Not all of the economy’s effects have been negative, however. Continued economic uncertainty has also motivated some Americans to take extra steps to better prepare for their future. Fifteen percent of people with an IRA say they are now contributing as much as possible for retirement.
“It’s not surprising that people’s continued skepticism about the economy is impacting retirement savings habits,” said
Schwab’s survey also highlights that a majority of Americans are confused about what IRAs are or how they work. Fifty-three percent of Americans surveyed are confused about at least some aspect of IRAs, and 35 percent ages 18-34 don’t even know what an IRA is. Among all respondents, the most confusing aspects of IRAs are the advantages of having both a 401(k) and an IRA (28%), IRA tax rules and implications (27%), the differences between different IRA types (25%) and how to open or choose investments in an IRA (23%).
To help people sort through some of the most common questions and points of confusion about IRAs,Schwab makes available additional IRA and retirement resources on Schwab.com:
- Schwab's IRA Center: Schwab’s IRA Center provides information on the various types of IRAs, tools and calculators to help people decide which IRA may be right for them, informational videos, and answers to frequently asked questions about IRAs.
- Retirement Consultation: Schwab clients have access to a complimentary retirement consultation with an investment professional covering an analysis of savings, income and expenses, personal retirement goals and milestones, and ways to generate income once in retirement.1
- IRA Analyzer: Schwab’s IRA Analyzer gives people the ability to research and select the retirement account that's right for them.
- Schwab Real Life Retirement™ Services: Schwab’s Real Life Retirement Services provides a realistic approach to retirement, offering insights into actionable ways to save for and manage retirement savings, guidance on products and services, and access to stories and tips from real people. Watch Schwab client, Michael T. from
Atlanta, Georgia, talk about how IRAs have helped shape his retirement.
For additional insights and considerations about IRAs, read the latest “Schwab Talk” blog post with
A Schwab IRA makes it easy to open a retirement account online in about 15 minutes. Schwab IRAs offer a number of advantages to investors, including no account service fees2, low minimum balance requirements, automatic deposits, and access to complimentary consultations to help people through the process of opening their account and matching their portfolio to their needs and risk profile. Schwab IRAs also provide access to a wide range of investment choices that make it easy to invest, including ETFs and mutual funds, as well as stocks, bonds, CDs and more. Schwab also offers a wide range of information and resources to help investors find the IRA type that’s right for them, available at www.schwab.com/OpenIRA or by calling 1-800-308-1479.
Schwab makes available complimentary 401(k)
With income restrictions for converting to a Roth IRA lifted as of
Schwab encourages investors to visit www.schwab.com/OpenIRA for a full list of resources, or call 1-800-308-1479 or visit a Schwab branch to take advantage of the remaining window for opening a retirement account prior to the
This information is for general information purposes only and is not intended as a substitute for specific individualized tax, legal or investment planning advice. Where specific advice is necessary or appropriate, Schwab recommends you consult with a qualified tax advisor, CPA, financial planner or investment manager.
*Changes to Roth IRA conversion income limit rules may not apply in all states. Certain states may impose penalties on conversions above the current income limits. Consult with a tax advisor for more information.
About the Survey
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1 The consultation is complimentary although the implementation of any recommendations made during the consultation may result in trade commissions or other fees, charges, or expenses.
2 There is no fee to open and maintain your account. Other charges may apply. See the Charles Schwab Pricing Guide for
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