Showing posts with label savings. Show all posts
Showing posts with label savings. Show all posts

Friday Top Five: Retirement Related News for 10/23/2015

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From Governor Nixon: Gov. Nixon takes action to keep FY2016 budget in balance following loss of one-time tobacco settlement funds

Gov. Jay Nixon today announced that, due to the recent court ruling relieving tobacco companies of their obligation to pay the State of Missouri $50 million under the Master Settlement Agreement, spending will need to be restricted in order to maintain a balanced budget.

“Based on the St. Louis Circuit Court’s decision, both my administration and members of the General Assembly counted on these funds being available when the Fiscal Year 2016 budget was passed,” Gov. Nixon said. “Now that this ruling has been overturned, this unexpected loss of funds must be accounted for through spending restrictions to keep the budget in balance and our AAA credit rating intact. In taking these necessary actions, we have made every effort to minimize the impact on vital services by reducing spending from new programs yet to get underway and funding increases that would grow the size of government.”

From Forbes: An Early Start Can Lead To An Early Win In Retirement Saving

I recently ran into a blog post on dealing with money for Millennials that’s gone viral: “If You Have Savings In Your 20s, You’re Doing Something Wrong.” The message: enjoy life now, spend your money and quit trying to save so much since life is a gamble and living by the numbers sucks! That idea kind of makes me go, “Hmmm, how can that be right?” so let’s talk about it.

I’m totally in agreement with the idea that saving shouldn’t be a gloomy, hated thing. Diets with food we hate eating end up in calorie binges we love! The same thing goes for your money. If you can’t enjoy the journey, you probably aren’t going to the destination.

But there’s a balance in here somewhere, and an undeniable fact. Starting saving during your 20’s beats saving later hands down, all over town! And you can gamble on yourself with all your dough, but having enough to quit working someday doesn’t have to be a gamble at all!

From BenefitsPro: IRS 2016 Cost-Of-Living Adjustments For Retirement Plan Contributions

The Internal Revenue Service released cost-of-living adjustments for retirement plan contributions today.

As expected, contribution caps will remain largely unchanged from last year.

In a press release, the IRS explained that Social Security’s cost-of-living index did not meet the statutory thresholds required to trigger adjustments to plan contribution caps.

From Treasurer Clint Zweifel: For National Save for Retirement Week, Treasurer Zweifel Offers Advice to Make Your Retirement More Secure

Treasurer Zweifel is raising awareness of the steps Missourians can take to prepare for retirement.

State Treasurer Clint Zweifel is celebrating National Save for Retirement Week, (now know as National Retirement Security Week) October 18-24, with a few tips to help you save and plan for retirement. Individuals and families have more options now than ever before to save for their retirement. From employer-sponsored plans to private options, now is the time to understand what you will need in retirement and stick to a long-term plan to get there.

From News Leader: How To Pay A Pension Debt When Fair Isn't An Option?

There's big trouble brewing in a little corner of Springfield's police-fire pension plan. And despite repeated promises (and city ordinances) saying that public safety employees would foot the bill, taxpayers might be tapped again for help.

The problem goes back to 1999, when police and firefighters agreed to pay for a boost in retirement benefits through a payroll deduction. The cost of the benefit has been rising steadily for veteran employees, raising concerns those long-serving employees will resign or retire early, increasing the financial burden on the few that remain.

Bonus Article:

From The Wall Street Journal: Retired Women Are More Generous Than Men

Maddy Dychtwald: Are retired women really more generous than retired men?

That is one of the questions my firm, Age Wave, in partnership with Merrill Lynch, set out to explore in our just released study, “Giving in Retirement: America’s Longevity Bonus.” We surveyed 3,694 adults age 25-plus from all walks of life and socioeconomic strata to deepen our understanding of the role of giving in retirement and how giving back has the potential to both maximize social impact and provide personal fulfillment.
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Friday Top Five: Retirement Related News for 9/25/2015

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From GOBankingRates: Retirement Fun or Emergency Fund: Which Do I Save for First?

