Beyond 401(k)s and IRAs, one investing plan is underestimated
IRAs and 401(k)s are pillars of retirement saving, but there is one more pillar that many Americans don't consider.
Creating a retirement savings plan is complicated. That's one reason so many people in the U.S. don't have one. They don't have IRAs or 401(k)s and perhaps believe their Social Security benefit will be enough to support them after they retire.
It won't.
Fifty-three percent of retired Americans said they expect they will need to use Social Security to pay for necessary expenses, according to 2024 survey from Bankrate. Among those 60 and older, 69% said they will be reliant on Social Security benefits, with 47% saying they expect to be “very reliant.”
Having retirement savings in IRA and 401(k) accounts will bridge the gap, but there is one more piece of the retirement puzzle many financial advisors recommend: life insurance.
