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4 Reasons Gen X Will Struggle in Retirement
Tweet Share on Facebook May 16, 2013 CommentMembers of Generation X are on track to replace a median of just half of their current salary in retirement. That’s a far smaller proportion of income than early baby boomers (82 percent) and depression babies (86 percent) have to finance their retirement years, and significantly behind the median of 99 percent of pre-retirement income war babies are now enjoying, according to a new Pew Charitable Trusts report. Here’s why Generation X is expected to be worse off in retirement than the baby boomers:
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Social Security on Your Smartphone
Tweet Share on Facebook May 10, 2013 CommentThe Social Security Administration launched a website specifically for smartphone users this week. People who visit SocialSecurity.gov via smartphone, including Android, Blackberry, iPhone and Windows devices, will be automatically redirected to the agency’s new mobile-friendly site.
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5 Ways to Get Great Retirement Benefits
Tweet Share on Facebook May 3, 2013 CommentOne of the best ways to improve your retirement finances is to get your employer to chip in via a pension or 401(k). But not all employers are willing to do this. Only 65 percent of private-sector workers are offered retirement benefits by their employer, according to a recent Bureau of Labor Statistics analysis of March 2012 National Compensation Survey data. However, some specific types of jobs and employers are more likely than others to provide retirement benefits. Here’s how to boost your chances of getting a retirement plan from your employer:
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What Gen X Doesn’t Know About Social Security
Tweet Share on Facebook April 26, 2013 CommentMembers of Generation X, those born between 1965 and 1976, are planning to collect Social Security at an average age of 65, according to a recent survey. But that could be a mistake. Gen Xers won’t qualify for the full Social Security payments they have earned until age 67. Those who sign up for Social Security at age 65 will get permanently lower payments for the rest of their lives.
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How Obama’s Budget Impacts Retirement Savers
Tweet Share on Facebook April 10, 2013 CommentPresident Obama’s 2014 budget proposal includes provisions that will significantly change Social Security, Medicare and retirement accounts. Here’s a look at the retirement changes Obama is suggesting:
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7 Obstacles to Rolling an Old 401(k) into a New One
Tweet Share on Facebook April 5, 2013 CommentWhen you leave a job, you have four options for your 401(k) plan balance: leave the money in your old 401(k) plan, move it to your new employer’s 401(k) plan, roll it over to an IRA, or cash out the 401(k) balance. The last option will trigger income tax, and if you are under age 55 when you leave the job, an early withdrawal penalty. However, a recent U.S. Government Accountability Office report found that many workers are discouraged from both leaving money in the old 401(k) plan and rolling it over into their new employer’s 401(k) plan. Many departing employees are also aggressively marketed IRAs, and actively persuaded to leave the 401(k) system.
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First IRA Distributions Due by April 1
Tweet Share on Facebook March 28, 2013 CommentDistributions from traditional 401(k)s and IRAs become required beginning shortly after you turn age 70½, and you must pay income tax on each withdrawal. The penalty for failing to take out the correct amount by the deadline is a stiff 50 percent excise tax on the amount that should have been withdrawn. Distributions are generally due by December 31 each year, but there are special rules that apply to your very first required minimum distribution.
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10 Reasons to Worry About Your Retirement
Tweet Share on Facebook March 19, 2013 CommentAmericans are feeling increasingly pessimistic—or some might say realistic—about their ability to retire well. Nearly half (49 percent) of workers say they doubt their ability to afford a comfortable retirement, according to a new Employee Benefit Research Institute survey of 1,003 workers age 25 and older and 251 retirees. And 28 percent of employees say they feel “not at all confident” about their retirement prospects, the highest level ever recorded by the 23-year-old annual survey. Here’s why workers feel uneasy about their retirement years:
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Why IRAs Hold More Money Than 401(k)s
Tweet Share on Facebook March 12, 2013 CommentWorkers can contribute up to $17,500 to a 401(k) in 2013, which jumps to $23,000 if you are age 50 or older. That’s over three times more than the $5,500 (or $6,500 at age 50 or older) that workers can contribute to IRAs. And yet workers have much more money invested in IRAs. Investors collectively held $4.87 trillion in IRA accounts in 2011, compared to $3.88 trillion in private-sector defined contribution plans like 401(k)s, according to Federal Reserve data. Here’s a look at why IRAs collectively hold more cash than 401(k) plans:
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10 Things to Do in Retirement
Tweet Share on Facebook March 1, 2013 CommentSaving enough money to pay for retirement is important, but it’s not the only thing you need to do to prepare. When you no longer go to work each day, you will have hours of free time you need to fill. While relaxation might be enough for the first few weeks of retirement, many workers want something productive or exciting to fill their retirement years. A recent HSBC survey asked current employees what they aspire to do in retirement. Here are the activities U.S. workers have planned for their retirement years:
