Monday, December 23, 2024

Improving Financial Literacy Supports Retirement Wellness and Confidence

2024-02-15  |  retirement financial wellness 

... s and replacing more of their pre-retirement income."In the U.S., with the exception of Social Security and the comparatively small number of workers with guaranteed pensions, saving for retirement is voluntary. This requires the consumer to know how much to save, where to save it, and how much to drawdown at retirement," says Steve Parrish, JD, RICP®, CLU®, CHFC®, AEP®, Professor of Practice at The American College of Financial Services. "This necessitates understanding basic concepts about investing, taxes, insurance, and finances. To measure how prepared Americans are for retiremen...

Inflation Risk Tops Financial Concerns For Women

2022-08-05 12:00:00  |  retirement women 

... rotection is simple. "Prioritize high-interest debt. Delay Social Security to boost monthly benefits. Keep a diversified investment portfolio for growth and use annuities or pensions for retirement fixed costs. Keep track of your spending to avoid unnecessary or impulsive purchases." Only 12% of women are risk-averse investors. 62% are riskier than their parents, while 35% are riskier than their partners. "Women should embrace market risk but also protect their futures," said Alliance for Lifetime Income CEO Jean Statler. "41% of women say portfolio protection is more important than high...

Rising Longevity Influencing Planning and Priorities

2022-05-11 12:00:01  |  retirement 

... nsions, Social Security and personal savings – has become even more wobbly, and unexpected expenses can arise in retirement. Working Americans must double down on the third leg of the stool: saving. According to the study, retirees say they started saving for retirement at age 38 on average, but in retrospect, they should have started saving nearly a decade earlier, at age 29. In addition to saving, other key pre-retirement actions to take include tending to ongoing health and preventive care, discussing retirement plans and goals with family and friends, beginning or expanding volunteering ...

Middle Class U.S. Households Have Few Financial Assets

2021-10-14  |  retirement 

... ddle class is defined as those between the 30th and 70th percentiles of net worth, or the middle 40 percent. As in the Stark Inequality report, three generational cohorts are considered in this middle class analysis: Millennials, Generation X, and Baby Boomers. The research is based upon data from the Federal Reserve's Survey of Consumer Finances. It examines financial asset ownership, a broader category than retirement assets. According to the SCF, the category of financial assets consists of liquid assets, certificates of deposit, directly held pooled investment funds, stocks, bonds, quasi-l...

Many Employers Are Concerned About Employee Retirement Readiness

2021-04-15 12:00:10  |  employment retirement 

... ld encourage their employees to take action in 2021 to improve their financial health, they would focus on increasing employee savings rates or deferral percentages within the retirement plan (37%) and help employees start saving in the plan offered, if eligible (31%). Source: Principal...

Peak 65 Is Coming

2021-03-30 14:00:02  |  retirement 

... rotected income. Fichtner concludes that a new framework is needed to address the current realities that put as many as 50% of households at risk of not having enough money to maintain their standard of living in retirement—and it must include a focus on how protected income can help to provide the security necessary to maintain a given standard of living in retirement. "The countdown to Peak 65 is on and is a wake-up call that the retirement income crisis in America is no longer just looming, it's here," said Jean Statler, CEO of the Alliance for Lifetime Income. "Boomers realize they m...

Retirees Reduce Spending As They Age

2021-03-16  |  retirement 

... r assets. In particular, the analysis reveals that retirees choose to adjust their nondiscretionary spending (e.g., food and shelter) to match their guaranteed income (e.g. Social Security income, pensions), challenging the conventional notion that these expenses are truly fixed. T. Rowe Price's research suggests: Retirees set their spending to match their income to preserve their assets. Thus, understanding personal preferences between asset preservation and lifestyle or spending preservation is critical to aligning retirement income solutions. The personal nature of spending in reti...

Women Report Pandemic Has Impacted Ability To Retire

2021-01-28 09:30:30  |  pandemic women retirement 

... nd men were most likely to use Social Security (both 68%) and defined benefit plans/pensions (42% and 45%). However, women were somewhat less likely than men to use other guaranteed income solutions to protect against outliving savings, such as deferred income annuities (DIAs; 10% vs 12%), single premium immediate annuities (9% vs 16%) and qualified longevity annuity contracts (QLACs; 8% vs 11%). Source: Nationwide...

Health of largest U.S. corporate pension plans showed no improvement in 2020

2021-01-04 09:32:54  |  pensions retirement 

... tor, Retirement, Willis Towers Watson. “With limited improvement in funding levels and a low interest rate environment, sponsors will want to consider the effects the pensions may have on corporate earnings and free cash flow while also considering the outlook for future investment performance.” Source: Globalnewswire ...