retirement savings

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Solid Saving Rates, Market Drive Up 401(k) Millionaires

Fidelity finds top group averages $1.6M in accounts

(Newser) - The ranks of 401(k) millionaires shot up 9.5% in the third quarter, a new analysis shows. Fidelity Investments found that 544,000 of the 24 million plan participants now have balances above $1 million, CNN reports. Their average balances came in at $1.616 million, up from $1.595...

'Sandwich Generation' Is Feeling the Squeeze

A growing number of Americans are caring for both younger and older generations

(Newser) - Saving for retirement can feel like a pipedream for people in the "sandwich generation." Tasked with supporting both growing children and aging parents, people in their sandwich era aren't designated to a specific age group, though Market Watch says about a quarter of Americans fit the definition....

Here's What You Can Put Toward Retirement in 2025

IRS releases annual cost-of-living adjustments, including updates on contributions to 401(k)s, IRAs

(Newser) - The IRS is out with its annual cost-of-living tweaks, including increases in how much Americans can inject into their pension plans and retirement accounts. The details, per the AP :
  • 401(k), 403(b), federal Thrift Savings Plan, most 427 plans: In 2025, individuals will be able to contribute up to $23,500
...

10 Best US Cities to Retire Affordably

American Canyon in California is No. 1 in ranking by Fortune

(Newser) - Longer lifespans mean having more time to enjoy retirement—and also a longer timeframe over which your life's savings must stretch. Fortune honed in on this reality in its search for the most affordable US cities to retire. To assess what's affordable, they crunched 200 metrics across 2,...

Elite Group of 401(k) Holders Breaks a New Record

Fidelity says there are more '401(k)-created millionaires' than ever in the US

(Newser) - Got a retirement plan in the seven figures? Consider yourself among a record-breaking group: A new report from Fidelity Investments says there are more US participants in 401(k) plans with balances over $1 million than ever, though the stats show that most Americans are "woefully unprepared" for their retirement...

Surprising Number Have a Big 401k Misunderstanding

Survey finds that most non-participants actually think they are participants

(Newser) - A new survey on retirement savings illustrates a jarring example of just how confused many workers are about how to go about it:
  • Come again? The takeaway stat is that 59% of people who are not participating in a 401k actually think they are participating in a 401k.
The survey...

A Lot More 401(k) Accounts Now Have $1M+ Balances

Still, Fidelity's 485K million-plus accounts represent just 2% of their defined contribution plans

(Newser) - The number of retirement accounts with balances above $1 million spiked dramatically to a new record this year. Some 485,000 401(k) accounts had balances above $1 million in the first quarter, CNN reports. That's a 15% increase from the end of 2023 and 43% higher than this time...

Survey: Many Say They're Being Priced Out of Retirement

Blame goes to cost of housing and everyday expenses

(Newser) - More than one-quarter of US adults over age 50 say they expect to never retire, and 70% are concerned about prices rising faster than their income, an AARP survey finds. About 1 in 4 have no retirement savings, according to research released Wednesday by the organization that shows how an...

'Peak Boomers' May Have a Retirement Problem

Analysis suggests two-thirds of those turning 65 don't have enough savings

(Newser) - With the "silver tsunami" upon us, more boomers will turn 65 this year than in any other time in history in the US. But most won't be able to retire comfortably at the start of their golden years, according to CBS News , with two-thirds unlikely to have the...

Americans Think $1.46M Is the Magic Number

That's how much they think they need to retire comfortably, per a new survey

(Newser) - Americans' best guess of what they'll need to retire comfortably is on the rise. The Wall Street Journal reports that a survey of 4,588 adults conducted by Northwestern Mutual put the magic number at $1.46 million; in last year's survey, they pegged the target at $1....

1 in 3 Americans Don't Think They'll Be Able to Retire

About 28% say they have nothing at all saved

(Newser) - A new survey on the saving habits of Americans reveals some stark truths for a large number of people:
  • 28% say they have saved nothing for retirement, according to the GoBankingRates survey. The breakdown for that by age group: 18-24 (28% have nothing saved); 25-34 (30%); 35-44 (35%); 45-54 (33%);
...

Where America's Pension System Ranks in the World

Not so great: It's No. 22 out of 47 nations ranked

(Newser) - An annual assessment of the world's pension systems finds the US to be in "meh" territory. America ranked No. 22 out of 47 nations in the Mercer CFA Institute Global Pension Index , with an overall grade out of 63 out of 100, or C+. "In the US,...

Growing Number of Americans Tapping Into 401(k) Plans

According to data from Bank of America

(Newser) - There's been an uptick in the number of Americans turning to their 401(k) plans to help with financial woes, according to data released by Bank of America. CNN reports the banking giant saw a 36% increase in "hardship" withdrawals in Q2 as compared to the same period a...

Overlooked in Retirement Planning: 'Longevity Literacy'

Women are better than men at estimating life expectancy

(Newser) - In a financial-advice essay for the AP , Nerdwallet's Liz Weston notes that women often don’t score as well as men in surveys of financial literacy. One area where they seem to do better is “longevity literacy,” or understanding how long they are likely to live. Longevity...

Poll: More Fear They'll Lack Enough Money in Retirement

Inflation, debt, returns on savings worry retirees and workers

(Newser) - Inflation and falling stock prices have contributed to fewer retirees and workers than a year ago feeling good about having enough money for a comfortable retirement. The share of workers confident about their retirement finances fell from 73% to 64% in that time, the poll by the nonprofit Employee Benefit...

Millions Near Retirement Age Have No Savings

Nearly half of people 55 to 66 report none

(Newser) - Stats released by the US Census Bureau this year translate to an unpleasant reality: Millions of Americans near the age of retirement have no savings. And it's more true for women than men. Some of the numbers:
  • Roughly 50% of women age 55 to 66 reported no personal retirement
...

Big Changes on Horizon for Your 401(k)

Congress is poised to pass legislation on retirement savings

(Newser) - The massive spending package that Congress is poised to pass before Friday includes tangible changes for ordinary Americans when it comes to retirement savings—particularly 401(k) savings. Some of the proposed changes as part of the Secure Act 2.0 legislation:
  • Automatic: Most employers would be required to automatically enroll
...

Guideline for Retirement Spending Returns to 4%

Or pretty close: Morningstar's annual advisory suggests new retirees withdraw 3.8%

(Newser) - New retirees who want to ensure their money lasts for 30 years should plan on spending about 4% of it in their first year. The financial services company Morningstar issued its annual advisory Monday, and it recommends a starting withdrawal rate of 3.8%, reports the Wall Street Journal . The...

IRS Announces Record Boost for 401(k) Infusions

For 2023, you can deposit $22,500 to qualified retirement plans—up to $30K for those 50 and over

(Newser) - Good news for those who want to pump more money into their retirement savings: The IRS just raised the contribution limit on 401(k) plans for 2023, as well as for similar tax-deferred plans for public education workers, federal and state employees, and those who work for tax-exempt groups. That new...

Millennials Are Winning at Saving for Retirement

And 24% of those with savings have $100K saved already

(Newser) - Among those of their generation saving for retirement, baby boomers started saving, on average, at age 33. For Generation Xers, it was age 30. For millennials? Age 24, according to a new Bank of America survey cited by USA Today . Nearly 3 out of 4 millennials, who are between the...

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