A digest of timely information and insight about finance, investing, and retirement.
Where Should You Live in Retirement? | The Wall Street Journal
It’s one of the most basic questions people ask themselves when they start planning for retirement: Where am I going to live? It’s also one of the most crucial questions, and one that, surprisingly, many people don’t give a lot of thought to. Sure, they ask themselves some cursory questions—especially about the weather and affordability. But they rarely delve very deeply, even though making the right choice can offer a greater chance of having a more fulfilling life.
Potential Senate tax tweak would curb pretax 401(k) catch-up contributions | CNBC
Workers over age 50 would no longer be able to make catch-up contributions on a pretax basis to their retirement plans under a new amendment to the GOP’s Senate version of the tax bill. This amendment would permit workers over age 50 to contribute up to an additional $9,000 each year to their retirement plans, but it would require that these contributions be made to Roth accounts. Those are accounts where taxes are paid up front. Currently, employees over age 50 can contribute up to $6,000 in additional savings each year to their 401(k) plan and do so on a pretax basis. That’s on top of the current annual $18,000 limit.
Debt in Retirement Affects Confidence | PLANSPONSOR
Americans think it is bad thing for those in retirement to be carrying debt, the LIMRA Secure Retirement Institute found in a survey. However, data from the New York Fed Consumer Credit Panel indicates that those between the ages of 65 and 80 increased their debt load by 40% between 2003 and 2015. The LIMRA Secure Retirement Institute found that 51% of retirees with debt are confident they will be able to live the lifestyle they want, but for retirees without debt, that soars to 70%. Sixty-six percent of Americans view a mortgage held during one’s working years as “good” debt, but only 40% think this is true for those in retirement. Two-thirds (66%) of Americans do not think it is a good idea for people to carry mortgage debt into retirement.
Kentucky Governor Seeks Redo of Teacher Pension Analysis | U.S. News & World Report
Gov. Matt Bevin’s efforts to overhaul Kentucky’s ailing pension systems took another twist Tuesday when his administration asked consultants to redo their analysis of his proposed changes to retirement benefits for public school teachers. The request comes days after consultants forecast Bevin’s pension bill would cost Kentucky taxpayers an extra $4.4 billion over 20 years to fund teacher pensions. That projection assumes more teachers would retire early and the state would earn less on investments. Bevin’s administration signaled Tuesday it doesn’t like the assumptions used by the consultants in their analysis of how the governor’s proposal would impact the Teachers’ Retirement System. The redo request comes as the Republican governor considers convening a special legislative session in Frankfort to deal with one of the country’s worst-funded public pension systems.
Pension? Not for Corrupt Lawmakers Anymore in New York | Governing
Starting next year, long-time lawmakers convicted of corruption in New York can no longer count on their pension. On Tuesday, voters overwhelmingly approved a ballot measure that gives judges the right to trim or revoke the pensions of any public servant convicted of a job-related crime. The measure was largely driven by outrage over the corruption scandal that forced the resignation of New York Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos in 2015. Both long-time lawmakers put in for their substantial pensions just days after their convictions. (Both of their convictions were later overturned on a technicality.)
Should we allow mandatory retirement? | MarketWatch
Will employees be as effective at their jobs at age 75 as they were at age 55? An employer generally cannot require an employee to retire in most professions, even at a respectable age such as 68; and mandating a retirement age as a condition of employment would be regarded as engaging in age discrimination. How will employers deal with what is sure to be an aging (and more expensive) workforce as life expectancies increase?
We should get our 2% raise next July because pera will make money this year probably exceed the expectation and it is earned under the present fiscal year even though it’s not awarded till July any change by the legislature prior to that should not be Applicable to the 2017 the school year