Retirement insights from a Colorado PERA perspective

A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.

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



<a href="https://www.marketwatch.com/story/more-people-say-they-want-to-retire-before-age-60-is-that-wise-2019-01-02" target="_blank" rel="noreferrer noopener">More people are saying they want to retire before 60. Is that wise?</a> | <a href="https://www.marketwatch.com/" target="_blank" rel="noreferrer noopener">MarketWatch</a> When it comes to retiring — especially if you hope to retire early — look before you leap. Americans are apparently more optimistic about their financial prospects, saying they intend to retire on average at age 62, two years sooner than they did five years ago, <a href="https://content.copera.org/retirement-roundup-why-it-may-not-be-wise-to-retire-before-60/" target="_blank" rel="noreferrer noopener">according to MassMutual’s 2018 State of the American Family survey</a>. Additionally, four in 10 intend to retire before age 60, up from 32 percent when the survey was last conducted. This optimism may be misplaced. While financial markets and 401(k) balances have trended higher in the past five years, many Americans may have a false sense of security when it comes to being ready to retire. Pre-retirees should gauge their readiness for retirement by checking, and potentially adjusting, both their financial and emotional state.



<a href="https://content.copera.org/retirement-roundup-why-it-may-not-be-wise-to-retire-before-60/" target="_blank" rel="noreferrer noopener">Index investing: Not as passive as you might think</a> | <a href="https://content.copera.org/retirement-roundup-heres-what-could-take-a-big-bite-out-of-your-nest-egg/" target="_blank" rel="noreferrer noopener">Pensions &amp; Investments</a> Index investing isn’t really passive, according to a University of Toronto faculty member. “Rather than being passive in any meaningful sense, index investing simply represents a form of delegated management,” wrote Adriana Robertson, assistant professor in the University of Toronto law faculty, in a paper, “Passive in Name Only: Delegated Management and ‘Index’ Investing,” issued in November. “Not only are these indexes managed portfolios in the strictly financial sense, by their construction they imply a substantial amount of delegated decision-making authority.”



<a href="https://www.cnbc.com/2019/01/02/retiring-abroad-in-2019-consider-these-top-5-locations.html" target="_blank" rel="noreferrer noopener">Retiring abroad in 2019? Consider these top 5 locations</a> | <a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> If you’re leaving the U.S. in search of a retirement paradise, be sure to look south. That’s because the top retirement haven for globe-trotting retirees is Panama, according to a new report from <a href="https://internationalliving.com/the-best-places-to-retire/?utm_source=pr&amp;utm_medium=pr-organic&amp;utm_campaign=press-release" target="_blank" rel="noreferrer noopener">International Living</a>. Using its Annual Global Retirement Index and evaluating countries based on 13 categories, including the cost of living, retiree benefits and more, the travel website ranked its top destinations for retirees. “There are three or four perennial favorites in the top, including Mexico and Panama,” said Dan Prescher, senior editor at International Living. “These places are just so logistically easy to get to, and they have established expat communities, so they’re easy to settle into,” he said. Just be sure that you give your financial planner and accountant a ring before you board the plane. You should know how a move overseas could <a href="https://www.cnbc.com/2018/04/21/heres-how-to-retire-abroad--without-any-tax-surprises.html" target="_blank" rel="noreferrer noopener">affect your taxes</a>.



<a href="https://www.forbes.com/sites/dorianmintzer/2019/01/02/retirement-is-a-transition-not-a-destination/#38dbb60f98a1" target="_blank" rel="noreferrer noopener">Retirement is a transition, not a destination</a> | <a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> It’s less important to think about what you’re retiring from and more important to think about what you’re retiring to. Some industries no longer have a mandatory retirement age, so the decision may be up to you. Many of you can now negotiate if, when, and how you want to retire. This reality may be both exciting and daunting. It can be complicated if you’re an individual living alone and even more complicated if you’re in a relationship.



