By Life Quotes, Inc. Staff

Planning for retirement has become increasingly difficult, as new reports indicate that couples retiring this year will need at least $250,000 to cover their health care expenses alone after they leave the workforce.

Difficult economic conditions have also made it more challenging for workers to invest funds in their pension plans, according to a report by Miami University professors Kathryn Easterday and Tim Eaton. The report points to the central role that many pension plans play in one’s retirement savings. Those working in the public sector may have access to 403(b) plans, while private-sector employees can put their funds in a 401(k).

Before the recession, it was common for employers to match their employee’s investments in the defined contribution investment plans. But lost revenue and shrinking budgets have caused many companies to cut back on these practices. Underfunding has also cut into the amount of money available to workers after their retirement.

“The current economic downturn and the granting of temporary relief for companies to meet the act’s requirements may, however, create a grave threat to the adequacy of corporate pension funding,” the report states.

The authors of the report call for careful reform in this area of pension funding, which can have significant and long-term effects on a person’s finances. Other opportunities for long-term investments include whole-life insurance and annuities.

This article was originally published by Life Quotes, Inc.