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Retirement Planning

All articles tagged with #retirement planning

Retirement Savings Gap Widens Across States as Social Security Falls Short of Comfortable Living Costs
personal-finance3 days ago

Retirement Savings Gap Widens Across States as Social Security Falls Short of Comfortable Living Costs

A new analysis reveals that the savings required for a comfortable retirement vary significantly by state, ranging from $644,000 in North Dakota to over $1 million in New Jersey. These figures assume an average Social Security benefit of $1,975 per month and a 4% withdrawal rate. While some experts suggest a $1.2 million target, most Americans expect to fall short, with median balances in workplace plans hovering around $103,000 for those over 65.

via Fortune|
#401k#cost-of-living#investopedia
Retirees Prioritize 401(k) Drawdowns to Maximize Social Security Benefits at 70
personal-finance14 days ago

Retirees Prioritize 401(k) Drawdowns to Maximize Social Security Benefits at 70

A 64-year-old couple with $1.4 million in a 401(k) is spending down their retirement account first while delaying Social Security claims until age 70. This strategy leverages low tax brackets between ages 64 and 70 for Roth conversions and maximizes the final Social Security benefit, which increases by 8% annually after full retirement age. Delaying benefits ensures a larger survivor benefit and avoids high marginal tax rates triggered by required minimum distributions later in life.

via 24/7 Wall St.|
#401k-strategy#personal-finance#retirement-planning
Retirement at Risk: A Mom’s $156K College-Loan Burden
personal-finance20 days ago

Retirement at Risk: A Mom’s $156K College-Loan Burden

A 60-year-old mom, Nansi Lynch, faces retirement with $156,000 in federal parent PLUS loans she took out for her children’s education. With a high 9.07% interest rate and periods of deferment, the balance has grown, and her current payments around $238 a month could rise when forbearance ends, forcing her to work multiple jobs and postpone retirement as she weighs long-term debt obligations.

via Business Insider|
#debt-burden#forbearance#parent-plus-loans
Late-Career Layoffs Reframe 60: Not Quite Ready to Retire
business20 days ago

Late-Career Layoffs Reframe 60: Not Quite Ready to Retire

USA TODAY profiles 10 Americans who lost jobs around age 60, illustrating how age bias and financial pressures complicate late-career transitions. The piece explores varied paths—from Cynthia Hennessy shifting from corporate law to Make-A-Wish after a Wienermobile rejection, to the Fannins buying a franchise, to Margaret Bowles becoming an NFL photographer at 74—showing that many 60-plus workers still want or need to work even as Social Security at 62 and Medicare at 65 shape retirement timing. Across these stories, people pivot to contracting, new businesses, or different roles while navigating health-insurance costs and the challenge of staying relevant in a changing job market. The overarching message is that 60+ is a precarious but potentially opportunity-filled inflection point, not a guaranteed exit from work.

via usatoday.com|
#age-discrimination#aging-workforce#business
Die With Zero: Rethinking Retirement as a Spending Plan
personal-finance1 month ago

Die With Zero: Rethinking Retirement as a Spending Plan

“Die with zero” urges retirees to spend more now and aim to die with zero wealth to maximize experiences, supported by careful planning and tools like permanent life insurance for liquidity and a tax-free death benefit. Proponents point to shifting mindsets after COVID and studies suggesting many retirees under-spend relative to the 4% rule, while critics warn of tax inefficiencies and potential downsides for those without disciplined plans. The approach can work for those who can plan and prioritize experiences, but it isn’t suitable for everyone, especially those without a written plan or who want to leave bequests.

via USA Today|
#4percent-rule#die-with-zero#life-insurance
America’s $40 trillion debt mountain threatens retirement amid rising borrowing costs
finance1 month ago

America’s $40 trillion debt mountain threatens retirement amid rising borrowing costs

Public debt swelled to about $40.0 trillion by Aug. 18, driven largely by pandemic borrowing and persistent deficits from both Trump and Biden administrations. The government’s debt is projected to reach roughly 120% of GDP by 2036, with interest costs already among the largest expenses, and long-term Treasuries yielding around 5.3%, signaling higher borrowing costs for households and lenders. The piece notes Trump’s self-described “king of debt” label and emphasizes that the debt burden will affect consumers regardless of party. It also advises retirees to consider inflation-hedging strategies (e.g., gold), high-yield cash options, CDs, and professional financial guidance to stress-test retirement plans against higher rates and inflation.

via Yahoo Finance|
#federal-debt#finance#inflation
Rethinking 62: Is Early Social Security Worth It?
personal-finance1 month ago

Rethinking 62: Is Early Social Security Worth It?

