(NETWORK INDIANA) You probably know you need to save more for your retirement, even if you’re not doing it. A lot fewer of us are saving for retirement than we used to.
Financial consultant Peter Dunn, “Pete the Planner,” says if you want to maintain your standard of living in retirement, you need to be setting aside one-eighth to one-seventh of your income. But only 40-percent of us have set aside anything at all.
A generation ago, many people had pensions through their jobs that took care of that for them. Not only are pension plans less common, but Dunn says our spending habits have changed. The average new home is four times larger than in the ’50s, even though the average family is smaller. And Dunn says in the last three months, despite booming economic growth, the average savings rate was the third lowest ever.
Indiana Senator Todd Young (R) says he expects Congress to pass a bill after the election which would make it easier for businesses to save overhead costs by pooling their resources to jointly operate 401(k)’s.
Young and Dunn spoke at a National Retirement Security Week forum in Indianapolis.