Just three short decades ago, a relatively comfortable retirement income for most individuals was comprised almost entirely of three primary sources — personal savings, Social Security benefits and pension-plan benefits. The latter two were predictable and guaranteed. Today, however, it’s estimated that less than 15% of private sector employees are covered by some sort of pension plan, and the percentage is likely to drop further as firms continue to shift the burden of retirement savings onto the individual through defined-contribution plans like 401(k)s.
Clearly the “three-legged stool” of retirement-income sources is not working. According to a recent study conducted by the Employee Benefits Research Institute (EBRI), six out of 10 baby boomers are financially unprepared for their retirement.
Read the full article at MarketWatch.