According to a recent study by LIMRA, about half of the United States is not saving for retirement at all. The 49% who aren’t contributing to any retirement plan need an investment strategy and discipline to help them. Can exchange traded funds help?
“The findings from this survey were disturbing, given that people will increasingly need to rely on their personal savings to make ends meet in retirement,” Matthew Drinkwater, associate managing director at LIMRA’s retirement research division said. [Adviser ETF Usage Rose 10% Last Year]
What’s more, people ages 18-34 are the least likely to save, with about 54% of the 2,697 U.S. citizens that were surveyed not contributing to a 401(k) or IRA, reports Blake Ellis for CNN Money. [An ETF Trend Following Plan for All Seasons]
“In order to have the adequate savings necessary to meet their financial needs in retirement — which could last 20 or more years — it is critical that these individuals begin saving systematically early in their working years,” Drinkwater said.
Furthermore, investors that did plan for retirement and have a portfolio aren’t that much better off these days. Investors that put capital into a broad-based large-cap benchmark like the Standard and Poor 500 to grow their retirement savings most likely have not seen their portfolios budge. [ETFs Face 401(k) Hurdles]