The retirement gap has been inhabiting our country for quite some time now. There are some solutions in this regard and the multiple employer plans might help us in this regard.
Closing the retirement gap possible?
In this regard, there is always space for putting some background information in: It’s not news for anybody that the experts have always considered the US retirement gap to be higher than what it should be. The money that Americans have to additionally spend to secure their retirements and their post-retiring life is a lot, to say the least. The Employee benefit Research Institute has estimated that this gap is around 4 trillion dollars of American citizen money.
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We all are pretty much aware that this gap isn’t going to close itself and unless we can provide a lot more access to the retirement plans it’s going to stay this way. Companies and individuals that don’t have workspace retirement plans can go on and fund IRAs for all their employees. According to a study, if a retirement plan is available to people that earn around 30 to 50 thousand dollars a year, 70 percent of the employees opt for it. Only 5 percent will still fund an IRA even if it isn’t imposed on them by their workspace.
It’s worth mentioning that there are many small and large companies that do offer proper retirement plans but there is still a shortage of them. In order to close the retirement gap once and for all, collective effort of all the small and large workspaces is required. If companies provide their employees the insight that they require then they are more than likely to spend the small amount of money in the urge of securing their future. Here’s hoping that this can happen in the coming years.
