Retirement savings crisis: what can you do? - KMSP-TV

Retirement savings crisis: what can you do?

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Derek Jeter, David Letterman, and Barbara Walters are retiring soon. They certainly don't have any concerns about having saved enough money. But obviously most Americans are not in the same position.

Ross Kenneth Urken of TheStreet.com says Americans are not programmed to save for the future. We're programmed to pay for what we need now. Plus, wages have remained stagnant since the crash in 2008 making it more difficult for people to save.

So, if you're in your 40s or 50s and haven't saved for retirement, what can you do? Urken says a Roth IRA is an option. You can put in $5,500 a year if you're single and make less than $127,000 a year or if you're a couple and make less than $188,000 a year. When you retire, the distributions from your Roth IRA are tax-free.

Urken also suggests investing, if you can, in mutual and index funds that are conservative and low-risk. He says after most Americans retire from one job, they will have to work at another. And if you do, a lot of people will be joining you.

The U.S. Census Bureau says the elderly population will more than double by 2050, to 80 million people. As many as 1 in 5 Americans could be elderly. And most of this growth will occur by 2030.

Urken says there is a benefit, though, to working beyond the age of 62 and delaying Social Security.

 

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