January 2024
22Jan

US. 5 Gen Xers share what it’s really like to plan for retirement: ‘My generation is going to have a harder time than boomers’

The oldest Gen Xers, born in 1965, are just a few years away from traditional retirement age. But many don’t feel nearly ready enough for that next chapter. Fortune received hundreds of emails from Gen Xers who say they are worried about what the future holds in store for them and their retirement readiness. “I’ve followed my dreams, as my generation was told to do, but found that some dreams cost more to follow than others,” writes one Gen Xer. “My savings...

January 22, 2024
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19Jan

The Most Often Overlooked Step In Retirement Planning

When it comes to retirement planning, conversations often center around portfolio management and investment strategies—what I like to call the bling of the financial world. Generally, you sit down with an advisor and begin your work together by listing all your assets and expenses. They, in turn, provide you with a thick report of projected returns, inflation assumptions, and a—likely daunting—required savings number for your retirement nest egg. More often than not, they then offer a fancy investment product or...

January 19, 2024
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19Jan

Occupations Shape Retirement Across Countries

By Philip Sauré, Arthur Seibold, Elizaveta Smorodenkova & Hosny Zoabi We study how occupations shape individual and aggregate retirement behavior. First, we document large differences in individual retirement ages across occupations in U.S. data. We then show that retirement behavior among European workers is strongly correlated with U.S. occupational retirement ages, indicating an inherent association between occupations and retirement that is present across institutional settings. Finally, we find that occupational composition is an important determinant of aggregate retirement behavior across...

January 19, 2024
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08Jan

US. How the Gig Economy Is Reshaping Retirement Planning

As many as 50% of Americans have some sort of side gig, whether this is primarily how they make money, or in addition to a regular job. The gig economy, a phenomenon that may have emerged as a response to the high unemployment rates of the 2008-2009 recession, has become a part of American life, and it’s reshaping retirement. While these gigs offer workers more flexibility and variety, they may also come with some downsides, affecting how financially set people are for retirement. Some...

January 8, 2024
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08Jan

The Four Headwinds of Retirement and How to Combat Them

Dipping your toes in the fresh waters of an exotic beach. Enjoying a gorgeous sunset and your favorite drink as you relax on the back patio. Getting lost in a painting because you have all the time in the world to perfect every brushstroke. Spending more time with family and friends. These are the types of things you dream of indulging in when you retire. You don’t picture worrying about how much money you have in the bank or trying...

January 8, 2024
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04Jan

Millennials vs. Boomers: Which Generation Is Better Prepared for Retirement?

Many boomers are currently retired or on the cusp of retirement, so it wouldn’t be a far-off guess to assume that boomers are better prepared financially for this phase of life. However, a recent Vanguard study found that millennials are actually better prepared for retirement than baby boomers. The study found that millennials who are median-income earners will be able to generate sustainable retirement income equal to 58% of their pre-retirement earnings, while median-income boomers will be able to generate sustainable retirement income...

January 4, 2024
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December 2023
21Dec

US. Social Security rule for beneficiaries who keep working is ‘poorly understood,’ report finds

Workers who turn 62 years old might be tempted to increase their income by claiming Social Security retirement benefits. But those claimants should understand that their Social Security benefits may be temporarily reduced due to the income they earn. That Social Security rule — the retirement earnings test — is "poorly understood by the public," finds a new report from the Social Security Advisory Board, a bipartisan, independent federal agency. Between 20% and 50% of pre-retirees do not know that their monthly benefits might be lowered if they...

December 21, 2023
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18Dec

Retirement Savings: 10 Biggest Financial Shocks For Retirees

Retirement can bring a sense of freedom and relaxation, but it can also come with unexpected financial shocks. Denial is a bad pill to take when retiring, and it’s important to be prepared so you can have your savings ready when these problems arise. Here are the top ten financial surprises that often catch retirees off guard: 1. Higher Healthcare Costs Than Anticipated Many retirees underestimate the cost of healthcare, including long-term care, which isn’t typically covered by Medicare. “the average 65-year-old couple retiring...

December 18, 2023
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15Dec

Retirement Trajectories and Social Security’s Retirement Earnings Test

By Bob Joondeph Chair, Nancy J. Altman, Jagadeesh Gokhale & Amy Shuart Social Security’s retirement earnings test (RET) temporarily withholds or reduces the Social Security benefits of people below full retirement age (FRA) who work and earn above a certain threshold while collecting retirement benefits. Those benefits are increased at FRA to account for the months when benefits were withheld or reduced under the RET. The legislative intent of the RET, which has been part of the law since Social...

December 15, 2023
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15Dec

Subjective survival beliefs and social networks

By Seung Jeonga, Iqbal Owadallya, Steven Habermana & Douglas Wright People's perceptions about their chances of survival are known to deviate from the objective survival probabilites derived statistically from mortality data. This is crucial because it may explain why people save too little, why their retirement plans are inadequate, and why they do not buy financial security products such as life insurance and annuities which could protect them and their family in the event of early death or in old...

December 15, 2023
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