A digest of timely information and insight about finance, investing, and retirement.
What’s next for the 401(k)? Early boosters criticize what it’s become | Denver Business Journal
Early advocates of the 401(k) now have qualms about what they unleashed in the U.S. as workers in even the highest income brackets aren’t saving enough for retirement.
Former Johnson & Johnson human-resources executive Herbert Whitehouse was one of the first in the U.S. to advocate for 401(k) accounts back in 1981, according to The Wall Street Journal. What Whitehouse didn’t foresee was that major employers would replace pensions with the tax-deferred savings tool as a way to slash expenses.
The American retirement dream is not dead…yet | CNBC
A message has been sent that American retirees are screwed. The 401(k) experiment has failed and Social Security is going bust. For many, this is indeed the way it feels, but how do the facts play out?
Pensions, 401(k)s and Social Security all have well documented flaws. So where’s the hope? Our penchant for romanticizing the past has painted a picture that retirees are worse off today than they were “then.” But with flexibility and a simple willingness to sacrifice through saving and investing well, a comfortable retirement is still within our grasp.
How to become a ‘superager’ | The New York Times
Why do some older people remain mentally nimble while others decline? “Superagers” are those whose memory and attention isn’t merely above average for their age, but is actually on par with healthy, active 25-year-olds. The big question is: How do you become a superager? Our best answer at the moment is: work hard at something.
Growing number of Americans are retiring outside the U.S. | USA Today
A growing number of Americans are retiring outside the United States. The number grew 17 percent between 2010 and 2015 and is expected to increase over the next 10 years as more baby boomers retire. Just under 400,000 American retirees are now living abroad, according to the Social Security Administration. The countries they have chosen most often: Canada, Japan, Mexico, Germany and the United Kingdom. Retirees most often cite the cost of living as the reason for moving elsewhere.
Prognosis for Rx in 2017: more painful drug-price hikes | CBS News
If there’s a remedy for rising drug costs, it’s not likely to be available to many Americans in 2017. Drug prices continue to rise faster than either wages or the cost of living, putting a crimp in many household budgets.
Prescription drug costs for Americans under 65 years old are projected to jump 11.6 percent in 2017, or at a quicker pace than the 11.3 percent price increase in 2016, according to consulting firm Segal Consulting. Older Americans won’t get much of a break: Their drug costs are projected to rise 9.9 percent next year, compared with 10.9 percent in 2016. By comparison, wages are expected to rise just 2.5 percent in 2017.
CalPERS votes to lower expected investment return rate to 7 percent by 2020 Reuters
The California Public Employees’ Retirement System board voted on Wednesday to lower the pension plan’s expected rate of return from investments to 7 percent by 2020, a decision that comes after the fund failed to meet its 7.5 percent target the past two years.
The move by the country’s largest public pension fund will place a greater financial burden on the state’s cities, counties and other local government agencies across California that rely on CalPERS pensions.
Why don’t we move to HR676, Expanded Medicare for All? Medicare is the most efficient health care system in the world. Our Medicare is like Canada’s health care system. Difference, it is socialism just like Medicare. We can’t pretend that keeping the insurance companies in the middle with their CEOs making more than $22 million/per year is the way to go. We pay twice as much as developed countries/person and do not get true medical, dental, eye care for all.
Also, Medicare Advantage is the insurance companies’ way to take money away from Medicare and we need to tell the truth and not support it. The insurance companies bill 110% of every bill and take billions of dollars away from Medicare.