A number of individuals use retirement plans to prepare for their financial futures, and whether they use options from their place of employment or through other channels, many are interested in some alterations.
Approximately 55 percent of Americans who have a retirement plan noted interest in automatic annual contribution increases, according to a report from the American United Life Insurance Company. A number of financial issues are being dealt with by Americans that may interfere with their ability to factor in contribution increases. Nearly 30 percent noted that they are trying to pay off debt, while another 23 percent are struggling to pay for their expenses on a daily basis. A total of 11 percent said that taking care of their family members was their main priority, while 4 percent said it was to save money for college.
“With non-stop family, health and life events and changing financial obligations over the course of one’s life, saving for retirement can easily fall to the bottom of the priority list,” said Marsha Whitehead, vice president of marketing for retirement services for the companies of OneAmerica. “Automatic features can help plan participants easily increase their retirement contributions and not get distracted by other financial matters.”
Many Americans struggle to save for retirement
A number of individuals may be trying to create and stick to a strong personal finance plan, but this can be difficult for some. According to a report from Northwestern Mutual, 20 percent of Americans expect to be giving their parents or another loved one long-term care in the future. This can be difficult due to these individuals needing to pay for a notable amount of the financial requirements for these bills.
“Saving for retirement while maintaining a desired lifestyle is challenging enough on its own,” said Steve Sperka, vice president of long-term care at Northwestern Mutual. “For members of the Sandwich Generation, who are also juggling family obligations, a focused financial strategy is integral to achieving their goals without sacrificing their own nest egg and priorities.”
A total of one-eighth of Americans between the ages of 40 and 60 are a part of the sandwich generation, the report noted. These are individuals who will need to care for their parents while still having children living at home.