Wednesday, April 11, 2007

AICPA Finds Expectation Gap on Worker Pensions

A survey of nearly 1000 adults by the American Institute of Certified Public Accountants found that 48% expected to receive a pension when they retire (presumably, a pension other than Social Security). Less than 15% of those surveyed indicated that they included 401[k] or similar defined contribution-based plan as a means of funding retirement. An AICPA savings plan for retirement included: knowing retirement needs, learning what their employer offers for retirement, putting money in an IRA, protecting their savings (except perhaps emergency fund) and finding out where they stand with Social Security.

Once again, the AICPA Financial Literacy program has evidence that the program is desperately needed and that many baby boomers will soon be in for a rude shock. Although evidence of the decline (and probable incipient death) of defined benefit retirement plans abounds, the probable boomer reaction will be to blame the federal government for their financial state and demand additional income security measures. On a happier note, however, the AICPA retirement plan is a very good one.


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