The article weighs Dave Ramsey’s caution that taking Social Security at 62 and investing the checks may outperform waiting, against the guaranteed, inflation-adjusted increases from delaying benefits. It explains the break-even point—roughly age 80–82 per AARP data—where waiting surpasses early claiming in lifetime value, notes the risk of stock-market volatility, and highlights the impact on survivor benefits and the earnings test if you work before FRA. Bottom line: there’s no one-size-fits-all rule; plug your numbers into the Social Security site to tailor the decision based on health, cash needs, and life expectancy.

via AOL.com|
#break-even#investing#personal-finance
Couples Need About $1.16 Million to Retire, Varying by State Costs
personal-finance1 month ago

Couples Need About $1.16 Million to Retire, Varying by State Costs

Investopedia finds the typical 65+ couple needs about $1.16 million to retire comfortably, with state costs ranging from roughly $800k to about $1.33M. Housing costs drive about 27% of retirement expenses, and two Social Security checks cover roughly 45% of spending, reducing the nest egg needs for dual-earner couples to about $916k and for single-earner couples to about $1.21M. The analysis uses 2024 federal data and the 4% withdrawal rule, excluding retirement-income taxes and long-term-care costs from the model.

via AOL.com|
#housing-costs#nest-egg#personal-finance
Retirement Needs More Than Social Security Alone
business2 months ago

Retirement Needs More Than Social Security Alone

Nearly half of older workers expect Social Security to be their main retirement income, but experts say it isn’t designed to be enough, replacing only about 40% of preretirement earnings. Financial planners urge saving and diversifying with investments, pensions, and other income. As people age, reliance on Social Security grows, but many retirees still report financial comfort, while lower-income Americans depend more on Social Security.

via USA Today|
#business#ebri#nfp
Young Caregivers Are Stretching Retirement, Study Finds
personal-finance2 months ago

Young Caregivers Are Stretching Retirement, Study Finds

Care.com's 2026 Sandwich Generation Report shows caregiving is moving younger, with dual duties starting at an average age of 34 and often occurring abruptly. This squeeze raises annual costs over $25,000 when unpaid hours are counted, hurts careers (7 in 10 caregivers report some work impact), and jeopardizes retirement (about 6 in 10 expect retirement to be affected, and ~20% may never fully retire). The trend coincides with aging parents and kids needing support at once, amplifying financial stress just as Americans enter peak earning years. Experts urge stabilizing personal finances first (including capturing employer 401(k) matches), early long-term care planning, exploring LTC options or hybrid life policies, and pushing for more flexible workplaces. Resources like LTC planning tools, government programs, and caregiver support networks are recommended to start before a crisis hits.

via USA Today|
#caregiving#long-term-care#personal-finance
Social Security COLA 2026: a modest boost against rising prices
economy2 months ago

Social Security COLA 2026: a modest boost against rising prices

A cost-of-living adjustment (COLA) raises Social Security benefits each year to keep up with inflation, using CPI-W as the gauge. In 2026, benefits rose 2.8%, helping retirees, spouses, some children and disabled beneficiaries as prices for groceries, rent and medications climbed. The COLA is applied to a beneficiary’s base benefit, so your claiming age affects the dollar amount. Some advocates argue the COLA formula doesn’t fully reflect seniors’ expenses (healthcare, housing, prescriptions). While welcome, the boost isn’t a cure for high costs, so planners advise saving and diversifying income. The 2027 COLA is still unknown and likely modest; the COLA also affects SSI and disability benefits, and Medicare Part B premiums can offset increases.

via USA Today|
#cola#cpi-w#economy
Retirees Face Nearly $186K in Healthcare Costs, Fidelity Finds
retirement-benefits2 months ago

Retirees Face Nearly $186K in Healthcare Costs, Fidelity Finds

Fidelity’s annual study estimates a 65-year-old retiring now could need about $185,500 in out-of-pocket healthcare costs over retirement, up 7.5% from last year. The projection assumes traditional Medicare Parts A/B and Part D (premiums, copays, drugs) but excludes long-term care, OTC meds, and most dental. Costs vary by gender, health, location and lifespan, and health expenses can consume roughly a third of Social Security income and about a quarter of total retirement income. The piece suggests proactive planning and using HSAs to prepare for rising healthcare costs in retirement, noting rising Part B premiums (about $202.90/month) and a higher annual deductible this year.

via Yahoo Finance|
#fidelity-survey#health-savings-account#healthcare-costs-in-retirement