You know you need to save for retirement. But you also know that you need to have a stash of cash for emergencies. However, numerous studies and surveys show that Americans aren’t doing a good job of saving for either.

In fact, GOBankingRates’ 2015 Life + Money survey found that planning for retirement and saving for an emergency are among the top financial challenges that Americans said they are facing.

From Forbes: Retirement Roadmap: Rules Of The Road

Retirement is not a destination but a journey, the accumulation of many action steps over many years. Along the way, there are myriad opportunities to get off the path—and back on it. And at virtually any turn in the road, there are possibilities to speed up or slow down your progress.

And for most of us, it’s a long road, both before and after retirement. Currently, a healthy 65-year-old man has a 25% chance of living to age 92. For a woman, the age is 94. A healthy 65-year-old couple has a 25% chance that one of them will reach 97.1 Even though no one knows how long he or she will live, it’s smart to plan for a long life. 

From CNN Money: Ensuring your retirement savings last as long as you do

I'm retired and have about $800,000 invested in a conservative mix of stocks and bonds. Social Security and pension payments cover my basic expenses, but I'm skittish about the market volatility and would like to have a guaranteed source of income that's not subject to the market's ups and downs. Should I put some of my savings into an immediate annuity? --J.M.

At first glance, I'd say you probably don't need to put any of your savings into an immediate annuity, a type of investment that converts a lump sum into guaranteed monthly payments for life. After all, you've already got enough assured income from Social Security and your pension to cover your essential living expenses.

From USA Today: Social Security recipients: Don't count on a raise in 2016


Retirees, many of whom continue to struggle with dismal yields on deposit accounts, bond funds, annuities and other conservative investments, should prepare for a bit more bad news: Social Security benefits probably won't include a cost-of-living increase next year.

The Social Security Administration has been paying COLAs, or cost-of-living adjustments, to help protect against inflation since 1975 and didn't offer a yearly increase in just two other years. But 2016 seems destined to join 2010 and 2011 as the third year of no increases.

 From Kiplinger: Are You Saving Enough for Retirement? - Quiz

Even before the onset of the worst financial crisis since the Great Depression, many people wondered whether they were saving enough for retirement. Frankly, many weren't. Now, post-meltdown, the question remains: Am I saving enough? Take our quiz to see if you are on track for a comfortable retirement and if not, how you can improve your chances.

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Friday Top Five: Retirement Related News for 9/18/2015

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From MarketWatch: How has the shift to defined contribution plans affected saving?

Many commentators – ourselves included – assert that people are saving less for retirement as a result of the shift from defined benefit to defined contribution plans. To support such an assertion, it would be nice to have counterfactual data showing what the world would look like today in terms of retirement saving if workers were still covered by defined benefit plans and compare that saving with actual contributions to defined contribution plans. But these data do not exist. Furthermore, even if these data did exist, today’s more mobile workforce would make defined benefit plans a less effective way to save for retirement than they were in the past. So such an exercise simply is not feasible.

From BenefitsPro: U.S. savers most confident in retirement, but should they be?

Retirement confidence in the U.S. has catapulted in 2015, according to State Street Global Advisers 2015 Retirement Survey. A bit more than half, or 51 percent, of respondents that participate in a workplace plan say they are extremely or very confident about their retirement readiness, up from 36 percent last year. In 2013, only 21 percent of respondents felt as confident about retirement.

From Gallup: Gov't Workers Happier With Retirement Plans, Other Benefits

WASHINGTON, D.C. -- Public and private sector workers are similarly satisfied with most of the 13 job aspects Gallup asks them about, but government employees are more likely to be satisfied with their retirement plans, health insurance and vacation benefits.

From Ozarks First: Protecting Your Retirement: Push to Close Investment Loophole


KANSAS CITY, Mo. - Today more people than ever invest for their retirement with 401-K or IRA plans, as opposed to traditional pensions, which is why financial experts want to make sure the law requires financial advisers are on your side.

