New forecasts show the trust fund that pays benefits for Social Security is expected to run out of money sooner than previously expected. The government expects that fund to be depleted by 2033, a year earlier than the last forecast. Meanwhile, the Medicare trust fund is estimated to run out of cash by 2031, three years later than previously expected.
Younger workers today are saving money for retirement at higher rates than 15 years ago, according to new research from Vanguard. The study found the percentage of workers ages 18 to 24 participating in their employer’s 401(k) plan was 62% in 2021, compared to just 30% in 2006. The reason is a simple one: A change in law in 2006 that increased auto-enrollment in retirement plans.
As tax season winds to a close, the IRS has already doled out billions of dollars in tax refunds, with an average refund of nearly $3,000. And according to a recent survey of thousands of taxpayers, most people will be using their refunds to shore up their finances. The survey found more than 44% of people plan to pay off debt or bills with their refund, and more than a third are putting their refund into a savings account.
Robo-advisors — automated investment accounts that build and maintain a portfolio for you without a traditional human advisor — have grown in popularity due to their ease of use and low fees. Here are some factors to consider when deciding if a robo-advisor is right for your financial needs.
News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.