Monday, July 9, 2012

Does Retirement in the U.S. Work?

Looking to retire comfortably? Then don't retire in the United States. The nation has the least generous retirement package of any wealthy nation.
 
 
"We always are neck and neck with the United Kingdom, but other than the U.K., I think we are among the stingiest," adds Alicia Munnell, the director of the Center for Retirement Research at Boston College told CNBC.
 
 
But other nations are catching up. Not because U.S. benefits are getting better but because theirs are getting worse. At the same time, however, the organizations studying retirement plans, Organisation for Economic Co-operation and Development and Melbourne Mercer Global Pension Index, admit there are many factors in determining how efficiently a system works.
 
 
It's unfortunate but seniors in the U.S. are not helped and valued. Hardly any company still offer a pension and those that do often only offer them to management. Today's alternative is the 401K but many companies do not even offer that. Not to meantion that 401Ks values can fall depending on the stock market. Finally, there is social security but seniors do not recieve a significant enough pay raise to make up for inflation. It is no wonder that many of the poor in our nation are elderly.
 
 
So what do you think? Does retirement in the U.S. work? Why or why not?

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