When we think of retirement, most of us think of accumulating a large sum of money and then spending it down gradually. One of the best insurance policies to prevent spending all of your money is to have numerous sources of income in retirement. As you'll see, even small amounts of retirement income can go an incredibly long way in making sure you have enough to last you the rest of your life. Here, we'll look at three unexpected sources...
As a financial advisor, one of the most commonly asked questions I get is, “What can I do to improve my retirement picture?” One of the biggest benefits of investing in a 401(k) plan is the ability to grow your assets over time. A 35-year-old who contributes $19,000 annually over a 30-year period can have $1.34 million to retire on at age 65, assuming a 5% annual return. Now that might sound like a difficult amount to put aside each...
By Transamerica Center for Retirement Studies Since 1998, Transamerica Center for Retirement Studies® (TCRS) has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goals for the study are to illuminate emerging trends, promote awareness, and help educate the public. It has grown to be one of the longest running and largest national surveys of its kind. • Limited Print and Electronic Rights. This document and trademark(s) contained herein are federally registered or...
The COVID-19 pandemic has had an outsize effect on people 50 and older: Not only did it impact older adults’ health more severely than younger ones, but it also forced many into early retirement and prompted others to take withdrawals from their savings earlier than they had planned. "The prospects of a secure retirement for millions of workers will be even more precarious following the pandemic, and more Americans of all ages will need to rely even more on Social...
Need some good news about American retirement? A recent survey by the Transamerica Center for Retirement Studies looked at how retirement savings behaviors and expectations have evolved during the Covid-19 pandemic. Some of its findings were grim. Six in 10 respondents said they were concerned about their mental and physical health while the median respondent had just $5,000 in emergency savings. Yet there were also glimmers of hope. More than 80% of respondents saved for retirement during the pandemic, in either employer-sponsored...
A study from The Inclusive Wealth Building Initiative starkly illustrates the gulf between those employees with access to an employer-sponsored retirement plan and those who participate—and, perhaps unsurprisingly, much of that participation depends on income levels. The Initiative, a project of The Economic Innovation Group, derived its data from various surveys, including the Census Bureau’s Survey of Income and Program Participation and the Bureau of Labor Statistics’ National Compensation Survey. The study also used the 2019 Current Population Survey’s Annual...
An overwhelming majority of U.S. workers are still saving for retirement despite the adverse economic, health and employment impact of the coronavirus pandemic, the Transamerica Center for Retirement Studies said Thursday. Eighty-two percent of workers are saving for retirement through a 401(k) or similar retirement plan and/or outside the workplace, the center reported. "Given the magnitude of the challenges workers have faced during the pandemic, it is truly remarkable that they have maintained focus on their future retirement," Catherine Collinson, CEO...
By Neha Bairoliya, Kathleen McKiernan Why do individuals retire and claim their Social Security benefits at the age they do? Understanding the key drivers of these decisions has been an important topic of research as it can help guide policy discussions on the impact of potential reforms to the Social Security program. We revisit this crucial question by exploring new sources of heterogeneity in these decisions as well as novel mechanisms governing these trade-offs. Using data from the Health and...
By Jessie Bur Federal employees planning to retire may soon have the option to complete the requirements using an online system, rather than through the paper format most widely used across the U.S. government. Office of Personnel Management Director Kiran Ahuja told reporters on an Aug. 4 call that the agency will pilot an online retirement application system to address some short-term problems with the federal retirement system, namely slow processing times. Modernization of the federal retirement system has been a central...
Retirement plans for the self-employed range from the good to the outrageously good, and can allow you to save much more than you ever could with a traditional employer. A well-chosen retirement plan can allow entrepreneurs and the self-employed to bankroll a bright retirement. The self-employed have several plan options, including defined contribution plans such as a solo 401(k), SEP IRA and SIMPLE IRA. But they also have some defined benefit options, too. Here are the details on some of the...
