Until recently, many retirees have been able to rely upon the three-legged stool of retirement income sources: A defined benefit pension plan that guarantees a lifetime income, their own savings, and Social Security.
"The single best gift Congress has ever presented the American taxpayer.” “Anyone eligible to start one, should do so now!” “There is nothing more to analyze, it works.”
—”The Retirement Savings Time Bomb,” by IRA expert Ed Slott
The other day while I was driving, I thought about a recent report I read concerning Americans and their IRAs. According to the TIAA-CREF annual survey on individual retirement accounts and Americans’ savings habits, only 8 percent responded that making contributions to their IRA is a priority with their retirement savings. This is probably because the #1 motivation for saving money relates to short-term expenses—like housing, appliances or a car—rather than saving for retirement.