Dedicated to Deposits: Deals, Data, and Discussion
Featured Savings Rates
Featured Accounts

IRAs Aren’t Attracting As Much New Savings As They Should

Wednesday, July 3, 2013 - 8:36 AM
New data confirm that Individual Retirement Accounts can be quite useful, but not in the way you might suspect. IRAs are usually touted as a great tax-deferred way to save for retirement. But, because of the extremely low limits on how much money can be put into IRAs each year, we don't actually deposit much in them.

Only 26% of Roth IRA owners and 6% of traditional IRA owners contributed anything to their accounts in 2011, according to the Employee Benefit Research Institute (EBRI).

IRAs aren't attracting as much savings as they should |
ShorebreakShorebreak2,670 posts since
Apr 6, 2010
Rep Points: 14,474
1. Wednesday, July 3, 2013 - 9:02 AM
I think if they were to do a more concise research on the years more people put money into IRAs it would be the generation who were fortunate to get higher interest rates like those in my group.  Others who followed our generation may be facing job lost and not enough money to save or feeling it isn't worth it to save at these appalling interest rates.  I have our IRAs which have CDs maturing soon and I will probably have to roll them over to another bank to even get 1% interest for less than 10 years!   This country is giving savers no incentive to save any longer.  Who would have thought.
paoli2paoli21,398 posts since
Aug 10, 2011
Rep Points: 6,127
2. Wednesday, July 3, 2013 - 1:07 PM
In March of 1983 I opened an IRA share certificate with a credit union. As part of the information package a chart was provided with projected earnings. It also contained the following statement.

"Assume the account will earn 12 percent per annum, and that earnings will be compounded quarterly. Remember, these are only projections."

Yes, I "remember" well.  Assume nothing.
ShorebreakShorebreak2,670 posts since
Apr 6, 2010
Rep Points: 14,474