retirement – The News Desk

Where the Presidential Candidates Stand on Retirement | Retirement

16Apr

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Where the Presidential Candidates Stand on Retirement | Retirement

Key Takeaways: The Social Security retirement trust fund and Medicare Hospital Insurance trust fund will both be depleted within the next decade if no action is taken. Joe Biden proposed increasing taxes on high earners to shore up the two trust funds. Donald Trump said he supports the programs but has provided no details about how he plans to address the trust fund shortfalls. Independent and third-party candidates have various approaches to retirement topics, but none are expected to win the presidency and implement their policies. This November, voters will head to the polls to decide who should be president for the next four years. And while debates rage over topics such as border security, immigration and abortion, people shouldn’t overlook the importance of retirement issues.The...

Retiring Abroad? What Expats Need to Know About Taxes | Retirement

2Apr

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Retiring Abroad? What Expats Need to Know About Taxes | Retirement

Key Takeaways: The United States is one of only two countries in the world that taxes its citizens’ global income. Annual tax returns for expats are due on June 15, but payments must be made by April 15. Other countries vary widely in how they may tax an expat’s work or retirement income, if at all. The federal government offers some tax breaks for expats, but they may not always transfer to state tax forms. Living or retiring abroad can be exciting, but it isn’t necessarily easy. You’ll need to navigate visa and residency requirements, find housing and maybe learn another language before moving. And once you’re there, that’s not the end of the challenges. Expats must also understand their tax obligations as U.S. citizens as well as what their host country might require.Here are some ...

What Are the Average Retirement Ages Around the World? | Retirement

2Apr

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What Are the Average Retirement Ages Around the World? | Retirement

Key Takeaways: Global life expectancy is increasing, leading some countries to raise their retirement ages. The retirement age varies significantly around the world, with some countries, such as Iceland, having a retirement age of 67 and others, such as Saudi Arabia, of 47. The shift in the U.S. from company pensions to individual retirement accounts puts more responsibility on workers to save for retirement. Financial considerations like Social Security benefits and health care access play a major role in determining your ideal retirement age. Global life expectancy improved from 46.5 years in 1950 to 66 years in 2000 and is anticipated to increase to 76 by 2050, according to the United Nations Population Division. As a result, some countries are revisiting their retirement ages and ...

Biden’s Crackdown on Junk Fees in Retirement Plans | Retirement

22Dec

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Biden’s Crackdown on Junk Fees in Retirement Plans | Retirement

As part of its initiative to curb junk fees, the Biden administration is setting its sights on retirement plans. In October, the Department of Labor proposed a rule aimed at closing loopholes and requiring financial advisors to provide retirement advice in the best interest of clients. It would expand on the current fiduciary standard that covers advice related to purchasing securities to include types of nonsecurities, affecting recommendations for IRA rollovers and advice to retirement plan sponsors and employers.The initiative also aims to reduce junk fees in retirement products such as individual retirement accounts and 401(k)s. To understand President Joe Biden’s crackdown on junk fees, consider: How much Americans pay in junk fees. What the proposal to crack down on junk fees incl...

Why Do Jobs No Longer Offer Pensions? | Retirement

22Dec

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Why Do Jobs No Longer Offer Pensions? | Retirement

For many years, companies often provided workers with a pension plan, a valuable benefit that set them up with a steady source of guaranteed income during retirement. These days, fewer employers offer a pension: Only 15% of private industry workers had access to one in 2022, according to the Bureau of Labor Statistics.Retirement plans that rely on employee contributions and the rate of returns on their investments are more prevalent today. According to the BLS, 69% of private industry workers had access to such plans in 2022.Why are pensions less common? Consider the following: How pension plans work. Understanding why employers used to offer pensions. Changing times: the shift from traditional pension plans. Contemporary factors contributing to the disappearance of pensions. Alterna...

What Is the Social Security Administration? | Social Security

21Dec

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What Is the Social Security Administration? | Social Security

Almost all working Americans eventually receive Social Security benefits. These funds are collected and distributed by the Social Security Administration, a federal agency that serves to fight poverty. The SSA's programs pay benefits to almost 67 million people, including retirees, children, widows, widowers and those with disabilities. As you manage your finances and prepare for retirement, it can be helpful to understand the workings of the SSA, including the following: Introduction to the Social Security Administration. History of the Social Security Administration. Functions of the Social Security Administration. How the Social Security Administration works. Role of the Social Security Administration in the U.S. economy. Challenges of the Social Security Administration. The fut...

How Much Did 401(k)s Gain in 2023? | 401ks

18Dec

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How Much Did 401(k)s Gain in 2023? | 401ks

Heading into the last weeks of 2023, the S&P 500 appears poised for a gain, which should cheer workers saving for retirement in their employer-sponsored 401(k) plans.That said, most investors’ 401(k) accounts consist of more than the S&P 500, including varied asset classes such as bonds, international stocks and small-cap stocks.So how did those 401(k) accounts do this year? Here's what to know about 2023 retirement investment performance.401(k) Account Balances in 2023That average balance was up significantly from the year-earlier quarter, however, as the market rallied in the first seven months of 2023.Additionally, Fidelity, Vanguard and Bank of America reported that a growing number of retirement savers are taking hardship withdrawals. Account owners are eligible for those wit...

What to Do With Student Loan Debt in Retirement | Student Loans and Advice

12Dec

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What to Do With Student Loan Debt in Retirement | Student Loans and Advice

Seniors are increasingly carrying the burden of student loan debt in America, as many enter their golden years saddled with an extra monthly loan payment eating into their retirement savings.The outstanding student loan balance held by Americans age 60 or older increased twentyfold over the past 15 years, from $6.4 billion in 2004 to $126.6 billion in 2021, according to consumer credit data from the Federal Reserve Bank of New York. The share of student loan debt held by this age group also quadrupled during this time, from 1.9% to 8%.Carrying student loans into retirement can make it difficult to keep up with living expenses such as health care, transportation and assisted living – not to mention the leisure spending and travel you've been working for decades to afford. But managing (and...

Volunteer Opportunities for Seniors | Retirement

7Dec

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Volunteer Opportunities for Seniors | Retirement

Volunteering in retirement allows you to give back, socialize and stay active without spending much money. You may also learn new skills and build friendships while you help organizations in your community.There are many ways to volunteer in retirement, and the level of commitment can range from a few hours or days each week to longer. Some organizations may provide a stipend to help cover expenses like traveling to and from the place you're volunteering. While it can be a great use of your time, you’ll want to make sure you have balance in your life so you don’t get burned out.If you’re thinking about volunteering during retirement, consider the following: Types of volunteer opportunities for seniors. How to find the right volunteer opportunity. Preparing to volunteer: What seniors ne...

How to Turn $500K Into Passive Retirement Income | Retirement

7Dec

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Money

How to Turn $500K Into Passive Retirement Income | Retirement

You’re likely familiar with the phrase "Let your money work for you." That’s the idea behind the concept of passive income, which means earning money with little or no effort.In retirement, it’s certainly possible to generate passive income with your investment portfolio. For example, if you want to invest $500,000 to create passive income, you can go about it in several ways, but give it some thought before jumping in."Investing $500,000 to generate passive retirement income requires careful planning and consideration of various factors, such as risk tolerance, desired income and investment timeline," said Walter Russell, president of Russell and Company in New Albany, Ohio, in an email.Passive or semi-passive income options include: Fixed-income securities. Dividend-paying stocks. Re...