Have you ever seen a glacier move? It's definitely not an activity we recommend for a first date--mostly because it takes so long and first dates--by definition--are painful enough on their own. The point here is that glaciers move about as fast as employees enroll in their company-sponsored retirement plans. If they aren't eligible the day they start their jobs, employees tend to forget to enroll when they do become eligible. Also, most people feel inadequate when faced with making investment decisions, so they put it off. Still others are unaware that the tax advantages and long-term growth potential of company-sponsored plans outweigh their "I can't afford it" rationale.
General consensus is that Social Security won't be all things to all people. The government has created a range of individual retirement savings plans over the years to encourage Americans to assume responsibility for their own futures. It started in the late 1950s with a defined contribution plan called the 403(b) plan. It is an investment plan for employees of non-profit organizations, hospitals, public schools and universities. 401(k) plans were introduced about 20 years later for employees of for-profit organizations.
We are huge proponents of 457, 403(b) and 401(k) retirement plans because we firmly believe in taking personal responsibility for funding your retirement. We're also quite fond of retirement plans for small-business owners and others without access to company-sponsored plans. In short, these plans get you into the habit of saving money, and they'll give you some tax breaks to boot. The sooner you start investing in one, the more relaxed your retirement could be.
Get started by checking out our ready for retirement calculator, which can help you get a handle on how much you may accumulate for retirement during the course of your working years. It doesn't factor in the amount you save by bringing your lunch to work every day, so be sure to add that figure to the equation.