Hey, Remember the IRA?

How many American families who were eligible to make direct IRA contributions in 2006 (the most recent data available) actually did so?
__ 100%
__ 85%
__ 50%
__ 25%
__ None of the above

The answer, according to a great article by J. Alex Tarquinio on today’s NYTimes.com, is…14%!

Can you believe that? Only 14% of eligible American families contributed directly to their IRAs. I think that’s insane. And don’t tell me the reason is because they’re contributing to their 401(k)s at work.

Because, according to the article, 57% of Americans 25 to 64 have NO RETIREMENT PLAN AT WORK.

So, what’s going on here? Do they think that Social Security will be their retirement plan? Will SS even be around when they retire?

Sure, deciding which IRA is right for you could be a little confusing, but it’s really not a good excuse for not putting at least something into your IRA. And not having the money after paying all of your bills can also be a reason. But if you can find a few dollars to buy a latte or a pack of cigarettes even once a week, you can afford to put something into your IRA.

So, what do you think is the reason why so few of us take advantage of IRAs? Give us your take.