The popular image of the good life in America and the prospect of a decent, financially secure retirement have become synonymous over the past half century. Problem is, the evidence is overwhelming that America’s retirement savings system is broken.
Take the private economy. Retirement savings are scant in 401(k)s, the main pension plan for private-sector workers. The typical value of a 401(k) and individual retirement account for workers nearing retirement is about $120,000, according to the Federal Reserve. (That sum would provide $575 in monthly income, assuming a couple bought a joint-and-survivor annuity, calculates Alicia Munnell, director of the Center for Retirement Research at Boston College.)
Read the full article at SFGate.