Showing posts with label pre-retiree. Show all posts
Showing posts with label pre-retiree. Show all posts

Retirement Related News for 12/04/2015

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From The Transamerica Center: The Current State of Retirement: Pre-Retiree Expectations and Retiree Realities

This new study compares and contrasts the retirement outlook of age 50+ workers with the actual experiences of retirees. In TCRS' first-ever retiree survey, it finds that pre-retirees' ideas of retirement are different than the actual experiences of retirees. While many age 50+ workers expect to work beyond age 65 and/or work in retirement, those who are currently retired entered retirement at a median age of 62. Many retirees retired before they had planned to, often due to circumstances beyond their control.

View the study.

From CNN:: How much income will I need in retirement?

A widely accepted tenet of retirement planning is that you need to replace just 70% to 80% of your pre-retirement income to maintain your standard of living after you call it a career. And on the face of it, this rule of thumb seems to make sense. After all, since you'll no longer have to funnel money into 401(k)s and other retirement savings accounts and many of your expenses are likely to drop after you retire, you should be able to live as well, if not better, on considerably less income than you earned during your career.

But while "replacement ratios" may be useful for gauging how much you need to save each year to build an adequate nest egg when retirement is decades away, they're less helpful once you're within 10 or so years of retiring. At that point, you really want to base your planning on something more concrete -- namely, how much dough you'll actually have to come up with to cover your expenses and maintain an acceptable post-career lifestyle.

From The Wallstreet Journal: Why Recent Social Security Changes Make Sense

It took a few years, but Congress has eliminated the remaining loopholes that allowed people to game the Social Security system.

In 2009, we published three briefs under the title “Strange But True,” that described Social Security claiming strategies that allowed individuals to get more benefits. The idea was to show how they worked, who was most likely to benefit, and how much they could cost. Our hope was that publicity would compel Congress to close down these options.

The most egregious claiming strategy was what we called “Free Loan from Social Security.” The strategy allowed individuals to claim Social Security at age 62, invest those funds, and then reclaim higher benefits at age 70 simply by paying back what they had received to date interest free. In essence, the claimant received an interest-free loan from Social Security. The $6-$11 billion potential annual gain, concentrated among higher-income households, equaled a comparable cost to Social Security. In late 2010, the Social Security Administration (SSA) changed its regulations so that individuals had only one year to change their mind. In other words, score one for the good guys.

From Forbes: 7 Tips To Think Differently About Your Money And Become An Everyday Financial Superstar

One of my favorite types of articles to write is what I call “the financial feat story.”

As collected in the new Forbes e-book, “Money Hacks: Forbes Stories Of Superstar Savers,” which I cowrote with reporter Lauren Gensler, these are tales of people who took on and accomplished impressive, if not seemingly impossible, financial challenges.

From PLANSPONSOR: Retirees Share Realities with Younger Generations

In research from the Transamerica Center for Retirement Studies, retirees shared actionable insights about what they would have done differently in preparing themselves for retirement.
Reflecting on their working years, many retirees say they:
  • Wish that they would have saved more on a consistent basis (76%);
  • Wish they had been more knowledgeable about retirement saving and investing (68%);
  • Would have liked to have received more information and advice from their employers about how to achieve their retirement goals (53%);
  • Waited too long to concern themselves with saving and investing for retirement (48%); and
  • Should have relied more on outside experts to monitor and manage their retirement savings (41%).
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