In the past year, only 15% of Americans spent two hours or more in planning for an IRA investment, according to TIAA-CREF’s annual survey on Individual Retirement Accounts (IRAs). Many often spend more time than that to research a one-time purchase or choose a place for a special dinner.
While most of us know that an IRA is a tax-deferred retirement savings plan, only 17% of us actually contribute. Why don’t more save in an IRA?
Roughly 35% of those polled said they don’t understand what an IRA is, and even more Millennials (about 47%) don’t know. About one third said they don’t contribute because they don’t know enough about the account. Another third of those not using an IRA say they have a retirement plan through work and they don’t feel they need both.
Yet, the average American will come up short when it comes to retirement savings and could use both plans. Will you?