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6 Events That Could Trigger Your Retirement
Tweet Share on Facebook October 29, 2010 Comment (1)It’s difficult to determine exactly when you are ready to leave behind your day job forever. Sometimes there is a catalyst that causes workers to begin contemplating retirement. A recent Harris Interactive survey of 2,007 adults between ages 40 and 75 commissioned by Ameriprise Financial asked them to name the one event that caused them to seriously think about when, how, and where to retire. Here are the reasons most people take the plunge into retirement.
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5 Ways Retirement Tax Breaks Will Change in 2011
Tweet Share on Facebook October 28, 2010 Comment (1)401(k) contribution limits will remain the same next year, the IRS announced today. Employees who participate in 401(k), 403(b), and 457(b) plans and the federal government’s Thrift Savings Plan can save up to $16,500 in these accounts in 2011. The catch-up contribution limit for those age 50 and over will remain $5,500, as it has been since 2009. Here’s a look at how retirement savings tax breaks will change next year.
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Pension Insurance Limits Won’t Grow in 2011
Tweet Share on Facebook October 26, 2010 CommentThe maximum insurance benefit for participants in traditional pension plans that terminate in 2011 will be $54,000 per year for those who retire at age 65, the government agency that insures private sector pensions announced last week. The maximum insured amount, which typically increases each year to keep up with inflation, remains unchanged since 2009. Benefit maximums are tied to Social Security payments, which also have not increased since 2009.
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3 Proposals That Cut Social Security Payments
Tweet Share on Facebook October 22, 2010 Comment (5)The chief actuary of the Social Security Administration released a report this week analyzing several proposals that aim to change how Social Security benefits are calculated. Almost all the fixes studied will result in smaller benefit checks for most seniors, especially for high income and younger retirees. Here’s a look at how three of the proposed changes could impact your Social Security payout.
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Older Voters Want Social Security Guarantees
Tweet Share on Facebook October 20, 2010 CommentMany political candidates are pledging their support for Social Security as the midterm elections approach. Some 136 members of Congress signed a letter sent to President Obama on Friday opposing any cuts to Social Security, including raising the retirement age and any form of privatization. Speaker Nancy Pelosi also committed to bringing a bill to a vote in November that promises to give an extra $250 payment to about 54 million Social Security recipients.
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Fewer Employers Offer Retirement Plans
Tweet Share on Facebook October 19, 2010 CommentIf you have access to a retirement plan at work, consider yourself among the more fortunate half of the population. Just 49 percent of Americans worked for an employer that sponsored a retirement plan in 2009, according to a new Employee Benefit Research Institute analysis of Census Bureau data. And only 40 percent of workers participated in a retirement plan in 2009, down from a high of 44 percent in 2000.
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How Fee Disclosure Will Impact Your 401(k)
Tweet Share on Facebook October 18, 2010 CommentIn a little over a year 401(k) participants will know exactly how much they are being charged to invest in their 401(k) plan. The Labor Department issued regulations last week that will require 401(k) plan sponsors to inform employees of all fees deducted from their retirement account by Jan. 1, 2012. Here’s a look at how the new rules will impact the 72 million Americans enrolled in 401(k) plans.
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Why Social Security Checks Won’t Rise in 2011
Tweet Share on Facebook October 15, 2010 Comment (1)For the second year in a row Social Security recipients will not receive a cost-of-living increase in 2011, the Social Security Administration announced today. This year was the first without a boost in Social Security payments since automatic increases for inflation began in 1975. Here’s a look at why more than 58 million retirees will receive checks for the same amount next year that they do today.
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Workers Not Saving Enough to Get 401(k) Match
Tweet Share on Facebook October 14, 2010 CommentThe majority of Americans are not saving enough in their 401(k) plan to be able to retire comfortably. Almost three quarters of current workers are not on track to replace 70 percent of their pre-retirement income at age 65 using their 401(k) plan and Social Security if the markets perform typically, according to a recent Financial Engines report. The analysis of over 2.8 million 401(k) participants at 272 employers found that the typical 401(k) participant is projected to be able to replace only 55 percent of his or her pre-retirement income.
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10 Reasons Baby Boomers are Delaying Retirement
Tweet Share on Facebook October 13, 2010 Comment (2)Many baby boomers are reconsidering when they will be financially able to retire. Nearly half (46 percent) of workers age 50 and older now plan to retire later than they did two years ago, according to a Towers Watson survey of 3,099 full-time employees in the private sector. And most baby boomers don’t think simply delaying retirement a year or two will be enough to significantly improve their retirement finances. Many of the survey respondents plan to work between 3 and 5 years longer (28 percent) and even over 5 years (31 percent) later than they initially planned to. Here are the reasons older employees say they are now aiming to work longer.
