So you listened to the State Of The Union and heard President Obama muff the pronunciation of MyRA. Was that “My IRA?” Or was that “Myra,” like a woman’s name? I’m going with the latter.
There’s an excellent 2,100 word piece entitled, “Will MyRA Solve The Retirement Crisis?” on Daily Capital you may want to check out. In the post you’ll find several shocking statistics about retirement:
- 48%, or 44.5 million workers, worked for employers who did not offer a retirement plan as of 2011 (NIRS).
- Approximately 45% of households, or 38 million households, have no retirement account assets (401k or otherwise).
- The median value of retirement account balances is $3,000 for all working-age households and slightly higher ($12,000) for those near retirement age.
- Less than 1 out of 10 eligible working age individuals voluntarily contribute to an IRA.
Even if these statistics are half true, we’ve got a big retirement problem on our hands! Social Security is not going to be nearly enough, especially since it’s underfunded in its current state. (See: How Much Savings Should I Have By Age)