Jay Hardenbrook, associate state director for advocacy with AARP Missouri, says right now there's no fiduciary responsibility for those investment advisers, meaning instead of giving you the best advice, they could be lining their own pocketbooks with bigger fees.

 From Houston Herald: Retirement income from the tooth fairy?

It turns out a good source for retirement income for today’s kids in Missouri may be right under their pillows.

According to a new analysis out today from Delta Dental of Missouri, if today’s 6-year-olds invest all the money they receive from the Tooth Fairy, they could be sitting on a combined total of more than $643 million by the time they reach 67, the traditional retirement age.
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Friday Top Five: Retirement Related News for 9/4/2015

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From BenefitsPro: Lack of savings stresses workers

People aren’t feeling good about where they are financially.

Obligations weigh them down—daily living expenses, the high cost of health care, the potential for job loss or some other catastrophe—and they don’t even have a secure retirement to look forward to, now that pensions are largely a thing of the past.

From The Motley Fool: What Is a Pension? Is It All You'll Need to Retire?

What is a pension? Simple question and a slightly more complex answer than you may think. When most people think about pensions, they imagine someone who spent 30 years working at the factory, then getting a gold watch and a monthly check when he or she retires. And while that may be true for some people (except for the gold watch nowadays), pension benefits are a little more than that.

As a matter of fact, plenty of people who receive pensions will only get a small benefit and it may come from a company the worker left years and years ago. Let's take a closer look at pensions, what they are, and how the benefits work.

From Chicago Tribune: Retirement: Retire to a small city

COLUMBIA, MO. Median home price: $112,000

Columbia, Mo., has three institutions of higher learning within its boundaries. That means lots of bookstores, restaurants, indie films and other amenities that keep both college students and full-time residents entertained and informed. The Osher Lifelong Learning Institute at the University of Missouri -- a university-based, noncredit program for adults 50 and older -- offers courses on everything from Missouri's role in the Civil War to how to use your iPad. Columbia's hospitals are top-rated and offer rehab facilities as well as geriatric and other specialty services.

From Forbes: How A Terrible Saver Grew Her Cash Stash

Jaime Smith had drifted into her 40s and realized she had absolutely no savings. The Seattle-based project coordinator for a health insurance company saw that her industry was going through some turbulence and wondered if she should put some money away should she lose her job and fall behind on her condo payments.

Then she saw a chart make its way through social media, showing that if you put $1 away the first week, $2 the second, $3 the third, and so forth, you’d save $1,378 over the course of a year. Smith realized she could just stash $26.50 each week and get the same result, so she set up an automatic deduction, which funneled the money to a savings account that, in her mind, she couldn’t touch.

From PLANSPONSOR: Retirement Investors Should Plan for Rising Interest Rates

Equities would benefit in the short term, while fixed income investments would decrease in value. Asset managers and retirement plan advisers say they do not expect the Federal Reserve to raise the Federal Funds Rate from its current 25 basis points and that the uncertainty over when the Fed will raise rates will lead to continued volatility in both the fixed income and equities markets.

However, if the Fed were to raise rates, it would benefit equities in the short term, while fixed income investments would decrease in value.
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Friday Top Five: Retirement Related News for 8/28/2015

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From Forbes: Social Security Q&A: How Can We Maximize Child and Spousal Benefits?

Social Security may be one of your largest assets. What and when you collect will make a huge difference to your lifetime benefits.

Today’s Social Security question is about navigating Social Security’s rules to ensure maximum spousal and child’s benefits.

From PlanSponsor: Retirement Planning Takes a Life Vision

There is more to retirement planning than making financial calculations - more to living in retirement than securing an income stream.

Experts assembled for a retirement-themed webcast hosted by the American Institute of CPAs (AICPA) and 360 Degrees of Financial Literacy covered a range of topics, but some of the most interesting points of the discussion actually had little to do with specific investment products or 401(k) account withdrawal strategies.

