A digest of timely information and insight about finance, investing, and retirement.
The 401(k) crisis is getting worse | Bloomberg
Nearly half of U.S. workers lacked access to company-sponsored retirement plans in 2013, compared with 39 percent in 1999, according to an analysis of Census Bureau data. And few workers save anything outside of employer-sponsored plans. Only 8 percent of taxpayers eligible to set aside money in an IRA or Roth IRA did so in 2010, according to the IRS. The lack of plans is fueling a retirement-savings crisis.
Baby boomers hugely underestimate what they need for retirement | The Wall Street Journal
A new survey from BlackRock on attitudes about money and financial goals found Americans are holding nearly twice as much cash as they think they ought to in order to reach their retirement goals. Baby boomers, who are retiring in droves, face a staggering shortfall. And the problem is especially acute for younger workers, who will likely spend decades in retirement – much longer than their parents or grandparents. The BlackRock survey also suggests that the emotional scars of the financial crisis may be holding back some potential U.S. investors. [Read an article from The Dime on investing, rather than saving, for retirement.]
Why is it so hard to save? U.K. shows it doesn’t have to be | NPR
Many people in the U.S. feel they can’t afford to save. But if employees are automatically enrolled in a retirement program, odds are overwhelming that they’ll keep saving, even if they think they can’t afford it. That’s what’s happening in England, thanks to a law that is being phased in right now. [Read more about the impact of inertia on retirement savings in PERA on the Issues.]
Health care costs impact retirement savings | Plan Sponsor
Fifty-nine percent of workers say that their health insurance costs impact what they are able to set aside for retirement, according to a LIMRA study on financial stress.
The best states for an early retirement | CBS Money Watch
Colorado ranks 11th as a good state for early retirement, according rankings from SmartAsset. To find the best states for an early retirement, SmartAsset looked at six separate metrics including state and local taxes, sales tax, property tax rates and living costs such as health insurance and housing.
10 best places to retire on $100 a day | U.S. News & World Report
One way to quickly lower retirement costs is to move to a place with a low cost of living. U.S. News analyzed Census Bureau data to determine where retirees could cover basic expenses with less than $100 a day, or $36,500 per year, in retirement income. Aurora, Colorado is one of them.
Colorado ranks well for its financial well being | Denver Business Journal
People in Colorado are generally doing pretty well when it comes to happiness related to money management. Colorado ranks number 11 out of the 50 states in financial well-being, according to a report that looks at money management skills, capacity to reduce financial stress, control over economic lives and ability to increase security.
