A couple of phrases are making the rounds in retirement plan circles; perhaps you’ve heard them. They are “retirement readiness” and “independent fiduciary.” While they have different meanings, they are more connected than you may suspect.
We spoke with Jason Chepenik of Chepenik Financial, who advises clients about their benefit programs and specializes in retirement plans. Chepenik is convinced that one of these terms is being thrown around a little too liberally these days.
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“You will never hear the words, ‘Thank Goodness, because of my investment fiduciary, I can retire!'” Chepenik asserts. “We have a retirement crisis in America, and I’m certain it won’t be solved because of the plan’s investments.
“Yes, where the money is invested does matter. But the problems will only be solved if people save more, understand more, and can participate in better-designed plans.”
The retirement crisis Chepenik mentions is, in fact, worldwide. For today, we will focus on the trouble here at home. A Forbes® magazine contributor recently stated that the average 65-year-old American has a plan balance of just $25,000. Even if you prefer the financial industry’s estimate placing the number at $100,000, the future looks bleak for these folks and those coming along behind them; some experts estimate that retirees will need at least $250,000 to cover medical costs alone.
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