A digest of timely information and insight about finance, investing, and retirement.

Fed report offers picture of retirement readiness situation in America | PlanSponsor
Less than two-fifths of non-retired adults think their retirement savings is on track, whereas over two-fifths think it is not on track and about one-fifth are not sure, according to The Federal Reserve Board’s latest Report on the Economic Well-Being of U.S. Households. One-quarter of non-retired Americans indicate that they have no retirement savings or pension whatsoever.

4 retirement reform bills you need to know about | BenefitsPRO

The U.S. House of Representatives subcommittee on Health, Employment, Labor, and Pensions considered four pieces of legislation that would update the Employee Retirement Income Security Act, which subcommittee Chair Rep. Tim Walberg, R-MI, said was “beginning to show its age.” Proposals that would encourage wider adoption of annuities in 401(k) plans, increase the cash-out limit for former employees, promote Multiple Employer Plans for small employers, and allow participants to get plan documents via email met little opposition from lawmakers and the four panelists invited to testify.

Retirement shortfall: 31 percent of Americans have less than $5,000 saved | USA Today
As a group, Americans have shockingly little saved for retirement. Northwestern Mutual’s 2018 Planning & Progress Study, which surveyed 2,003 adults, found that 21 percent of Americans have nothing saved at all for their golden years, and a third of Americans have less than $5,000. To put that into perspective, it means that 31 percent of U.S. adults could last only a few months on their savings if they had to retire tomorrow.

Three health care costs your retirement plan should address | USA Today Network
Planning for retirement? Don’t forget health care. According to Fidelity Benefits Consulting, a 65-year-old couple retiring in the last year will spend $275,000 on health care, not including long-term care expenses. This can be a real surprise for some consumers. There is a misconception that once a consumer reaches Medicare eligibility, there are no more out-of-pocket health care costs, but that is not the case. Medicare does not cover everything, so planning ahead for health care expenses is a crucial part of a comprehensive retirement strategy.

Closing the gap for retirement haves and have-nots | Forbes
The Employee Retirement Income Security Act (ERISA) was established in 1974 to give employees retirement income security. Why, then, after 40-plus years, are Americans so underprepared for retirement? According to a 2015 study from the Government Accountability Office, “About half of households age 55 and older have no retirement savings (such as in a 401(k) plan or an IRA).” Even those who have saved have saved poorly.

5 retirement rules to live by | Motley Fool

Rules can be annoying sometimes, but many of them, such as “look both ways before crossing the street,” can keep us alive and well. There are some valuable rules related to retirement, too, and if you keep them in mind, your last decades can be much more comfortable than they otherwise would have been. Here are five important things to understand about retirement – and to factor into your planning.