Pre-Retirees Seek to Prepare for a Harsh New World
The experts agree. Retirement is getting more complicated.
The defined-benefit plan seems headed for the museum. What will Social Security and Medicare provide a decade from now? With people living longer, will their retirement income last?
While publicly traded companies can offer stock options, that isn’t an option for credit unions. A 457(b) program is one way to fill that gap. It offers the executive the possibility of putting aside $16,500 of his own money to make up the shortfall.
Are credit unions keeping up with the changes that have taken place? Overall, Albraccio said, they recognize the shortfalls and are working to make adjustments.
Andy Sheeter, president of Sheeter Consulting, cites post-retirement health care as a key issue. Very few retirees are in good shape when it comes to paying their medical bills in retirement.
“There are a few lucky ones out there who may have had a spouse who was in the military or worked for the school system,” he indicated. “But those are few and far between. The vast majority of people are really on their own.”