In the current economic climate many Americans are increasingly concerned about their income when they retire. Unfortunately, recent studies do not paint an optimistic picture and show once again the importance of investment in safe assets.
According to a new report released by the nonpartisan Employee Benefit Research Institute (EBRI), in 2008 Social Security was the largest source of income for those aged 65 and older, accounting for nearly 40 percent of their income on average.
However, given the decades-long mismanagement of Social Security and the lack of reforms that would prevent its bankruptcy, there is no guarantee that future generations of retirees will be able to benefit from it, something which may affect lower-income individuals most.
Hence, some financial experts suggest investing in tangible assets with intrinsic value such as real estate or precious metals. The latter, in particular, can shield people’s life savings from the ravages of inflation, which many believe will result from the growing national debt.
The importance of making a wise retirement savings decision is further stressed by the report’s findings that show that only 13 percent of Americans derive their retirement income from assets, while 19.7 percent rely on pension and annuities.