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How Your 401(k) Compares to Your Peers
Tweet Share on Facebook December 22, 2008 Comment (1)Have you ever wondered how the size of your nest egg compares to what your friends or coworkers have saved for retirement? U.S. News recently updated a tool that gives you a sneak peek into how much cash Americans have stashed away in their 401(k)s and the investments they have chosen, by age group.
The numbers come from an analysis of 21.8 million participants in 56,232 employer-sponsored 401(k) plans done by the Employee Benefit Research Institute and the Investment Company Institute, as of the end of 2007.
Most 401(k) balances have declined significantly since then. Tell us, how does your retirement stash now compare to last year's national averages?
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Treasury: Seniors Must Take Retirement Account Withdrawals This Year
Tweet Share on Facebook December 19, 2008 Comment (6)Retirees older than 70 ½ will not be required to take withdrawals from their retirement accounts in 2009. But the Treasury Department and Internal Revenue Service decided seniors will not get the same tax relief this year.
Those over age 70 ½ must take a required minimum distribution from their IRAs, 401(k)s, and 403(b)s by December 31, or pay a tax penalty of 50 percent of that amount plus income tax. Seniors who turn 70 ½ this year have until April 1 to make the required withdrawal.
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FedEx Eliminates 401(k) Match for Employees
Tweet Share on Facebook December 18, 2008 Comment (8)FedEx today joined Motorola, Kodak, and General Motors in suspending its 401(k) match for employees. The employer contributions will stop flowing into employee retirement accounts on February 1 for a minimum of one year.
“We hope to reinstate the company match in 2010, depending upon business and global economic conditions,” writes FedEx CEO Frederick Smith on his company blog.
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Retirement Security? Bah, Humbug
Tweet Share on Facebook December 18, 2008 Comment (1)Some researchers think the U.S. can no longer afford to provide the type of retirement security many middle income Americans enjoyed during the post-World War II decades. Beth Almeida, executive director of the National Institute on Retirement Security, disagrees. She writes on her blog:
“Our nation can afford everything we enjoyed in 1950 and more. Our nation’s gross domestic product is roughly six times larger than it was in 1950 and household incomes have grown by a similar amount. Even in the midst of our current economic struggles, ours is still the richest society in all of human history. But like Mr. Scrooge, it is the priorities we set, more so than the absolute level of our financial resources, that are the source of most of our troubles.”
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5 Reasons to Be Hopeful About Retirement
Tweet Share on Facebook December 18, 2008 Comment (6)Retirement may seem like a distant dream to many people. Americans have lost nearly $2 trillion in their retirement accounts this year. And a turbulent stock market coupled with falling home values is creating high anxiety among baby boomers approaching retirement age. But plans for a financially secure retirement don't need to be deferred indefinitely. Here are five reasons to be optimistic about your retirement prospects.
Social Security. Many pensions don't provide higher checks when the cost-of-living increases. So, your spending power is gradually eroded over time. But Social Security checks rise every year. The increase is tied to the consumer price index, a measure of the prices paid for goods and services. Benefit checks will increase 5.8 percent next year, the largest cost-of-living increase in more than 25 years. The estimated average check next year will be $1,153 monthly, up $63 from last year. Delaying signing up for Social Security until age 70 produces even higher payouts.
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Motorola Slashes Retirement Benefits for Employees
Tweet Share on Facebook December 17, 2008 Comment (5)Motorola, Inc. announced today that it will reduce retirement benefits to cut costs. The cell phone maker will permanently freeze its U.S. pension plans on March 1. Vested benefits accrued by employees and retirees will remain intact, but future benefit accruals will be eliminated.
The company will also temporarily suspend company matching contributions to the 401(k) plan beginning on January 1. Employees may continue to contribute to the 401(k) plan, but will not receive matching contributions from Motorola.
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Dollar Thrifty Automotive Group Reinstates 401(k) Match for Employees
Tweet Share on Facebook December 16, 2008 CommentDollar Thrifty Automotive Group, Inc. (DTG) will reinstate its 401(k) company match for employees in 2009. The rental car company will match employee contributions dollar-for-dollar up to 2 percent of pay beginning in January. The benefit was suspended earlier this year.
“While many companies are faced with economic uncertainty - and our own company certainly continues to see its share of headwinds - it is tough for companies and employees alike,” says Scott Thompson, president and CEO, in a statement. “It is important that employees be able to focus on their own future and that of their families. That's why the DTG board, at management's request, unanimously voted to reinstate the 401(k) match benefit for our employees."
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At What Age Does Age Discrimination Begin?
Tweet Share on Facebook December 16, 2008 Comment (3)Work experience is a valuable asset in finding a new job - up until a certain point. Then many employees find that age rapidly becomes a liability.
Age discrimination has been illegal in the U.S. since 1967. But that doesn’t mean it doesn’t exist in a more subtle form. About 80 percent of executives believe there is moderate or severe age discrimination in the workplace, according to a recent survey of 900 senior level executives age 40 or older by networking and career coaching firm Gray Hair Management. And 73 percent of the executives believe they have lost a job opportunity because of their age.
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Clint Eastwood’s Decision Not to Retire Makes My Day
Tweet Share on Facebook December 16, 2008 Comment (5)In his latest movie, Gran Torino, Clint Eastwood plays a retired Detroit autoworker. But off camera, Eastwood, 78, has no plans to slow down. The tough guy plans to keep acting his age if the parts are available. Eastwood told the New York Times:
“It’s ridiculous when you won’t play your own age. You know when you’re young and you see a play in high school, and the guys all have gray in their hair and they’re trying to be old men and they have no idea what that’s like? It’s just that stupid the other way around."
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Air Bags for the Elderly
Tweet Share on Facebook December 15, 2008 CommentFalls are a significant source of injuries for elderly people. A Tokyo-based company, Prop, thinks it knows how to prevent some of these traumas: a wearable set of air bags. The New York Times reports:
“The device looks something like a fishing vest with a fanny pack attached. When its built-in motion sensors detect a fall, it inflates two air bags — one around the hips, the other around the neck — in a 10th of a second. Instant Michelin Man. It retails in Japan for approximately $1,400.”
Check out this BBC video of the device.