<a href="https://www.adn.com/opinions/2018/12/31/if-alaska-is-serious-about-keeping-good-teachers-it-should-return-to-defined-benefit-retirement/" target="_blank" rel="noreferrer noopener">Why Alaska should return to a defined benefit plan to retain good teachers</a> | <a href="https://www.adn.com" target="_blank" rel="noreferrer noopener">Anchorage Daily News</a> The University of Alaska has an ambitious goal to grow its own teachers and double the number of education graduates hired by 2025. Homegrown Alaskan teachers do tend to stay and have longer careers in Alaska. But the state university’s initiative to double the number of locally grown teachers produced and hired in Alaska won’t happen until the Legislature rectifies the retirement structure for these professionals. The public needs to be aware of the many significant financial factors impacting young teachers’ decisions and influencing Alaska’s 20-30 percent teacher turnover rate. Outreach and mentoring will not be enough to reduce it.

Retirement Roundup: Is retiring before age 60 wise?

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



<a href="https://www.washingtonpost.com/business/2018/12/17/retirement-regrets-what-retirees-would-say-their-younger-selves/?noredirect=on&amp;utm_term=.035bb138504a" target="_blank" rel="noreferrer noopener" class="broken_link">Retirement regrets: What retirees would say to their younger selves</a> | <a href="https://www.washingtonpost.com/" target="_blank" rel="noreferrer noopener" class="broken_link">Washington Post</a> Recently, the author asked: If you could, what retirement planning advice would you give to your younger self based on what you know now? She posed this question to retirees and was subsequently overwhelmed with comments from those who wish they could go back and talk to themselves. But the advice doesn’t have to be wasted. There’s still time for others to learn from others’ mistakes.



<a href="https://www.forbes.com/sites/impactpartners/2018/12/18/the-5-fundamentals-of-retirement-planning/#1562dbd87252" target="_blank" rel="noreferrer noopener">The 5 fundamentals of retirement planning</a> | <a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> No matter who you are, retirement brings a time of change. No longer working every day and having to adjust to the financial changes can bring stress to anyone. However, with proper planning, you can look forward to this time with the excitement and the freedom that having a plan provides. Five fundamentals should be considered when planning for retirement.



<a href="https://content.copera.org/retirement-roundup-what-retirees-would-say-to-their-younger-selves/" target="_blank" rel="noreferrer noopener">After 40 years, some say the 401(k) is due for a facelift</a> |<a href="https://content.copera.org/retirement-roundup-heres-what-could-take-a-big-bite-out-of-your-nest-egg/" target="_blank" rel="noreferrer noopener">Pe</a><a href="https://content.copera.org/retirement-roundup-heres-what-could-take-a-big-bite-out-of-your-nest-egg/">nsions &amp; Investments</a> Of all the major milestones the 401(k) has crossed, its most recent stands out. Forty years ago, Congress paved the way for the birth of the nation’s first 401(k) retirement savings plan when legislators added paragraph (k) to Section 401 of the Internal Revenue Code. Since that day on Nov. 6, 1978, the 401(k) has grown and flourished, settling comfortably into households across America. Yet while many say it has aged well, plenty more say that it’s time for a few nips and tucks.



<a href="http://www.governing.com/topics/finance/gov-pension-divestment.html?utm_term=Pension%20Politics%3A%20Should%20States%20Be%20Investing%20in%20Controversial%20Companies&amp;utm_campaign=Pension%20Politics%3A%20Should%20States%20Be%20Investing%20in%20Controversial%20Companies&amp;utm_content=email&amp;utm_source=Act-On+Software&amp;utm_medium=email" target="_blank" rel="noreferrer noopener">Politicizing the portfolio</a> | <a href="http://www.governing.com/" target="_blank" rel="noreferrer noopener">Governing</a> In California and elsewhere, public employee retirement funds are grappling with the issue of ESG investing, a strategy based on an asset’s environmental, social and governance factors. The idea is that firms with sustainable environmental practices, who are good social stewards and have strong governance practices, are more likely to produce stronger returns over the long run. While the notion of ESG investing has been around for decades under one name or another, its current form has taken off in popularity as more sustainably minded millennial and Generation X investors have entered the stock and bond markets. Many governments have positioned themselves as good ESG investments in order to attract these investors. They’ve even generated new vehicles for investments, such as green bonds and pay for success bonds. But as a result, they’re finding themselves awash in controversy, accused of playing politics.



