Defined benefit pension plans can be a valuable tool in recruiting and retaining public employees like teachers and public safety officers. Recognizing that, lawmakers in Alaska this year are continuing their efforts to re-establish a pension plan similar to the one the state closed in 2006. They hope to stop a worsening trend of public workers leaving Alaska for jobs in other states that offer better benefits.
2022 was a tough year in the markets, and workers’ retirement accounts were not immune. According to data from Fidelity, the average 401(k) balance was down more than 20 percent for the year, while the average IRA balance dropped by about 23 percent. The good news is that long-term, account balances are still showing good growth, with both 401(k) and IRAs up more than 30 percent over the past decade.
Recent polling finds that Americans are split on their feelings about Social Security and Medicare. Forty-five percent of Americans told Gallup they’re satisfied with the programs and 45 percent said they’re dissatisfied. The survey found the groups that are most likely to utilize Social Security and Medicare — those who are older and who make less money — are also the most likely to be satisfied with them.
If you’re planning what you want your later years to look like, or you’re helping a relative find long-term care, you may consider a continuing care retirement community, or life-plan community. These types of communities provide a wide variety of care and support services as you age, from independent living to memory care. Here are some factors to consider when making a decision.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.
Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.