In the past, the retirement funds of many seniors often depended on retirement plans as the main source of income, with Social Security benefits and savings from other sources as supplemental revenue streams. These sources of income are often called the "three-legged stool" of retirement finances, although this term may be obsolete due to the freezing or cancellation of some employer-sponsored retirement plans, as well as the underfunding of Social Security. Add the financial strain that many seniors experience to this, and you can see that these income sources are no longer dependable.
Currently, an increasing number of retirement plans are becoming self-directed, resulting in the further weakening of the worker's ability to save enough money to retire on. What are workers and near-retirees to do?
Workers who participate in retirement plans that are self-directed or managed will have to cut off their reliance on Social Security benefits as a considerable source of income with which to build their nest eggs. If you're an employee who wants to strengthen your financial capabilities for retirement, you'll have to realize that there are many obstacles in your path to building a stable nest egg, such as limited solutions, the inadequacy of conventional resources, and the obstacles you'll encounter within the retirement system itself.
Workers who merely want to ensure that they'll outlive their nest eggs and live comfortably in retirement can overcome these said barriers to building their retirement funds. You'll have to examine your finances (including what your retirement plan will pay out), create a personal investment portfolio, and manage it according to market conditions and your financial goals and capabilities. Seek the help of a professional advisor who can create a comprehensive financial plan and tell you what you need to do to reach your retirement income goals without taking on too much unnecessary risk.