A digest of timely information and insight about finance, investing, and retirement.
The Social Security Retirement Age Increases in 2018 | U.S. News & World Report
Most Baby Boomers are eligible to claim their full Social Security benefit at age 66. However, Americans who will turn 62 in 2018 need to delay claiming Social Security for an additional four months in order to claim their full benefit.
Borrowing from Social Security is the wrong way to finance student debt and parental leave | MarketWatch
Recently two proposals have emerged that would essentially allow individuals to tap Social Security today in exchange for lower benefits in the future. The first was Congressman Tom Garrett’s (R-Va.) Student Security Act of 2017, which would allow young people to pay off a portion of their student loans today in exchange for a reduction in their future Social Security benefits. The second was a Wall Street Journal op-ed by Kristin Shapiro and Andrew Biggs that would use the Social Security Disability program’s formula to fund 12 weeks of paid parental leave in exchange for retiring about six weeks later.
Planning to Retire Later Doesn’t Reflect Reality | PLANSPONSOR
Studies show that many employees expect to retire later as part of their plan to have more income in retirement. However, a study from Prudential finds 51 percent of retirees retired earlier than planned. Among those, only 23 percent retired earlier than planned because they either had enough money to retire, wanted to retire, or were tired of working. Forty-six percent of those who retired earlier than expected did so due to health problems, 30 percent were laid off from their jobs or offered an early retirement incentive package, and 11 percent left work to take care of a loved one.
What now? How to make sense of the stock market’s wild ride | MarketWatch
When markets go crazy, financial writers feel compelled to dust off the keyboard and cook up profound insights. But, with the bar set a little lower, here are 13 modest observations following the 4.1 percent plunge by the S&P 500 early in February.
Why So Many Men Die at 62 | The Wall Street Journal
If you’re approaching age 62, thoughts about retirement and collecting Social Security may be on your mind. Here’s something else to think about as well. A significant increase in mortality starts at 62, according to a new study. The escalation is much more dramatic for men than for women. And the fatal catalyst, the study’s authors believe, might be the availability of Social Security.
Support eroding in Kentucky House for 401(k)-style public pensions | Lexington Herald-Leader
Sentiment appears to be waning in the Kentucky House to switch public pension systems to 401(k)-style accounts as Gov. Matt Bevin proposed last October. House Education Chairman John “Bam” Carney, R-Campbellsville, said Monday he is “leaning against” moving public employees from a defined-benefits system to a defined-contribution system. A defined pension plan is one in which an employer offers a specified pension payment on retirement predetermined by a formula based on the employee’s earnings history, tenure and age instead of depending directly on a person’s investment returns. A defined contribution plan depends on individual investments like 401(k) programs.
Defined contributionA type of individual retirement plan in which an employee saves a portion of each paycheck (along with a potential employer match) and invests that money. The employee’s retirement benefit is based on their account balance at retirement. A 401(k) is a type of defined contribution plan.
