Planning to Retire
-
The Recession May Be Causing Baby Boomers to Claim Social Security Early
Continue reading… 41 CommentsMost baby boomers say they plan to work during the traditional retirement years. But that doesn’t mean they’re able to find work. The Social Security Administration reports a surge in early retirement claims this year.
-
How Investment Losses Affect Retirement Plans
Continue reading… 37 CommentsBaby boomers on the threshold of retirement have suffered the greatest losses in their retirement accounts and are legitimately concerned about their financial future. Most baby boomers plan to cope by staying in the workforce longer. About 52 percent of boomers between ages 50 and 64 have thought about delaying retirement in the past year. Another 16 percent say they will never retire, according to a Pew Research Center telephone survey of 2,969 adults released today.
-
What Happened to Circuit City Employee Pensions?
Continue reading… 2 CommentsCircuit City, once the nation’s second-largest electronics retailer, filed for bankruptcy protection last year in Richmond, Va. The now defunct retailer began laying off employees and liquidating merchandise earlier this year. But the fate of the retirement plan of those employees remained uncertain until now.
-
Xerox Retirees Protest Benefit Cuts
Continue reading… 14 CommentsAt least 2 dozen Xerox retirees picketed outside the company headquarters in Norwalk, Conn. last week to draw attention to cuts in their retiree healthcare benefits. The former employees wore T-shirts reading, “Xerox Breaks Promises" and carried signs that said “Xerox Can’t Be Trusted” and "Don't Take My Benefits!".
-
401(k) Rollovers Aren’t Always the Best Deal
Continue reading… 16 CommentsIf you are laid off, you have to decide what to do with your old 401(k). But there’s no simple solution that works for everyone. Financial services company Charles Schwab released data this week showing that, among 9,790 terminated participants in Schwab 401(k) plans between January 2008 and March 2009, 43 percent left their assets with their old employer and an equal percentage (43 percent) rolled over their 401(k) into an IRA. The rest cashed out their 401(k) (8 percent), moved their nest egg into a new employer’s plan (4 percent), or took some other form of distribution (2 percent). But there’s a good reason employee behaviors are so fractured.
-
What The Pension Insurance Deficit Means for Your Retirement
Continue reading… 10 CommentsThe government agency that insures private sector pensions and pays out benefits if they fail posted a $33.5 billion deficit for the first half of 2009. That amount is the largest in the Pension Benefit Guaranty Corporation’s 35-year history and triple fiscal year 2008’s $11 billion shortfall. But that doesn’t mean you won’t get your promised benefits, at least in the short term. The Senate held a hearing today to evaluate the PBGC’s ability to insure pensions in the future. Here’s how your retirement plans could be affected.
-
Is Your 401(k) Riskier Than Your Peer's?
Continue reading… 11 CommentsAfter stuffing 401(k)s with stocks for over a decade, employees are cutting back on their equity exposure. The average portion of 401(k) dollars invested in equities dropped to 59 percent in 2008, according to a study of 2.7 million employees eligible for 401(k) plans by human resources consulting firm Hewitt Associates.
-
Did Your 401(k) Lose More Money Than Your Peer's?
Continue reading… 5 CommentsNearly all Americans watched their 401(k) balance dwindle in 2008. Some people toss their 401(k) statements directly into a drawer, thinking it’s better not to dwell on the losses. But if you’re the type of person who likes to pore over the downward trend graphs, here’s a snapshot of the national 401(k) losses.
-
Fidelity: Average 401(k) Participant Has Saved $1,700 Since January
Continue reading… 3 CommentsMost workers with 401(k)s are still managing to save a little something for retirement. The average worker tucked away $1,700 in the first quarter of 2009, according to a new analysis of Fidelity’s 11.3 million 401(k) participants. That’s down slightly from $1,860 in 2008. The majority of employers also kicked in a 401(k) match averaging another $1,080 this year between January 1 and March 31, down from $1,220 last year.
