then increases by $1,000 per year until reaching $5,000 in 2006 (indexed in $500 increments after 2006). (OppenheimerFunds, 2006)

Once Mary and Joe Garner establish their investment goals and complete a financial checkup, they should begin investing to prepare them for retiring at age 65. In order to do so they must first make sure that their personal financial affairs are in order and begin to pay off their credit card debt. Getting their financial affairs in order is a process which begins by learning to live within your means. The next step is to save up enough money for emergencies, enough to equal to three to six months for living expenses or more.

Retirement Retirement seems to be one of the most often overlooked areas of people’s future plan. Simply because it seems so far away, it is an area that is subject to procrastination. People are expected to live longer now than ever before, this is another reason why young adults and teenagers are not worried about saving for their retirement. The baby boom generation, the seventy seven million people born between 1943 and 1960, face an entirely different retirement plan. As they began to retire, people are starting to think that there will be no money left and this will turn into a crisis. What will happen when seventy-seven million baby boomers begin to want the money they paid in… but it is not there? Retirement provisions such as

With the workforce in America decreasing due to hard economic times, there is no guarantee the money put into the reserve will sufficiently support a generation when it is time for retirement. Depending on Social Security to support a person financially when ready to retire, will leave that individual in even more of a struggle than the beneficiaries trying to survive in these earlier years of the 21 century. Social Security benefits represent about 41% of the income of the elderly; if there is not enough to support even half of the elderly’s financial needs now, there is no reason a younger person should depend on it alone for retirement (Dewitt, 2010) in the future.

The demographic questions have occupied for a few years an important place in the great debates of economic policy, in France as well as in the principal industrialized countries. In other words, all the large industrialized countries will know a considerable ageing of the population during the next decades. In the academic circles and the business press, they believe that the ageing of the population will have important effects on the financial markets following the impact awaited on the rates of saving and the request of the fund's investments. To develop the subject, we will initially present the various studies made by certain authors to justify the common claims according to which the demographic factors probably