Don't count on your pension

Don't count on your pension
IBM's plan to freeze pension benefits and put workers into a 401(k) plan is seen by many retirement experts as pivotal.
BY LAURA SMITHERMAN AND MEREDITH COHN
The Baltimore Sun

As companies continue to drop pensions that have afforded generations of workers a comfortable retirement, a chorus of financial experts warns that workers must learn to save for themselves.

But like admonitions to exercise more and eat less, many workers aren't heeding the advice. One recent survey revealed that one-fifth of Americans think their best shot at amassing savings of several hundred thousand dollars is to win the lottery. And that's far short of the $1 million that some financial planners say baby boomers will need for a nest egg.

"You can stop anyone and ask them if they should be saving more for retirement, and none will say no," said Christine Fahlund, senior financial planner with T. Rowe Price Group Inc. "We've heard it and heard it and heard it. It's our own fault if we ignore it. We have to live with the consequences."

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