Planning to Retire
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Pension Insurer's Deficit Nearly Doubles
Continue reading… 0 CommentsThe government agency that insures private sector pensions recently announced that its deficit has almost doubled to $22 billion in fiscal year 2009, up from a $11.2 billion deficit in September 2008. But financial problems at the Pension Benefit Guaranty Corporation have eased somewhat since March 31 when the agency reported a record $33.5 billion deficit.
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Executives Eliminate Worker Pensions, Get $350 Million
Continue reading… 0 CommentsSome executives have received huge compensation packages even as their firms eliminated worker pensions. Ten large U.S. companies paid senior executives a total of $350 million in the 5 years leading up to terminating traditional pension plans for employees, a new Government Accountability Office analysis found.
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Fidelity: Average 401(k) Balance Rebounds
Continue reading… 1 CommentThe average 401(k) account balance rose to $60,700 as of September 30, up nearly 13 percent from the end of the second quarter, according to a new analysis of Fidelity-administered 401(k) plans. The gains reflect the recent stock market rally, new employee contributions, and enhanced employer 401(k) matches.
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Drug Prices Outpace Inflation
Continue reading… 1 CommentPrescription drug prices for medications commonly used by seniors are rising far faster than the costs of other consumer goods and services. The average price of brand name prescriptions typically used by Medicare beneficiaries has increased 9.3 percent since September 2008, up from an 8.7 percent increase last year, according to a new report from the PRIME Institute at the University of Minnesota and the AARP Public Policy Institute. The rate of inflation over the same period, measured by the Consumer Price Index, fell 0.3 percent.
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AARP Reinstates 401(k) Match
Continue reading… 0 CommentsAARP will resume matching 401(k) contributions for employees beginning on January 1. The giant advocacy group, which represents the interests of older Americans, has saved $7 million since suspending the retirement benefit in March.
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Lunch, With a Side of Investment Advice
Continue reading… 0 CommentsFiguring out how to invest for retirement may not make the most relaxing lunchtime conversation. But many seniors seem to be willing to discuss their retirement finances in exchange for a free meal. Approximately 5.9 million Americans age 55 and older have attended a free lunch or dinner seminar in the past three years, according to new AARP and North American Securities Administrators Association research released yesterday.
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Generation Y Optimistic About Retirement
Continue reading… 0 CommentsMembers of Generation Y have been saddled with the highest unemployment rate in decades just as they enter the workforce. Those born between 1975 and 1991 also have unprecedented levels of student loan and credit card debt. But there’s one thing they’re feeling pretty optimistic about: retirement.
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Baby Boomers on the Verge of Retirement
Continue reading… 0 CommentsThe majority of baby boomers are white, married, have attended college, own their own home, and are currently employed, according to a new U.S. Census Bureau report released this week. The new analysis of 2006 data is the first profile of this 78 million-member generation in 13 years. Here’s a snapshot of the baby boomers as they approach retirement.
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Sticking with Stocks, Even in Retirement
Continue reading… 0 CommentsRetired Americans have less money in the stock market than current workers, but they didn’t abandon equities completely when they left the workforce. Two-thirds of retired investors (67 percent) continue to hold at least some equities in their portfolio, only slightly less than the 75 percent of all retirement savers who hold stocks, according to a recent Vanguard survey of 3,012 Americans between ages 21 to 79 with $5,000 or more in savings and investments. However, the oldest workers and retirees allocate less of their savings to more risky investments. For example, the average 70-something has 49 percent of their savings in equities, compared to 57 percent for those in their 30s.
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Government Insured Pension Limits Won’t Increase in 2010
Continue reading… 0 CommentsThe maximum pension payment insured by the federal government will be $54,000 in 2010, unchanged from 2009, the agency that insures private sector pensions recently announced. Insurance amounts will not increase next year because they are indexed to Social Security benefits, which will also remain the same in 2010, according to the Pension Benefit Guaranty Corporation.