<a href="https://www.cnbc.com/2018/12/17/how-to-manage-debt-ahead-of-retirement.html" target="_blank" rel="noreferrer noopener">Before you retire, pay off that debt</a> | <a href="https://www.cnbc.com" target="_blank" rel="noreferrer noopener">CNBC</a> How you manage debt could have a big impact on how your retirement dreams play out. Four in 10 retirees cite “paying off debt” as a current financial priority—putting it on equal footing with “just getting by to cover basic living expenses” as a top concern, according to a new report from the Transamerica Center for Retirement Studies. Almost three in 10 cite paying down credit card debt as a priority, while 17 percent are focusing on <a href="https://www.cnbc.com/2018/06/26/focus-on-this-debt-for-a-better-retirement.html" target="_blank" rel="noreferrer noopener">mortgage debt</a> and 11 percent some other consumer debt, such as medical bills or <a href="https://www.cnbc.com/2018/11/14/more-older-people-are-bringing-student-debt-into-their-retirement.html" target="_blank" rel="noreferrer noopener">student loans</a>.



<a href="https://www.courier-journal.com/story/news/politics/2018/12/17/kentucky-pension-crisis-reasons-how-we-got-here/2317233002/" target="_blank" rel="noreferrer noopener">Kentucky is in a $43 billion pension hole. Here are some reasons why</a> | <a href="https://www.courier-journal.com/" target="_blank" rel="noreferrer noopener">Courier-Journal</a> In 2000, Kentucky’s public retirement plans were fully funded. Since then, they’ve accumulated nearly $43 billion in debts—making Kentucky’s pension system one of the worst-funded in America. Determining exactly how Kentucky got into this mess is a complicated exercise, partly because the reasons vary among Kentucky’s distinct pension plans for teachers, state government workers and local government workers. But, in simplified terms, there are a few common reasons.

