A digest of timely information and insight about finance, investing, and retirement.
Don’t get spooked by spending in retirement | U.S. News & World Report
Of all the spooky things haunting retirees, running out of money seems to top the list. In fact, nearly two-thirds (63 percent) fear running out of money in retirement more than death, according to the Generations Ahead Study by Allianz Life. But hoarding assets can prevent people from enjoying retirement. And this fear of overspending might be one of the primary drivers of a growing, but lesser-known trend in which people are actually living too frugally in retirement.
What putting retirement plans on hold means for your Medicare | CNBC
If you’re at least 65 and still punching the clock at work, odds are that you have two benefit enrollment periods to worry about this year. That’s because in addition to signing up for next year’s workplace health benefits, older workers must also make sure to coordinate their coverage with their eligibility for Medicare. The ordeal is a confusing one for the growing population of older workers. By 2024 there will be about 13 million individuals age 65 and older in the workforce, according to the Bureau of Labor Statistics.
US retirement system still ranks low, but slightly improved | PlanSponsor
Getting better, but still needs improvement. Those are the findings from Melbourne Mercer Global Pension Index (MMGPI), an Australia-based financial consultant. Measuring 34 pension systems, the index shows that the Netherlands and Denmark (with scores of 80.3 and 80.2, respectively) both offer A-Grade world-class retirement income systems with good benefits. However, common across all results was the growing tension between adequacy and sustainability.
Americans need to double their retirement savings | CNBC
More people are saving for retirement today and they’re starting to do so younger. Still, they’re not putting nearly enough away, according to a new report from the Stanford Center on Longevity. People should save between 10 percent and 17 percent of their income if they plan to retire at 65 (even if they start at 25), the researchers write. Most people aren’t meeting that goal. Family members aged 25 to 64 are saving a median of only about 6 percent to 8 percent of their income.
Guaranteed income preferred over lump sums | PlanSponsor
What would you do? Fifty-three percent of Americans say they would prefer guaranteed lifetime income of $660 a month over a $120,000 lump sum payment, the LIMRA Secure Retirement Institute (LIMRA SRI) learned in a survey. When asked why they would take the guaranteed income, 57 percent said they expect to live a long life and 46 percent said it was because it would give them peace of mind.
10 scams that will ruin your retirement | Kiplinger
Scams can hit anyone at any age, but falling victim to fraud is especially painful for retirees, many of whom are counting on the fixed income from their nest eggs and Social Security benefits to last through retirement. According to Federal Trade Commission data, retirement-age fraud victims tend to lose more money to scams than younger victims. The median fraud loss was $500 for victims in their 60s, $621 for victims in their 70s, and $1,092 for victims 80 and over. More than 107,000 Americans ages 60 to 69 reported being victims of fraud last year, the highest total of any age range tracked by the FTC.
Fixed incomeA type of investment that pays investors a fixed rate of interest over a set period of time. Bonds are a common type of fixed income investment.
Much of this fraud could be eliminated if the federal government would simply ban robocalls, and require that phone companies provide this for free. If the scammers could be forced to pay more for their attempted scams than they could possibly expect to execute successfully, then this problem could be mostly solved.
I totally agree!