Media Contact: Catherine Dehdashti, University of Minnesota Extension, 612-625-0237, email@example.com
ST. PAUL, MINN. (2/10/2011) —University of Minnesota Extension has developed a new online course that teaches the basics about saving and investing for retirement. Find Extension's "Invest Now: Money in Retirement" course at www.extension.umn.edu/FinancialSecurity/invest-now.
Some people save for retirement by contributing to employer-sponsored retirement plans such as 401k and/or personal retirement plans like IRAs. Sharon Danes, an Extension family economist who led the course development said, "The question many people have is 'Am I saving enough now to live the same lifestyle that I am currently living?'"
The answer to that question is that they may not be saving enough, according to data from a 2010 Employee Benefit Research Institute study on retirement readiness.
That study found that almost 45 percent of Generation Xers (age 36-45) are at risk of not having sufficient retirement income to pay for "basic" retirement expenditures as well as uninsured health care costs. That risk increased for Early Boomers (age 56-62) of whom nearly one-half were found to be at risk. Approximately 44 percent of Late Boomers (age 46-55) appeared to be at risk.
Whether people have sufficient retirement savings depends somewhat on income levels, based on the 2010 Annual America Saves survey. Almost three quarters of people who earned above $50,000 in annual income had sufficient retirement savings. That figure compares to only 36 percent who had sufficient retirement savings with incomes under $50,000.
"Income levels are not the only reason people don't save," said Danes. "Some people say that one of the deterrents to saving and investing for retirement is their lack of knowledge about how to do it."
Invest Now: Money in Retirement is designed to be accessed anytime from a computer with internet access. Visit www.extension.umn.edu/FinancialSecurity/invest-now to learn more.
Source: Sharon M. Danes, family resource management specialist, University of Minnesota Extension