Investing is intimidating. A lot of smart people spill many words on ridiculously complex investment topics. If you're like me, you might just see a bunch of numbers and run away.
But no one really has the luxury of ignoring the topic entirely. After all, there are decades of retirement to be paid for, which is where workplace retirement plans such as 401(k)s come in. With the help of an employer-sponsored plan, everyone can easily funnel money into a few investments of their choice and voila -- investing.
But it turns out it's not that easy. Even with a curated set of investment options, many employees feel overwhelmed trying to sort through them. Not only that, it's difficult to decide how to invest when you don't know what your goal should be. Many plan sponsors could be doing a better job of helping employees determine their goals, according to a blog post on the Squared Away Blog from the Center for Retirement Research at Boston College.
In a recent employer survey by the benefits consulting firm Callan Associates, 42 percent said they gave employees retirement-income projections. And that figure sounds high, perhaps because Callan surveys primarily large companies.
That means most companies don't help employees get a sense of how much income their savings will generate in retirement, much less how much they should be aiming for, and that can make hitting retirement goals pretty impossible. The point is illustrated in this hilarious poster from Ackley Associates.
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