-- A recent report from the Harvard Business Review, states that the unemployment rate has dropped to 5.8%, the lowest it's been since the financial crisis of 2008. Although the economy has seen significant improvements over the past six years, there is one area that has taken a tragic hit, and remains painfully slow to recover: Retirement.
Based on a Wells Fargo/Gallup survey conducted in August of this year, USA Today states that nearly 50% of investors in the U.S. worry about outliving accumulated savings. In addition to this startling statistic, according to the Bureau Labor of Statistics, close to 50% of Americans don't even participate in a retirement plan," where those who participate in a plan are far from having enough to support oneself once retired. An EBRI (Employee Benefit Research Institute) survey reports that two-thirds of workers between the ages of 45 to 54 have less than $50,000 in retirement savings.
The lack of economic stability has had a huge impact on society, where people's optimism and trust have been severely shaken. Declining house values and the loss of investments people have endured, coupled with the recent lack of job permanence, have changed the attitude that many have towards finances to one of fear, skepticism and caution.
Karen Wimbish, director of retail retirement for Wells Fargo believes people are still reluctant to put money back into the stock market although it's the most effective way to amass savings, stating "many people haven't saved enough... some lost a lot of money during the Great Recession and 'haven't healed' from the experience."
This economic time has also effected the rise of the freelance worker, who is without a company pension and as a result forced to be self-reliant when planning for retirement. Per a Wall Street Journal report, one-third of every U.S. worker "is now a freelancer." Additionally, software company, Intuit, predicts that by the year 2020, "more than 40% of the U.S. workforce" will be freelancers.
In a recent interview, Jamie Hopkins, assistant professor of taxation at The American College, explains that many self-employed individuals "are not saving regularly for retirement" and approximately 28% don't save for retirement at all. "One reason is because income is often more volatile and less predictable. It becomes harder to save for retirement when paychecks fluctuate."
Although the situation may seem bleak, there are those who believe that there's still hope.
Ken Widdel, Senior Vice President of Ohio-based firm, Creative Financial Partners, works with many who have been affected by the recession and has consequently seen clients bounce back, even while the economy remains unpredictable.
"This is still a strange and slow period of financial recovery for the country," shares Widdel. "This recession was a shock to many, and as a result, it is mandated to challenge clients to think outside the box in order to get back on track. The goal is to maximize net income at retirement with the least amount of risk, which is possible, even in this unstable economy."
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Securities (and investment advisory services) are offered solely through Ameritas Investment Corp. (AIC). Member FINRA/SIPC.AIC and Creative Financial Partners are not affiliated. Additional products and services may be available through Ken C. Widdel or Creative Financial Partners that are not offered through AIC. Representatives of AIC do not provide tax or legal advice. Please consult your tax advisor or attorney regarding your situation. [email protected].
Contact Info:
Name: Ken Widdel, Sr. Vice President
Email: Send Email
Organization: Creative Financial Partners
Phone: 419-873-8500
Website: http://www.cfpohio.com
Source URL: http://councilofeliteadvisors.com/liftmedia
Release ID: 70070
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