Retirement

What is an IRA?
An IRA is an Individual Retirement Account. It is a personal savings plan that provides income tax advantages to indivduals saving money for retirement purposes.

Then what is a 401K?
A retirement savings plan that allows a worker to save for retirement and have the savings invested while deferring current income taxes on the saved money and earnings until withdrawal.

Ok I heard of Social Security many times...but what exactly is it?
Basically it is a social welfare program in the US which includes old-age and survivors insurance and some unemployment insurance and old-age assistance. It helps pretty much pay for a lot of stuff.

Why is it a big issue?
Lately it has been facing many budget deficits which will hurt the future of so many people.
We might not care about it now, but we will when we reach retirement. We possibly might not have enough money to help the elderly. Personal savings might not be enough for retirement, so social security is basically like a backup plan. If the backup plan is gone, you're in trouble.

If we dont look the retirement funds now, we will procrastinate and it will bring severe consequences to the economy of the US. There will be no assistance or help from the government (maybe) and it will harder to live life happily in a retirement.