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401(k) Savings Limits Stay the Same in 2010
Continue reading… 0 CommentsThe maximum contribution limit for 401(k)s and other retirement accounts will stay the same next year, the IRS recently announced. The contribution ceiling will remain $16,500 in 2010. Workers age 50 and older will be able to make catch-up contributions of an additional $5,500 next year, also unchanged from 2009.
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For a Good Night’s Sleep, Retire
Continue reading… 0 CommentsMany Americans lose sleep worrying about how they will pay for retirement expenses. But retirement may actually be a remedy for sleep disorders, according to a study published in the November issue of the journal SLEEP. Researchers found that the removal of work-related stress actually helped retirees sleep more soundly.
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Half of Laid-Off Workers Raid 401(k)s
Continue reading… 0 CommentsAlmost half of laid-off workers succumbed to the temptation of spending their retirement stash last year. Some 46 percent of retirement savers who left their job in 2008 cashed out their 401(k), according to a new Hewitt Associates study of 170,000 401(k) participants who terminated employment last year. The rest kept their savings in their prior employer’s 401(k) plan (29 percent) or rolled the money over into an IRA or a new employer’s 401(k) plan (25 percent).
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Private Sector Jobs With the Best Retirement Benefits
Continue reading… 2 CommentsPrivate sector companies have steadily provided less retirement benefits to workers over the past decade. The value of retirement plans for employees, including traditional pensions, 401(k)s, retiree medical insurance, and post-retirement life insurance, dropped from 7.8 percent of pay in 2002 to 6.9 percent of pay in 2008, according to a Watson Wyatt analysis of 183 medium and large private sector employers over the 7-year period. About half of the decline is due to the elimination of retiree health plans at most companies. The shift from traditional pensions to 401(k)s also eroded the total value of retirement benefits.
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Study: Delaying Retirement Improves Your Health
Continue reading… 1 CommentSeniors who work part-time during their retirement years may stay healthy longer, suggests a new study released this week. Retirees who remained employed, but reduced their hours, experienced fewer major diseases and were self-sufficient longer than those who abruptly retired.
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No Social Security Increase in 2010
Continue reading… 15 CommentsRetirees will not receive a Social Security cost-of-living increase in 2010, the Social Security Administration announced today. This will be the first year without a boost in Social Security payments since automatic increases for inflation went into effect in 1975.
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Smaller Social Security Checks for 1947-Born Boomers
Continue reading… 4 CommentsSocial Security checks increased by 5.8 percent this year, the largest Social Security increase in over 25 years. But beneficiaries are not expected to receive another cost-of-living adjustment until 2012, under current law. Social Security increases are tied to the Consumer Price Index for Urban Workers, which decreased in 2009 due to plummeting prices.
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Higher Medicare Part D Deductibles Next Year
Continue reading… 2 CommentsSeniors get an opportunity to shop around for new prescription drug coverage once a year and can potentially switch into a lower cost plan. Each state will have 39 or more prescription drug plans to choose from in 2010, each with different prices and coverage options. In Florida, for example, monthly premiums will range from $19.80 to $100.40 next year. But premium prices aren’t the only cost factor you should evaluate. More Part D drug plans will have deductibles and coverage gaps in 2010 than ever before.
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Calling Your Retirement Adviser Via Bar Code
Continue reading… 2 CommentsA new advertisement is encouraging investors to connect with a retirement adviser by scanning a bar code with their phone. The TIAA-CREF ad campaign invites smartphone users to take a picture of a black and white square, which will connect them with an investment consultant.
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Work is the New Retirement
Continue reading… 0 CommentsForget about early retirement. Most Americans now plan to stay employed as long as they are able to work or can hold on to a job. A recent Bankrate, Inc. and Princeton Survey Research Associates International phone survey of 1,003 adults age 18 or older conduced in September found that 75 percent of Americans plan to work as long as they can because they enjoy work (39 percent), need the money (32 percent), or for both reasons.
