Retirement should be anticipated as the reward for a lifetime of work. But too many adults rightly feel a sense of foreboding at the prospect if they have not prepared adequately. In an age where pensions are an artifact of a bygone era, the burden falls upon each of us to save and invest for our golden years. But the reality is too few of us have set aside enough to ensure a comfortable retirement. Study after study have demonstrated we aren't saving nearly enough to get the job done, often because we don't know where to start.
National Bureau of Economic Research estimates more than 90 percent of all private contribution to retirement savings plans now goes to defined contribution plans such as 401(k)s, and less than 10 percent into traditional pensions, increasing the need for individuals to master the financial skills necessary to reach the finish line.
Christopher A. HopkinsMillennials in particular are falling farther behind. According to a recent analysis by the National Institute on Retirement Security, 66 percent of working Millennials (born between 1980 and 1996) have saved literally nothing for retirement. With each passing year, the hill gets steeper.
Meanwhile, debt continues to accumulate, complicating the picture. Student loan debt in particular is exploding, adding to the mounting burden of preparing for the end of our working years. Some 44 million Americans have some college debt, totaling an astonishing $1.5 trillion. That figure is $620 billion more than all the credit card debt in the United States. And for the first time, we are witnessing examples of Social Security payments being garnished to repay old student loans.
It has never been more important for Americans to actively engage in enhancing their own money skills. Fortunately, there are many more sources today providing financial education resources, both online and in person, including right here in our community.
April is Financial Literacy Month, an annual opportunity to highlight the need for education and to offer resources to get the job done. This coming Saturday, numerous agencies and providers will come together to offer valuable financial education, counseling and consultation, all free of charge.
Money School is an information-packed half-day event organized by Chattanooga Neighborhood Enterprise to enhance financial knowledge and promote essential money habits. The event is completely free to participants age 13 and up beginning at 8 AM at the Brainerd Crossroads. The event features a full slate of workshops dealing with critical financial skills including credit management, basics of mortgage loans, investments, budgeting, estate planning and much more.
Workshops cover a range of crucial topics, divided into five broad categories: The Road to Homeownership, Preparing for the Future, Planning for the Now, Getting out of Debt, and Money Skills for Teens.
In addition to the class sessions, a number of financial professionals will be on hand to offer one-on-one sessions covering credit report analysis, mortgage assessments and personal financial advice.
"Money School provides resources to empower the citizens of Chattanooga to make knowledgeable, confident financial decisions," says Martina Guilfoil, president and CEO of CNE. "The cornerstone for a strong community is stable families, and a key component of family stability is financial literacy and money management skills. These are services Money School offers."
This annual event has grown rapidly in the four years since its inception, and 2018 promises to the biggest and best yet. For more information, check out www.MoneySchool CHA.org or call 423- 756-6201. A small investment of your time this Saturday will continue to pay big dividends in the years ahead.
Christopher A. Hopkins, CFA, is a vice president and portfolio manager for Barnett & Co. in Chattanooga.