COMPTROLLER LEMBO: "START
SMALL, SAVE BIG" DURING NATIONAL RETIREMENT SECURITY WEEK
Monday, October 19, 2015 |
Downes (860.702.3308 |
Comptroller Kevin Lembo today joined employers across the country to
recognize National Retirement Security Week - which runs Oct. 18-24 - to promote
financial literacy and raise public awareness about the need to plan for
Throughout the week, Lembo will engage the public and deliver information and
resources through social media. Lembo is also working closely with Prudential
Retirement, which manages the state's three defined contribution plans, to reach
out to thousands of employees (through direct messages and at workplaces) about
the importance of establishing a retirement savings plan as early as possible.
"The message of the week is 'start small, save big,'" Lembo said. "Most
people believe they can't save for the future because there are bills due today.
However, even $2 per day - the cost of our morning coffee - can grow to more
than $60,000 in 30 years (assuming 7-percent average return). This kind of
perspective will hopefully prompt people to think about saving - and help them
realize that, at $2 per day, it's actually achievable.
"National Retirement Security Week is also an important opportunity to
recognize the importance of broad retirement security - and how we, as a state,
need to ensure that everyone has easy access to retirement savings vehicles.
"There are significant savings gaps between men and women, and between racial
and ethnic groups. Across all populations, pre-retirees have reported feeling
insecure about whether they have saved enough to carry them through retirement -
and retirees commonly express regret about saving too little and starting too
Lembo encourages all Connecticut residents this week - and always - to
consider the following:
- Social Security and pension plans (when available) are a foundation - but most
will need additional savings to fulfill their retirement goals.
- Ask your employer about what retirement savings plans might be available
- Those without employer-sponsored benefits may want to consult with a financial
- If you're already enrolled in a plan, now is a great time to measure your
progress and consider increasing your contributions.
Lembo also shared important retirement facts from various sources:
- 40 percent of early retirees (age 64 and younger) are hitting up savings for
routine living expenses, which increases the chance that they will outlive their
- The first person to live to 150 has likely already been born. And 1 in 3
people born today will live to 100.
- To live comfortably during retirement you will need 70 percent to 100 percent
of your pre-retirement income.
- With a few major medical advances, we may be on the cusp of living far longer
than ever before. That has big implications for our financial decisions.
- Saving for retirement ranks second as the financial matter that worries
Americans most, right behind paying bills and keeping up with expenses.
- When evaluating their current retirement savings, most Americans are not
confident they are saving enough now to live adequately by the time retirement
- Less than half of workers ages 22 to 32 are saving for retirement, despite how
painless it can be.
- More than 2 in 5 millennials in retirement plans aren't familiar with their
- With increasing life expectancy, retirements could last for many decades.
- As of 2010, only 59 percent of employed Connecticut residents aged 25-64
worked for an employer who offered access to a retirement savings plan, down
from 66 percent in 2000. (Source: "Are Connecticut Workers Ready for
Retirement," Schwartz Center for Economic Policy Analysis, 2013)
- A recent U.S. Government Accountability Office (GAO) study found that only
about 14 percent of businesses with 100 or fewer employees offer their employees
such a plan, and that between 51 percent and 71 percent of the roughly 42
million people who work for a small business lack the ability to save for
retirement. (Source: "Testimony before the Oregon Retirement Savings Task
Force," David C. John, AARP Public Policy Institute, 2014)
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