Retirement Roundup: What retirees would say to their younger selves

A digest of timely information and insight about finance, investing, and retirement.
<a href="http://time.com/money/5468239/jack-bogle-index-funds-problem/" target="_blank" rel="noopener noreferrer">Investing legend says there’s a big problem with index funds</a> | <a href="http://time.com" target="_blank" rel="noopener noreferrer">Time</a> 
A generation ago, Jack Bogle invented the index fund. Now he’s warning his creation may have a negative impact on the stock market. Bogle, who founded The Vanguard Group in 1974, <a href="https://www.wsj.com/articles/bogle-sounds-a-warning-on-index-funds-1543504551">wrote recently in The Wall Street Journal</a> that if current trends continue, index funds will soon own half of all U.S. stocks. He thinks that could lead to a dangerous vacuum in corporate governance – with nobody to effectively police the corporate executives who run America’s largest companies. “Public policy cannot ignore this growing dominance, and consider its impact on the financial markets, corporate governance, and regulation,” he wrote. “These will be major issues in the coming era.”
<a href="https://www.plansponsor.com/many-retirees-outspend-planned-budget/" target="_blank" rel="noopener noreferrer">Many retirees outspend planned budget</a> | <a href="https://www.plansponsor.com/" target="_blank" rel="noopener noreferrer">PlanSponsor</a> 
Thirty-nine percent of retirees are spending more than they had expected, according to the “<a href="https://www.copera.org/retirement-roundup-this-investing-expert-says-theres-a-big-problem-with-index-funds" target="_blank" rel="noopener noreferrer" class="broken_link">Global Atlantic Retirement Spending Study: Perception vs. Reality</a>.” Forty-nine percent of pre-retirees believe planning for retirement is more difficult for them than it was for their parents. The typical non-retired U.S. consumer older than 40 spends an average of $2,993 a month, and retirees spend 32 percent less ($2,008), according to Global Atlantic Financial Group. The areas where retirees are spending less are entertainment (29 percent less), dining out (24 percent less), traveling (18 percent less) and on housing (23 percent less on mortgage payments and 22 percent less on rent).
<a href="https://www.fool.com/investing/2018/12/01/dont-retire-early-unless-you-answer-yes-to-these-4.aspx" target="_blank" rel="noopener noreferrer">Don’t retire early unless you can answer “yes” to these 4 questions</a> | <a href="https://www.fool.com/" target="_blank" rel="noopener noreferrer">Motley Fool</a> 
Retiring early is a dream for many, but jumping the gun by retiring too early can leave you pinching pennies at the end of your life when your savings run dry. Before you decide to retire, it’s important to make sure all of your finances are in order to avoid this grim picture. The four questions you should be able to answer “yes” to if you’re truly ready for a premature retirement relate to your debt, savings, health care plan, and retirement account withdrawals.
<a href="https://www.denverpost.com/2018/12/01/americans-retirement-age-working/" target="_blank" rel="noopener noreferrer">By choice or necessity, more adults are working past retirement age</a> | <a href="https://www.denverpost.com" target="_blank" rel="noopener noreferrer">Denver Post</a> 
A National Press Foundation seminar in Washington, D.C., earlier this year explored the topic of why Americans are working longer. “The population is getting older, fertility rates are quite low, and people are living longer,” Richard Johnson, director of the program on retirement policy at the <a href="https://www.urban.org/policy-centers/cross-center-initiatives/program-retirement-policy" target="_blank" rel="noopener noreferrer" class="broken_link">Urban Institute</a>, said during the seminar. Johnson provided several reasons for the change in the labor landscape, including tightening of labor markets, pension uncertainty, and the availability of less physically demanding jobs.
<a href="https://www.cnbc.com/2018/11/28/most-struggle-to-save-for-retirement-no-matter-age-gender-or-income.html" target="_blank" rel="noopener noreferrer">Everyone is having some trouble saving for retirement</a> | <a href="https://www.cnbc.com" target="_blank" rel="noopener noreferrer">CNBC</a> 
In a perfect world, saving for retirement would be easy. That world assumes everyone makes an adequate salary, can afford all their necessities and a few frills, and feels comfortable setting aside some money for the future. Yet the reality is that retirement saving is not easy for everyone. Lower income and debt, whether from credit cards or student loans, are two items that can make it difficult to save for the future. When 30 percent of people <a href="https://learn.stashinvest.com/retirement-in-america-2018-survey" target="_blank" rel="noopener noreferrer">surveyed by Stash</a> feel financially squeezed, they start eyeing retirement contributions as a place to cut back. The investing app surveyed more than 2,100 people online in November.
<a href="https://www.forbes.com/sites/rcarson/2018/12/09/are-you-retirement-ready-easy-fixes-for-4-of-the-most-common-retirement-planning-mistakes/#6fb13bc926a2" target="_blank" rel="noopener noreferrer">Are you retirement ready? Easy fixes for 4 common planning mistakes</a> | <a href="https://www.forbes.com" target="_blank" rel="noopener noreferrer">Forbes</a> 
The 2018 <a href="https://www.ebri.org/retirement/retirement-confidence-survey" target="_blank" rel="noopener noreferrer">Retirement Confidence Survey (RCS)</a> conducted by the <a href="http://www.ebri.org" target="_blank" rel="noopener noreferrer">Employee Benefit Research Institute</a> (EBRI) and research firm <a href="https://greenwaldresearch.com/" target="_blank" rel="noopener noreferrer">Greenwald &amp; Associates</a>, found that only 32 percent of retirees are very confident in their ability to live comfortably throughout retirement. But what does that mean for the remaining 68 percent of retirees who are less confident? Equally important, what does it mean for working Americans actively saving for life in retirement?
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Retirement Roundup: This investing expert says there’s a big problem with index funds

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



<a href="https://www.cnbc.com/2018/11/02/if-youre-planning-to-retire-in-2019-heres-how-to-make-sure-youre-prepared.html" target="_blank" rel="noreferrer noopener">If you’re planning to retire in 2019, here’s how to prepare</a> | <a href="https://www.cnbc.com" target="_blank" rel="noreferrer noopener">CNBC</a> If you’re among the millions of older U.S. workers who will retire from full-time work in 2019, now’s a good time to make sure you’re truly prepared. Whether you’re viewing the next phase of life as retirement, semi-retirement or an unknown adventure, experts say the transition should get more than just a passing once-over. As you prepare to say farewell to your coworkers next year and embark on the next leg of life’s journey, experts recommend taking time to make sure you’ve covered all your financial bases.



<a href="https://www.forbes.com/sites/johnwasik/2018/11/19/the-two-most-powerful-ways-to-remain-mentally-sharp-in-retirement/#8847d0322261" target="_blank" rel="noreferrer noopener">The two most powerful ways to remain mentally sharp in retirement</a> | <a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> For many, the greatest fear in retirement &#8212; other than not having enough money &#8212; is losing your noodle. The good news, though, is that cognitive decline isn’t inevitable. There are ways, according to recent research, to offset mental incapacity. Getting regular exercise and volunteering are both good starting points for your long-term wellness plan.