-
Baby Boomers Hit Hardest By Recession
Continue reading… 16 CommentsThose nearing retirement, but not yet retired, are experiencing the worst of the recession’s impact, according to a new Pew Research Center survey. Adults age 65 and older, most of whom have already retired and cut expenses, are the age group least worried about their finances, the telephone survey of 2,969 Americans conducted in February and March found.
-
Higher Medicare Premiums in Store For Some Retirees
Continue reading… 8 CommentsThe recession is taking its toll on Social Security and especially Medicare. This year’s annual checkup found that the Social Security trust fund is predicted to be exhausted until 2037, 4 years sooner than last year, according to the Social Security Board of Trustees report. Medicare’s hospital insurance trust fund is expected to be emptied even sooner, in 2017.
-
Decline in Traditional Pensions Hits New Low
Continue reading… 13 CommentsFortune 100 companies were once employers where workers were likely to get gold-plated retirement benefits. But that’s no longer the case, at least for new hires. Less than half (45 percent) of Fortune 100 companies currently offer traditional or hybrid pensions to new hires, according to a new analysis by consulting firm Watson Wyatt, down from 49 percent in 2008 and 90 percent in 1998. New employees will only be offered a 401(k) or similar type of retirement account at 55 percent of Fortune 100 companies this year. Last year was the first time 401(k) plans outnumbered traditional pension plans among Fortune 100 companies.
-
Career Changers After Age 50 Are Permanently Worse Off
Continue reading… 21 CommentsWorkers who find new jobs after age 50 often take pay cuts, give up pension and health care benefits, and lose managerial duties. But their new jobs often involve less stress and more flexible schedules, a new study found.
-
Men and Women Face Distinct Retirement Challenges
Continue reading… 1 CommentIt’s the battle of the sexes: retirement edition. Two reports crossed my desk this week each pointing out unique retirement challenges faced by either men or women. Here’s a quick look.
-
Employee Misperceptions About Target-Date Funds
Continue reading… 1 CommentTarget-date funds are often marketed as fix-it-and-forget-it funds for people who know little about asset allocation. They typically provide a mix of investments including stocks, bonds, and cash that grow more conservative as you approach a retirement date of your own choosing. New employees are often automatically enrolled in target-date funds if they don’t specifically opt out. In fact, the most popular default investment option for 401(k)s is currently target-date funds, which 53 percent of 401(k) plans used in 2008, up from 35 percent in 2007, according to the consulting firm Greenwich Associates.
-
Wells Fargo Freezes Pension Plan
Continue reading… 14 CommentsWells Fargo, a company that announced record earnings of $3.05 billion in April, is freezing its traditional pension plan for employees. Current participants in both the Wells Fargo and Wachovia cash balance plans will retain their accrued benefits and account balances, but will not receive any more retirement compensation in the plan after July 1, 2009.
-
How Long Will It Take Your Nest Egg to Recover?
Continue reading… 7 CommentsMost Americans aren’t expecting their retirement accounts to recover the losses of the past year any time soon. The majority of workers think it will take 4 or more years to recoup market declines or that their 401(k) will never recover, according to a telephone survey of 1,000 adults conducted in April by Opinion Research Corporation and Edward Jones. Respondents say they expect their retirement savings to recover the losses of the past year:
-
Survey: Americans Want Pensions Back
Continue reading… 10 CommentsAmericans with shrunken nest eggs are feeling nostalgic for pensions. About half of those without a pension (55 percent), say the old-fashioned retirement plan would ease their money worries, according to a National Institute on Retirement Security survey. However, not all workers with pensions are sleeping soundly. Only about 65 percent of Americans with a pension are confident that the payout will be there at retirement.
-
10 Cities with Affordable Nursing Homes
Continue reading… 13 CommentsYou might want to do something nice for your children today, at least if you plan to seek their help paying for a nursing home. A private room in a skilled nursing facility now costs a median price of $74,208 annually, or about $203 a day, according to a new survey.
