Disappearing Benefits Forcing Employees to Be Self-Reliant

by KYW's Salil Gutt

One aspect of family finances has by now been imprinted on our minds. No matter where you work, you cannot rely on your employer to fund pension and health care benefits for the rest of your life. Human resource professionals expect this trend to spread to other industries, even municipalities and government.

The message is loud and clear. Rich benefits today cannot be sustained. You have to fund these yourself in part or in total.

There is no downside to starting on such a program of self reliance. There are two things you can do this year.:

First, boost your contribution to your employer's 401k or similar plan compared to what you were doing last year. Note, there are special extra catch up contributions permitted for employees over age 50 in every plan.

And. Start setting up a slush fund for future medical costs.  The numbers to fully fund medical out of pocket costs for retirees are daunting. Depending on life expectancy, out of pocket medical costs for a 65-year-old could range from $200,000 to $340,000 so take the first step today.