<a href="https://www.investopedia.com/advisor-network/articles/how-plan-retirement-solo-ager/" target="_blank" rel="noreferrer noopener">How to plan for retirement as a “solo ager”</a> | <a href="https://www.investopedia.com" target="_blank" rel="noreferrer noopener">Investopedia</a> Baby Boomers who are single and childless, known as “solo agers,” face unique retirement planning challenges that need to be addressed. Americans’ approach to aging has rapidly changed in recent years. This is the result of the aging <a href="https://www.prb.org/aging-unitedstates-fact-sheet/" target="_blank" rel="noreferrer noopener">Baby Boomer population</a>, who are entering their 80s and 90s within the next few decades, and longer <a href="https://www.brookings.edu/blog/future-development/2016/03/23/boundless-life-expectancy-the-future-of-aging-populations/" target="_blank" rel="noreferrer noopener">life expectancies</a>. Medical advances are leading to healthier and more active lifestyles in retirement. There are societal policy implications with these demographic trends, from long-term care to strains on public pensions. And increased divorce rates and lower birth rates are colliding to create financial challenges for a growing number of Americans.



<a href="https://www.plansponsor.com/workers-not-believe-social-security-pensions-will-secure-retirement-income/" target="_blank" rel="noreferrer noopener">Workers skeptical about Social Security, pension income</a> | <a href="https://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PlanSponsor</a> In today’s retirement age, Social Security and pensions are top sources of income for most retirees. However, as fears of <a href="https://www.plansponsor.com/as-pensions-fade-retirees-will-need-more-savings/" target="_blank" rel="noreferrer noopener">dwindled pension funding</a> and <a href="https://www.plansponsor.com/many-millennials-gen-xers-dont-expect-receive-social-security/" target="_blank" rel="noreferrer noopener">reduced Social Security</a> intensify, those approaching retirement are sourcing alternative income options, says a new LIMRA Secure Retirement Institute (LIMRA SRI) <a href="https://www.limra.com/Posts/PR/News_Releases/New_LIMRA_Secure_Retirement_Institute_Research_Shows_Consumers_Buy_Annuities_to_Create_Income_for_Retirement.aspx" target="_blank" rel="noreferrer noopener">report</a>. According to the report, 49 percent of pre-retirees and 32 percent of younger workers say their post-work life income will emerge from employer-sponsored retirement plans, individual retirement accounts (IRAs), and other savings vehicles. Four in 10 pre-retirees and over half (53 percent) of workers ages 40 to 54 believe their primary source of revenue will originate from their 401(k), IRA and <a href="https://content.copera.org/retirement-roundup-if-youre-planning-to-retire-in-2019-heres-how-to-prepare/" target="_blank" rel="noreferrer noopener">additional savings</a>.



<a href="http://time.com/5440542/401k-retirement/" target="_blank" rel="noreferrer noopener">As the 401(k) turns 40, we must change how Americans save for retirement</a> | <a href="http://time.com/" target="_blank" rel="noreferrer noopener">Time</a> In its first four decades, the 401(k) has lived an unexpectedly glamorous life. At the time of its enactment, lawmakers anticipated that it would exist in obscurity, affecting only a small number of corporate executives. Forty years later, <a href="https://www.irs.gov/retirement-plans/401k-plans" target="_blank" rel="noreferrer noopener">401(k)</a> has become possibly the most famous section of the Internal Revenue Code, with well over 90 million Americans personally participating in 401(k)s or similar defined contribution plans. But it’s also facing something of a midlife crisis.

Retirement Roundup: If you’re planning to retire in 2019, here’s how to prepare

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



<a href="https://www.plansponsor.com/health-care-costs-will-take-big-chunk-retirement-savings/?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Newsdash" target="_blank" rel="noreferrer noopener">Health care costs will take a big chunk out of retirement savings</a> | <a href="https://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PlanSponsor</a> HealthView Services’ <a href="https://www.copera.org/retirement-roundup-health-care-costs-will-take-a-big-chunk-out-of-retirement-savings" target="_blank" rel="noreferrer noopener" class="broken_link">2018 Retirement Healthcare Costs Data Report</a> shows overall in-retirement health care inflation declining to a projected 4.22 percent compared to the 5.47 percent in last year’s Data Report. This change is primarily driven by a slower rate of increase in expected drug costs. The Retirement Healthcare Cost Index reveals the impact of expected health care costs on retirement budgets: A healthy 66-year-old couple retiring today will need 48 percent of their lifetime Social Security benefits to address total lifetime health care expenses, while a 45-year-old couple will need 63 percent.



