According to an estimate from the U.S Government Accountability Office (GAO) released in 2016, 48% of Americans aged 55 or older have close to zero retirement savings. Although the numbers improved from three years ago signs still point to a bleak future for most Americans future retirees.
In addition to the GAO estimate, a 2018 study by the National Institute on Retirement Security (NIRS) found that more than 60% of Americans between the ages of 21 and 64 have no retirement assets from an employer-sponsored plan or defined benefit pension. The study also found that the median figure for those saving for retirement is $40,000 which in most cases is not good enough.
This is the result of bad education of investing and retirement planning. A major problem, according to GAO’s report on Nation’s Retirement System, is that retirement savings amongst Americans outside of employer-sponsored plans are low to nonexistent.
Additionally, the Georgetown University Center for Retirement Initiatives (CRI) has identified five key challenges facing retirement security. Following is a brief look at three of the challenges that we found most interesting:
1. Demographic Trends
As the population gets older, the millennial generation will be the key to achieving future economic potential. However, this generation of Americans needs to overcome stumbling blocks such as lower earnings, a much higher rate of interest, less access to standard employment benefits, and lower participation rates for the labor force.
The millennials will need outside assistance from both the government organizations and private entities to address issues related to planning for retirement and to achieve their full potential. Other trends that are affecting retirement security include urbanization, the ‘gig economy’, and a shift away from homeownership. This has put the onus on industry leaders and policymakers to introduce creative new solutions for retirement.
2. Improve Investment Returns
Is it important to find out if more income for retirement savings can be generated by improving investment returns? The simple answer to this is yes, it is possible. You can improve the performance of a retirement investment product by expanding the use of assets that you see as the product’s alternatives. Not only does this improve the long-term performance of the investment product, but it also helps to minimize the risk involved.
3. The Promise of Technology
Technology has already disrupted the retirement landscape by changing how things are done. Now, it can be used to motivate people to save and ensure their financial stability in the long-term. The ability to use intelligent technology or software to automate retirement planning and make better investment decision will only improve savings behavior and increase retirement savings.
Make Safe Investments for Retirement with Algorithmic Intelligence (A.I) Trading Software
Regardless of age, iflip’s algorithmic intelligence (A.I) trading software can help all Americans to safely invest their money and generate funds for retirement. Iflip minimizes the investment risk for Americans by providing crash protection analysis through its Retirement and Stock Market Trading AI.
Iflip’s AI software can protect and grow wealth for all investors by using advanced algorithms to keep track of all stock invested positions and predict stock market dips. This type of technology protects, preserves and grows the wealth of its customers overtime.