nally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are availa

In years gone by, when someone retired from a large company they didn’t have to worry about losing their retirement benefits. That’s no longer the case. Being faced with ever increasing competition, many large companies are changing their benefit programs. If this hasn’t affected you yet, it soon will. Read on to find out how.

Did you know that it costs General Motors over $1,000 per vehicle just to cover retiree benefits? A few years ago, a steel company only had 20,000 current employees but had over 70,000 former employees receiving retirement benefits. To survive, companies have to cut costs everywhere they can, including cutting or eliminating some retiree benefits.

Retirees are understandably nervous. But not all of your company benefits are at risk. For those retired, you shouldn’t be too concerned about losing your pension. A pension is the retirement benefit that is designed to pay the retiree a set amount of money each month for the rest of their life. Should your old employer go belly up there is little chance your pension will be affected. In these cases, the Pension Benefit Guaranty Corp. takes over the pension payments.

You also aren’t in danger of losing your 401(k). Even if the company declares bankruptcy the money in your 401(k) is safe—unless you had it all invested in company stock!

For those still working, you need to know that many companies are now terminating their pension programs for current employees, or requiring their employees work much longer to qualify. That means that more often, it is up to the employee to fund their own retirement out of their paycheck. Few are ready for this.

To put this in perspective, let’s say you are 40-years old and have finally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are availab

few years ago, a steel company only had 20,000 current employees but had over 70,000 former employees receiving retirement benefits. To survive, companies have to cut costs everywhere they can, including cutting or eliminating some retiree benefits.

Retirees are understandably nervous. But not all of your company benefits are at risk. For those retired, you shouldn’t be too concerned about losing your pension. A pension is the retirement benefit that is designed to pay the retiree a set amount of money each month for the rest of their life. Should your old employer go belly up there is little chance your pension will be affected. In these cases, the Pension Benefit Guaranty Corp. takes over the pension payments.

You also aren’t in danger of losing your 401(k). Even if the company declares bankruptcy the money in your 401(k) is safe—unless you had it all invested in company stock!

For those still working, you need to know that many companies are now terminating their pension programs for current employees, or requiring their employees work much longer to qualify. That means that more often, it is up to the employee to fund their own retirement out of their paycheck. Few are ready for this.

To put this in perspective, let’s say you are 40-years old and have finally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are availa

the retirement benefit that is designed to pay the retiree a set amount of money each month for the rest of their life. Should your old employer go belly up there is little chance your pension will be affected. In these cases, the Pension Benefit Guaranty Corp. takes over the pension payments.

You also aren’t in danger of losing your 401(k). Even if the company declares bankruptcy the money in your 401(k) is safe—unless you had it all invested in company stock!

For those still working, you need to know that many companies are now terminating their pension programs for current employees, or requiring their employees work much longer to qualify. That means that more often, it is up to the employee to fund their own retirement out of their paycheck. Few are ready for this.

To put this in perspective, let’s say you are 40-years old and have finally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are availa

ad it all invested in company stock!

For those still working, you need to know that many companies are now terminating their pension programs for current employees, or requiring their employees work much longer to qualify. That means that more often, it is up to the employee to fund their own retirement out of their paycheck. Few are ready for this.

To put this in perspective, let’s say you are 40-years old and have finally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are availa

nally gotten serious about saving for retirement. You want enough so you can live off the interest--$50,000 per year. In order to retire at age 65, you will have to save over $20,000 per year!

The benefits most likely to be affected for retirees and current workers alike are medical benefits. Companies across the board, including large ones like General Motors, are reducing or eliminating the medical benefits that are available to retirees. Current workers are being expected to shoulder more and more of the health care burden. Retired or not, you will be faced with higher co-pays, larger premiums and reduced coverage. As a result, you must be prepared to pay several hundred dollars more each month for this coverage.

For instance, I have clients who retired from a major chemical company. A few years ago they only had to pay $60-$70 a month for that coverage. Now it is costing them several hundred dollars a month. Fortunately, they have the money to pay it. Many don’t.

So what should you do? Retirees relying on company medical benefits need to be prepared for the real possibility that they will be reduced or disappear. This may change your financial situation so you need to keep it in mind when choosing investments. Avoid those with long time commitments and penalties to access your money.

Non-retirees need to realize that now, more than ever, it is their responsibility to provide for their retirement. Live below your means and set aside all you can.