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15 Retirement Gems From Our Readers
Tweet Share on Facebook September 29, 2009 Comment (1)For some retirees, a seaside town in Florida is an idyllic retirement spot. But others prefer the excitement of the ski slopes, the beauty of the wine country, or the art and culture that come with living in a big city. This year, U.S. News invited readers to recommend their personal retirement havens. Hundreds of retirees and baby boomers contemplating retirement told us about leisure activities like golf, festivals, and the cost of living in their favorite towns:
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3 Ways Cash Leaks Out of Your 401(k)
Tweet Share on Facebook September 28, 2009 Comment (2)While many Americans have valid reasons for raiding their 401(k) during their working years, these early withdrawals can have dire consequences in retirement. Fees and penalties for early distributions can further eat away at your retirement account balance. About 15 percent of 401(k) participants spend some of their nest egg before they’re ready to leave the workforce, according to new Government Accountability Office report. The study identifies three major ways money leaks out of 401(k)s before retirement and how much each one affects your financial security.
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Survey: Strong Bipartisan Support for Automatic IRA
Tweet Share on Facebook September 25, 2009 Comment (2)The automatic IRA, as proposed in President Obama’s 2010 government budget, would require most employers that don’t already offer a retirement plan to enroll their workers in a direct-deposit IRA. A new Hart Research Associates and AARP survey found that 79 percent of adults are in favor of requiring employers with 10 or more workers that have been in business at least two years to offer a retirement plan. Employees would be automatically enrolled, but also given an opportunity to opt out.
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House Votes to Prevent Medicare Premium Increases
Tweet Share on Facebook September 25, 2009 Comment (1)A bill passed by the house yesterday would prevent Medicare Part B medical insurance premiums from increasing next year. The legislation, which had 45 cosponsors, passed the house by a vote of 406 to 18.
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Parents Prioritize Retirement Savings Over a College Fund
Tweet Share on Facebook September 24, 2009 Comment (1)Parents of teenagers have two big expenses looming in the near future: college tuition bills for their children and financing their own retirement. When there’s not enough money to save for both, most parents choose retirement. A recent Sallie Mae and Gallup study found that, when parents were asked what they were saving the most for right now, retirement savings ranked first (27 percent), followed by children’s college costs (14 percent) and an emergency or rainy day fund (14 percent).
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Survey: No Retirement in Sight for Low-Income Seniors
Tweet Share on Facebook September 22, 2009 Comment (2)Retirement is a very distant dream for many low-income older workers. A new survey of unemployed seniors age 55 and older with limited financial resources found that 92 percent plan to work for at least the next five years because they need the money and/or want to stay active. For those who do have a retirement timeline, the average target retirement age is 72.
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What Keeps Retirement Savers Awake at Night
Tweet Share on Facebook September 21, 2009 Comment (3)Employees and retirees both say they’re losing sleep due to retirement worries. Inflation is the concern that keeps the most retirees (37 percent) from getting their rest. But apprehension about simply being able to afford basic necessities is disturbing the slumber of 44 percent of workers and 30 percent of retirees, according to a recent Harris Interactive and Principal Financial Group online survey of 1147 small and mid-sized business employees and 558 retirees age 60 and over.
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Treasury’s Money Market Guarantee Program Ends
Tweet Share on Facebook September 18, 2009 Comment (1)The Treasury’s guarantee program for money market funds was allowed to expire today. The government insurance of investor assets in money market mutual funds was first established in September 2008 for a three-month period and later extended through September 18 of this year. The program was implemented shortly after the failure of Lehman Brothers when a large money market fund, the Reserve Primary Fund, announced that its net asset value had fallen below $1 per share, or broke the buck.
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College Professors Unsure About Retirement Prospects
Tweet Share on Facebook September 18, 2009 CommentEven college professors and researchers are worried about how best to finance their retirement years. Many academic employees expressed concern about choosing the best way to draw income from their savings to live on during retirement (67 percent), the possibility of outliving their savings (63 percent), and affording good healthcare in retirement (71 percent), according to a TIAA-CREF Institute survey of 1,002 higher education workers between the ages of 50 and 70 released yesterday.
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New Bills Aim to Boost Social Security Checks
Tweet Share on Facebook September 17, 2009 Comment (46)The Congressional Budget Office predicts that there will be no cost-of-living increases for Social Security beneficiaries in 2010 and 2011. The annual benefit boost is tied to the Consumer Price Index under current law. Two new bills were introduced this week proposing to give Social Security recipients a raise next year.
