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Holy Family Parish meetings begin

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Happy birthday Christian James Kalinoski!

<p>The dream of having financial security in retirement is not as common as one might think, according to a GenForward poll at the University of Chicago.</p><p>Forty-eight percent of Americans between the ages of 18 to 30 have not begun to save for retirement and do not have access to a traditional pension plan, according to the poll. Because of these findings, this group of young adults will be more dependent on personal savings to meet their needs in retirement in order to maintain the status quo in retirement. Traditional pension plans &#8211; which establish defined monthly benefits &#8211; are becoming rare. Additionally, many young adults also have accumulated an increasing amount of debt that delays putting away funds for their senior years.</p><p>The gap in retirement savings between the top 10 percent of households and all others is only growing wider. This forces the elderly to work longer than desired. With life expectancy increasing, the added importance of being financially secure cannot be understated, as the cost of health care is sure to rise. Even though it is easy to understand that top wage earners can afford to save earlier and more often during their lifetimes, it does not mean young adults cannot address the issue as well.</p><p>Admittedly, accumulating wealth has become harder in recent years &#8211; especially for young adults. According to the Federal Reserve, about half of current households headed by adults younger than 40 do not have enough savings to cover an unexpected expense of $400. Median household net worth has decreased by 21 percent with the lower middle class feeling the greatest negative effects.</p><p>There are many variables to consider as you try to determine how much money you will need for retirement. For young adults, the best advice is to start saving and stick to your goals. The sooner you start saving, the more time your money has to grow. Develop a financial plan and adjust it as your needs and lifestyle change.</p><p>The Department of Labor has estimated that you will need 70 percent of your preretirement income to maintain your standard of living. Those in the lower income brackets will need more. Take advantage of your employer&#8217;s retirement savings plan if one is available. In many cases, the company matches some of your contributions and there are tax advantages as well. Open an Individual Retirement Account (IRA), which can be a traditional IRA or a Roth IRA. How your contributions and withdrawals are taxed will depend on which one you choose.</p><p>It is also important to keep track of any changes that may occur in Social Security, as policy can affect future benefits. Unless there are changes, the Social Security trust funds are projected to be insolvent by 2034. Today&#8217;s young adults will more than likely receive less in benefits than their parents did if it is still in place.</p><p>The burden to save is on us due to the decline of the traditional pension plan. We all want to live comfortably in our retirement years and enjoy an established lifestyle. To do this, however, we must take charge of our future. In the words of the Department of Labor: &#8220;Financial security in retirement doesn&#8217;t just happen. It takes planning and commitment and, yes, money.&#8221;</p><style>
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<div class="metaInfo"><bylineMeta><p>Thomas Sweetz</p><p>Guest columnist</p></bylineMeta></div><div class="metaInfo"><shirttailMeta><p>Thomas Sweetz, M.S., is an instructor of business at Misericordia University in Dallas.</p></shirttailMeta></div>

Their View: Young adults and saving for the future