From BenefitsPro: Claiming Social Security early is hurting retirees

One new study shows the vast majority of recent retirees are claiming Social Security benefits earlier than full retirement age, and that it’s costing them significantly. 

Nationwide Retirement Institute, a platform of Nationwide, the Columbus, Ohio-based insurance and financial services company, found that 83 percent of recent retirees claimed Social Security early. 

From BenefitsPro: Retirement savings, physical health challenging for workers

They may be seeking more help for their investments than for their health, but that doesn’t mean that people are preparing adequately for retirement.

Those are some of the findings of a new survey of 1,000 401(k) plan participants, commissioned by Schwab Retirement Plan Services. Survey results indicate that, although they know they need to save, more than a third (35 percent) say they aren’t saving more for tomorrow because they are unwilling to sacrifice their quality of life today, citing such examples as spending for dinners out and vacations. 

From CNN Money: Same-sex couples will get full Social Security benefits

Same-sex couples across the U.S. will now be able to collect spousal Social Security benefits, a Department of Justice official said Thursday.

While many couples may have thought that June's landmark Supreme Court decision legalizing same-sex marriage nationwide would have also applied to Social Security benefits, that was unclear ... until now.

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Friday Top Five: Retirement Related News for 8/21/2015

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From PlanSponsor: Many Workers Wish They Had Started Saving Earlier

Nine in 10 workers have at least some regret about when they started saving for retirement, American Century found in a survey of 2,031 defined contribution plan participants. Seventy-five percent said they could have saved a little more in the past. More than half point to the first five years of working as they time when they could have saved more than they did. A majority said not saving enough for retirement was one of the biggest mistakes of their lives.

Despite this regret, half of those aged 55 to 65 and 60% of those 25 to 54 admit they are still saving less than they should.

From Center for Retirement Research: The Future of Retirement Is Now

Gray, small, and distinctly female.

This is what the director of MIT’s AgeLab, Joseph Coughlin, sees when he peers into the future of retirement.

“The context and definition of retirement is changing,” Coughlin said earlier this month at the Retirement Research Consortium meeting, where nearly two dozen researchers also presented their Consortium-funded work on a range of retirement topics. [...]

Coughlin spooled out a list of stunning facts to impress on his audience the dramatic impact of rising longevity and graying populations in the developed world, and he urged them to think in fresh ways about retirement. In Japan, for example, adult diapers are outselling baby diapers. China already faces a looming worker shortage, and Germany’s population is in sharp decline. In 2047, there will be more Americans over age 60 than children under 15.

From CNBC: Do you know when to claim Social Security? And how?

Most of us don't think much about Social Security early in our working lives, apart from noting the weekly toll on our paychecks. But as retirement nears, it's important to know when—and how best—to finally claim benefits from that program we've been paying into all those years.

From PlanSponsor: More Participants Find Retirement Plan Provider Resources Helpful

Quarterly statements from retirement plan providers continue to be seen as the most helpful resource to assist participants with planning, saving and investing for retirement, according to Transamerica Center for Retirement Studies’ 16th Annual Retirement Survey. Eighty-five percent of survey respondents in 2015 said quarterly statements are “somewhat” or “very” helpful. This is up from 71% in 2014.

The perceived helpfulness of online tools and calculators to project retirement savings and income needs on the retirement plan provider's website climbed to 83% in 2015 from 65% in 2014, while mobile applications that provide the same tools were somewhat or very helpful to 59% of participants in 2015, compared to 32% in 2014.

From BenefitsPro: Top 5 dreams of workers planning retirement

Forget all that hooey about workers dreamingly longingly of second careers in retirement, pursuing the businesses they always wanted to run, and working for satisfaction other than a paycheck.

According to the 16th annual Transamerica Retirement Survey from Transamerica Center for Retirement Studies, the great majority of workers have other dreams for retirement than work, no matter how rewarding it might be.
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