5 Top Headlines in Retirement News

A healthy retirement at age 60 is no longer a sure thing. Headlines show Social Security is not a reliable source of post-retirement income for those currently under 40, and the new retirement age will be closer to 67-70 in the years to come. Read on for more understanding of the challenges facing younger generations when planning for retirement.

- Eric

Elderly worker

‘Gen Y Is Gen Worry’ When It Comes to Financing Retirement

Fifty-seven percent of working mass affluent Americans expect to retire later than they planned a year ago, according to Merrill Edge, a 36% increase from January 2011. Mass affluent investors are putting their money where their mouth is. They say they are worried about accumulating sufficient resources for retirement and other financial goals, and as a result they are delaying plans to retire and cutting current spending.

More from PlanAdvisor >>

401(k) Participants Mostly Unengaged in Retirement Planning

More than half of 401(k) participants surveyed say they do not have the time, interest or knowledge to properly manage their 401(k) portfolio.An interesting finding to consider for upcoming participant fee disclosure rules is that nearly one-third of respondent do not know they pay any fees for their 401(k) plan. Of the 70% that understand they pay some sort of fees, 95% do not know about investment fund operating expenses, and 67% do not know about plan administration fees.

More from PlanSponsor >>

The New Ideal Retirement Age: 67

The age the typical worker expects to retire is no longer 65. For the first time this year, Americans expect to retire at an average age of 67, up from 66 in 2011, according to a recent Gallup poll of 1,016 adults. The average expected retirement age and been gradually increasing over the past seventeen years from age 60 in 1995 to 64 in 2005.

More from USNews >>

Congress Eyes 401(k)s Again

As policy makers gear up for the tax-reform effort expected after the presidential election, they are asking: Can 401(k) plans, individual retirement accounts, and other tax-deferred vehicles be streamlined while getting more traction among people with lower incomes?

At the very least, the increasing focus on retirement savings is a reminder that tax treatment of the accounts, once considered permanent, is anything but. Here’s what you need to know about lawmakers’ eyeing your nest egg.

More from Wall Street Journal >>

If You’re Under 40, Don’t Bank on Social Security

Come 2033, just 21 short years from now, Social Security will pay just 75% of scheduled benefits, just 75 cents on the dollar. So, instead of getting, say, $1,000 per month from Social Security, you’ll get $750 per month come 2033.

More from Wall Street Journal >>

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About thebenefitblog

Eric is a Vice President at Lockton Insurance Brokers, Inc. He joined Lockton in 2005 specializing in Health and Welfare Benefits, Qualified & Non-Qualified Retirement Plans and Life Insurance for Business Planning. Eric's clients utilize his expertise in the areas of Plan Due Diligence, Transaction Structure, Fiduciary Oversight, Investment Design, Compliance and Vendor negotiation to improve the operational & financial outcome for each client. The Benefit Blog is a place to share that expertise and industry news.
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