<a href="https://www.forbes.com/sites/nextavenue/2018/10/08/5-retirement-pitfalls-youll-want-to-avoid/#6360568a664a" target="_blank" rel="noreferrer noopener">Five retirement pitfalls you’ll want to avoid</a> |&nbsp;<a href="https://www.forbes.com/">Forbes</a> Five retirement pitfalls reflect the results of more than 1,000 retiree interviews and observations of retirees defaulting to a retirement lifestyle lacking excitement, positive challenges, contribution in significant ways, personal growth, and, ultimately, fulfillment. Those who understand the circumstances, situations and events they may encounter in retirement have a better chance of avoiding the snags and of feeling fulfilled in the third chapter of their life.



<a href="https://www.fool.com/retirement/2018/10/16/clueless-on-what-to-save-for-retirement-youre-in-g.aspx" target="_blank" rel="noreferrer noopener">Clueless about what to save for retirement? You’re in good company</a> | <a href="https://www.fool.com/" target="_blank" rel="noreferrer noopener">Motley Fool</a> We’re told time and time again about the importance of saving for retirement, especially because <a href="https://www.fool.com/retirement/2017/06/26/can-the-average-american-live-off-social-security.aspx" target="_blank" rel="noreferrer noopener">Social Security alone</a> won’t be enough to pay the bills. The problem, however, is nailing down just how much money to accumulate. After all, there’s no magic number that guarantees financial security in retirement, and while it stands to reason that you’re better off saving $3 million than $300,000, there’s clearly a pretty sizable gap in between. In fact, 60 percent of Americans say they really have no idea how much to save for retirement, according to <a href="https://content.copera.org/retirement-roundup-your-401k-is-just-one-piece-of-the-retirement-puzzle/" target="_blank" rel="noreferrer noopener">data from TD Ameritrade</a>. But some general guidelines could help.



<a href="https://www.investopedia.com/retirement/how-sabotage-your-retirement/" target="_blank" rel="noreferrer noopener">How to sabotage your retirement</a> | <a href="https://www.investopedia.com/" target="_blank" rel="noreferrer noopener">Investopedia</a> According to the <a href="https://www.investopedia.com/terms/f/federalreservebank.asp" target="_blank" rel="noreferrer noopener">Federal Reserve</a>, less than 40 percent of non-retired adults believe their retirement savings are on track. But none of the remaining 60 percent likely set out to sabotage their retirement. Unfortunately, it’s all too easy to make the wrong financial moves when preparing for retirement.



<a href="https://www.cnbc.com/2018/10/16/two-ways-to-defray-this-retirement-risk-choose-whats-right-for-you.html" target="_blank" rel="noreferrer noopener">Two ways to defray this retirement risk: How to choose what’s right for you</a> | <a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> Here’s one retirement risk that you can’t quite save for: The possibility that you’ll need long-term care either at home or at a professional facility. Individuals who are now at retirement’s doorstep can expect to live and plan for another two decades of life. Perhaps the biggest threat looming for these individuals is the possibility that they may require long-term care as they age — and that they’ll be unable to pay for it.



<a href="https://www.forbes.com/sites/tomhager/2018/10/01/understanding-social-security-for-the-public-sector-the-government-pension-offset/#7a3ba35b3bf3" target="_blank" rel="noreferrer noopener">Understanding Social Security for the public sector: The government pension offset</a>&nbsp;| <a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> Fair or not, those working in the public sector are treated differently than private-sector employees by the Social Security system, primarily through two rules that may reduce their Social Security benefits – the <a href="https://www.forbes.com/sites/tomhager/2018/09/11/social-security-for-the-public-sector-part-1/#527f70887655" target="_blank" rel="noreferrer noopener">Windfall Elimination Provision (WEP)</a> and the Government Pension Offset (GPO).

