It’s a catch-22: You feel that you should focus on paying down debt, but you also want to save for retirement. It may be comforting to know you’re not alone.
Women in the workforce generally earn less than men. While the gender pay gap is narrowing, it is still significant. The difference in wages, coupled with other factors, can lead to a shortfall in retirement savings for women.
Planning on working during retirement? If so, you’re not alone. Recent studies have consistently shown that a majority of retirees plan to work at least some period of time during their retirement years. Here are some points to consider.
Many pension plan participants have the option to take their money in a lump sum when they retire. And since 2012, an increasing number of large corporate pensions have been implementing “lump-sum windows” during which vested former employees have a limited amount of time (typically 30 to 90 days) to accept or decline buyout offers.3 (Lump-sum offers to retirees already receiving pension benefits are no longer allowed.)
When planning for retirement, an important factor that is often overlooked is the potential for declining cognitive skills associated with aging. Cognitive impairment (CI), often attributable to dementia or Alzheimer’s disease, can have profound implications for your overall health and well-being, particularly during retirement. The cost of care can absorb income and significantly deplete retirement savings. It can also deprive you of the ability to effectively manage your financial affairs.
According to the Plan Sponsor Council of America (PSCA), more than half of all 401(k) plans enroll employees automatically. Yet just 19% of plans with fewer than 50 participants have this feature. Might automatic enrollment be right for your organization?
If your employer-sponsored retirement savings plan allows pretax, after-tax, and/or Roth contributions, which should you choose?
If you’re within 10 years of retirement, you’ve probably spent some time thinking about this major life change. The transition to retirement can seem a bit daunting, even overwhelming. If you find yourself wondering where to begin, the following points may help you focus.
Do you really know as much as you think you do about your 401(k) plan? Let’s find out.
Your employer-sponsored retirement savings plan is a convenient way to help you accumulate money for retirement. Using payroll deductions, you invest for the future automatically. … But choosing to participate is just one important step. Another key to making it work for you is managing risk in your portfolio.