David Lerner Associates: The DIY Retirement Plan

David Lerner Associates: The DIY Retirement Plan

Core Facts

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Part of the American Dream was working hard for 40 years and retiring with a comfortable company pension at age 65. For most of today’s young adults, that scenario is no longer an option. A recent survey of corporate pensions revealed that just 28% of the plans they surveyed still remain open, and 25% of workers with an active pension are likely to see the plan close or freeze at some point in the future. 

“Company pensions used to be the foundation of a retirement plan,” said Martin Walcoe, Executive VP at David Lerner Associates. “Millennials entering the workforce today, it’s a DIY scenario – they have to plan their own retirement fund.”

According to the U.S. Department of Labor, fewer than half of Americans have calculated how much they need to save for retirement, and the average American spends roughly 20 years in retirement. So it’s essential to look ahead, and put your own DIY retirement plan in place.

  • Determine your retirement needs 

This should not be a wild guess. To maintain your standard of living when you retire, you will need at least 70% of your current income. And depending on how far away your retirement date is, you will have to calculate the cost of living and inflation increases over that time. Use this retirement calculator to help you figure out what you need.

  • Open an Individual Retirement Account (IRA)

There are two options – a traditional IRA or a Roth IRA. Which one you choose will have tax implications, so work with a retirement specialist, and figure out what’s best for you. One easy way to get started is with www.myra.gov  - a retirement plan specifically created for people who don’t have a plan at work. 

  • Social Security

Find out what your estimated benefits will be when you retire. If you have paid into Social Security all your working life, it should pay about 40% of your income just before you retire. However, the Social Security Trustee’s annual report states that they expect the fund will not be able to pay full benefits by the year 2033. 

Since the Social Security and corporate pensions are no longer the safety net they used to be, the only option is to create a DIY retirement plan. 



Material contained in this article is provided for information purposes only and is not intended to be used in connection with the evaluation of any investments offered by David Lerner Associates, Inc. This material does not constitute an offer or recommendation to buy or sell securities and should not be considered in connection with the purchase or sale of securities. 

Certain investments are offered by prospectus. Investors should read the prospectuses carefully and consider the investment objectives, risks, charges, expenses and other information before investing.  

To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a taxpayer for the purpose of avoiding penalties that may be imposed by law. 

Each taxpayer should seek independent advice from a tax professional based on his or her individual circumstances.

These materials are provided for general information and educational purposes based upon publicly available information from sources believed to be reliable-- we cannot assure the accuracy or completeness of these materials. The information in these materials may change at any time and without notice.

David Lerner Associates does not provide tax or legal advice. The information presented here is not specific to any individual's personal circumstances. Member FINRA & SIPC.



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Founded in 1976, David Lerner Associates is a privately-held broker/dealer with headquarters in Syosset, New York and branch offices in Westport, CT; Boca Raton, FL; Teaneck and Princeton, NJ; and White Plains, NY. For more information contact David Lerner Associates Call 516-921-4200 Visit our website: www.davidlerner.com

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Jake Mendlinger
Account Manager
516.829.8374 X 232

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