Eight major concerns Americans have about retirement

The 401K retirement account provided by the employer and the individual’s regular retirement savings account are retirement savings accounts with a tax-deferred nature. The advantage of this type of account is that the pension money invested is not subject to personal income tax in the current year. Only when it is received after the age of 59 and a half will it be considered whether taxes need to be paid based on income.

If you spend the money in your account early, you will have to pay personal income tax and a fine. Usually, there will be a 10% fine for withdrawing money from a general retirement savings account early. It is not cost-effective to spend the retirement money in your personal savings account too early.

3. Lack of money makes it difficult to save more money for retirement. A major challenge facing Americans in saving money for retirement is that most of their income is used for daily living, and it is not easy to save some money for retirement from the expenses of food, clothing, housing and transportation.

Of course, people are more concerned about their current lives, and retirement is still a long way off, so if young people want to be able to save money for retirement, they need to have a strategic vision.

The survey data also shows that 30% of Americans believe that the financial pressure on their families is due to job instability. Once the company lays off employees, the jobs of the whole family may be destroyed. Another 12% of Americans believe that they are “moonlight tribe”. If people become “moonlight tribe”, will they still have the mood to think about decades later? Only 2% of Americans regard planning for retirement as a family financial pressure. The rest of the people are not without pressure. Those who can save money for retirement have saved what they should save, and those who cannot save money for retirement cannot save money even if they are whipped. The reason why 41% of the salaried workers surveyed cannot invest more money in the retirement savings plan provided by the company is not that they don’t want to, but that their monthly income is spent on daily life. In other words, they have the intention but not the financial strength.

4. Too much debt becomes an obstacle to saving for retirement. Many Americans do not want to save for retirement early, but there are many obstacles. In addition to daily expenses, they have to set aside part of their income to pay off debts.

The survey shows that 55% of wage earners are under debt pressure, and 25% of wage earners say their debt burden is heavier than it was five years ago. With the mountain of debt, paying off the debt has become a priority, and saving for retirement can only be put aside.

Americans now also see the negative impact of debt burden on family life and retirement, and are also working to reduce the habit of enjoying debt.

5. Not knowing how much money to save for retirement. When it comes to retirement, no one can set a target for how much money must be saved to live comfortably in old age.