Based on current statistics produced by the social security administration, the social security trust fund will be completely depleted by 2033 if nothing changes. At that point, it is estimated that the incoming social security tax will be able to cover around 70% of the obligations it has at that time. Meanwhile, 97% of surveyed people believe Americans are not saving enough to live comfortably in retirement. Does anyone else see a problem here?
There are many studies that we can quote that prove, for various reasons, that we have a hard time delaying gratification. I would rather point to one of the most obvious developments that support that conclusion: the credit card. I am not here to debate the validity of using or not using a credit card; however, stop to think of the origin of its creation? A line of credit that would enable you to purchase something now, that you can’t afford now, so that you can have it now, instead of waiting until you can save the money to pay cash. What about now? Do you see a problem here?
Saving money for retirement literally means asking someone to delay gratification. The money they responsibly put into an employer sponsored retirement plan like a 401(k) or 403(b) is money that they cannot spend now. For most people, their working life is happening simultaneously while they are starting and growing families, buying new houses, and trying to juggle a calendar that looks more like phone book than a to do list. Ok, tell me is anyone seeing a problem here!?
I found it interesting that 69% of people asked about retirement saving said they would love to hear more about the topic in this year’s presidential debate. Listen, regardless of what side of the political aisle you sit on, we all need to realize that saving for retirement is on you, me and we. We need to actively work to empower America’s workers to take charge of their own financial lives by teaching them how to appropriately use the money that they work so hard to earn by setting a budget that includes
retirement savings. I believe the best way to reach people is to meet them where they are, AT WORK! Companies that foster a culture that supports financial education and literacy send a clear message. Our company philosophy is to not only provide your employees with the right tools to help achieve financial balance, but we care enough to teach them how to use those tools. At Grinkmeyer Leonard Financial, we offer group education presentations that start with Investing 101. Our intro presentation highlights basic financial terms and concepts and couples them with appropriate right-brained exercises that will ultimately invoke action! From there we go all the way through advanced topics like Social Security planning and retirement draw-down strategies. We combine the entire system with one-on-one participant sessions where your employees have the opportunity to get advice on their personal financial situations.
Contact me if you would like to hear more about our employee education program.
Caleb Bagwell/Employee Education Specialist
John Maxwell Certified Leadership Coach
Grinkmeyer Leonard Financial
Toll-Free: 866.695.5162 / Office: 205.970.9088
Birmingham: 1950 Stonegate Drive / Suite 275 / Birmingham, AL 35242