Baby Boomers Don’t Abdicate Responsibility For Your Retirement Nest Egg

Now the dust has settled temporarily on a potential financial melt-down people are dusting themselves off and reconsidering their retirement options.image

A recent survey indicates 85% of Americans want government and employers to share the responsibility for their retirement nest egg.

According to an article by Emily Brandon on Planning to Retire, a recent survey by the National Institute on Retirement Security found

“Americans with shrunken nest eggs are feeling nostalgic for pensions. About half of those without a pension (55 percent), say the old-fashioned retirement plan would ease their money worries.”

When I went to view the web site for the National Institute on Retirement Security I found it’s headline was “New Survey Finds 83% of Americans Concerned About Retirement“.

What I found really interesting is that,

Further, nearly nine out of ten Americans believe all workers should have a pension plan.”

You can get the full report Report on the American Public’s Views on Pensions and Retirement Security January 09. It is a very easy read in the form of a presentation with pie charts. Take a look it may seriously influence which way the pendulum swings and how far.

You can read the key findings of the report in the article, “Pensions and Retirement Security: A Roadmap for Policy Makers.”

What I found of great concern was 85% of Americans believe their retirement security was the shared responsibility of their employer, the government and themselves.

Have you learnt nothing. Do not do this to yourselves. Don’t let other people control your wealth if you can help it.

Putting the responsibility on governments or employers for your retirement security will actually be more risky. Just look at how many changes they have made to pensions and retirement fund legislation to suit their political or business agendas.

The social security system around the world has been grossly mismanaged, is going broke and is unsustainable to the point where pensions may be in doubt unless there are huge increases in taxes. The burden will be on our children until they take power. Then watch what happens when they decide we cost too much. You can’t blame them either.

Employers have a nasty habit of walking away from their pension obligations and governments have let them do it.

The private sector has done a lousy job at managing private retirement nest eggs. Not only have they lost 30-40% of your money twice in 10 years they are doing very little to find a way to protect it in the future. As far as I can see they just want to get back to doing what worked for them – not you, until 18 months ago.

There is only one person you should rely on for your retirement nest egg or pension and that is you.

There is only one person who should control your retirement nest egg or pension and that is you. You need to take responsible for your own retirement security  and preferable 40 years before you need the money.

You may delegate the actual process of investing to a financial planner. But if you do not make sure you have clear and unambiguous instructions about how your money is to be managed you can be sure someone in the chain will mismanage it for you.

That’s just the way it is 😉

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