Are You Using the Wrong Accounts to Save for Retirement?
If you want to be prepared for retirement, you need savings to supplement your Social Security benefits. Social Security is designed to replace only about 40% of pre-retirement income, when you'll need at least 70% to 80% to maintain your quality of living. What you set aside yourself makes up the difference.
Unfortunately, most people aren't putting enough money toward retirement needs. And even those who do set money aside often put their money in the wrong type of accounts. In fact, a recent survey from Schwab revealed that, outside of a 401(k), a regular bank savings account is the most popular way to save for retirement.
While using a 401(k) is a good start to save for retirement, for most people, there are better options than a bank savings account for putting extra money to work.
Source Fool.com
