My wife has a small accumulation in a 401K plan at her current job (she has only worked there a couple of years). She just got one of those little "personal" data sheets showing how she has done so far.
On the front page they did some summary of her account, showing the balance to be $9,893. Then they had a box that was titled "What might my monthly income be at retirement" and they showed "Your current account converted to income at retirement may be: $175.88/month (after tax)"
WHAT What planet are they on?? Geez that is only a 21.3% withdrawal rate. I guess they only expect people to live 5 years after retirement.
Now I know this is absurd, but what about the average employee that looks at this and says, "Hey, not bad"
I'm thinking of calling them on it but I really do have better things to do with my time. How could they put this kinds of nonsense in their report??
On the front page they did some summary of her account, showing the balance to be $9,893. Then they had a box that was titled "What might my monthly income be at retirement" and they showed "Your current account converted to income at retirement may be: $175.88/month (after tax)"
WHAT What planet are they on?? Geez that is only a 21.3% withdrawal rate. I guess they only expect people to live 5 years after retirement.
Now I know this is absurd, but what about the average employee that looks at this and says, "Hey, not bad"
I'm thinking of calling them on it but I really do have better things to do with my time. How could they put this kinds of nonsense in their report??