retirement savings

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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...

'FIRE' Movement Grows: Live Frugally, Retire Early

WSJ: Some adherents save 75% of their incomes

(Newser) - For years, retirement planners have typically advised people to save 15% of their incomes. Adherents of the FIRE movement would scoff at such a paltry goal. FIRE, as the Wall Street Journal explains, stands for Financial Independence, Retire Early. And while the concept of living frugally isn't exactly a...

There's Good News for 401(k) Account Holders

Average balance hits record high

(Newser) - The average 401(k) balance in the US has hit a record high. According to Fidelity Investments' most recent quarterly analysis of its 30 million customers, that average was $106,500 at the end of the third quarter, USA Today reports. That's almost 7% higher than a year prior and...

Number of 401(k) Millionaires Surges
Number of 401(k)
Millionaires Surges

Number of 401(k) Millionaires Surges

Fidelity announces 168K of its clients have at least $1 million in their 401(k) accounts

(Newser) - Good news for many who are saving for retirement: During the second quarter, 168,000 people with 401(k)s managed by Fidelity Investments were millionaires, having at least $1 million in their accounts, per a press release . That's a record high, USA Today reports. It's also up 41% from...

Survey: How Much US Adults Have Saved Is 'Troubling'

About 40% don't have $400 for an emergency

(Newser) - Concerning news from the feds in the personal finance realm: About 40% of US adults would have to sell something or borrow to come up with $400 in an emergency, or wouldn't be able to pay at all, CNBC reports. The Federal Reserve's "Report on the Economic...

Your 401(k) Contributions May Not Be Safe After All

House tax-writing chief Kevin Brady suggests limits are in play, despite Trump's opposition

(Newser) - President Trump declared emphatically this week that 401(k) contributions were off-limits to congressional negotiators working on changes to the tax code. But on Wednesday, one of those negotiators—in fact, one of the most influential ones—suggested otherwise, reports the Washington Post . Kevin Brady, who chairs the House tax-writing committee,...

Trump Says No One Will Lay a Hand on Your 401(k)

President seemed to be responding to a 'NYT' report that suggested otherwise

(Newser) - President Trump promised Monday there will be "no change" to tax incentives for the popular 401(k) retirement programs. "This has always been a great and popular middle class tax break that works, and it stays!" Trump tweeted . The AP reports the president appeared to be responding to...

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