Retirement Roundup: Health care costs will take a big chunk out of retirement savings

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



<a href="http://time.com/money/5398093/every-retiree-should-make-this-tax-move-right-now-according-to-a-new-warning-from-the-irs" target="_blank" rel="noreferrer noopener">Every retiree should make this tax move right now, according to a new warning from the IRS</a> | <a href="http://www.time.com/money" target="_blank" rel="noreferrer noopener">Time-Money</a> The IRS has a message for retirees: make sure you’re paying enough federal income tax. The Tax Cuts and Jobs Act of last December changed the income tax calculations for most filers, and employees aren’t the only ones who need to double check they’re withholding the right amount. On average, most retirees will likely see a decrease in tax liability and owe slightly less, although it varies by individual. Retirees who receive monthly pension income or annuity checks may well need to increase or lower the amount of taxes they pay. The easiest way to simplify your tax payments and get back to enjoying retirement is to use the <a href="https://apps.irs.gov/app/withholdingcalculator/" target="_blank" rel="noreferrer noopener">IRS’ online withholding calculator</a>, which incorporates the new tax law rule changes.



<a href="https://www.planadviser.com/newly-suggested-strategy-managing-health-costs-retirement/" target="_blank" rel="noreferrer noopener">A new strategy for managing health costs in retirement</a> |&nbsp;<a href="https://www.planadviser.com" target="_blank" rel="noreferrer noopener">PlanAdviser</a> Health care cost projections illustrate how managing medical conditions through simple, positive lifestyle choices can result in measurable savings for health expenses in retirement, according to a new report from Healthy Capital in collaboration with the Insured Retirement Institute. In addition, the report explains how utilizing annuities to provide guaranteed income helps address Americans’ concern for affording health care in retirement. A case study details how utilizing the savings through condition management can fund staggered annuities and create a lifetime income stream.



<a href="https://www.washingtonpost.com/business/2018/10/01/yes-you-should-pay-off-your-mortgage-before-retiring/?utm_term=.03ffb0b024d4" target="_blank" rel="noreferrer noopener" class="broken_link">Yes, you should pay off your mortgage before retiring</a> |&nbsp;<a href="https://www.washingtonpost.com/" target="_blank" rel="noreferrer noopener" class="broken_link">Washington Post</a> Four reasons why it makes sense—with one caveat: You shouldn’t empty out your savings to pay off your mortgage. That is not a wise financial move. You don’t want to end up house rich and cash poor, meaning all your money is locked into the equity in your home.



<a href="https://www.cnbc.com/2018/09/27/americans-think-61-is-the-ideal-age-to-retiremoney-experts-disagree.html" target="_blank" rel="noreferrer noopener">Americans think 61 is the ideal age to retire; is it?</a> |&nbsp;<a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> Americans think the ideal age to retire is 61. Unfortunately, it may be wise to wait longer. In a recent&nbsp;<a href="https://www.bankrate.com/personal-finance/smart-money/experts-when-to-reach-financial-milestones/" target="_blank" rel="noreferrer noopener">survey</a> from financial website Bankrate, 10 certified financial planners from different parts of the country said that 63 is a more realistic age for retirement, and many experts believe you should wait until you’re at least 70.



<a href="https://www.forbes.com/sites/johnwasik/2018/10/01/3-easy-ways-to-boost-retirement-emergency-savings-by-30/#4087907a50c8" target="_blank" rel="noreferrer noopener">Three easy ways to boost retirement, emergency savings by 30%</a> |&nbsp;<a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> No, the lottery isn’t the answer, nor is thinking positive thoughts. If you want to save more, you have to spend less. Stay home more. It’s that simple. Just go out to eat and drink less. It really adds up. The latest&nbsp;<a href="https://www.bankrate.com/personal-finance/smart-money/financial-vices-september-2018/?utm_source=Think+Glink+Newsletter&amp;utm_campaign=63986965af-EMAIL_CAMPAIGN_2018_09_20_04_38&amp;utm_medium=email&amp;utm_term=0_bb01ffa411-63986965af-137683530" target="_blank" rel="noreferrer noopener">bankrate.com</a>&nbsp;survey lays it out: Nearly four out of 10 Americans polled go out three times a week to eat or for coffee or drinks. They spend more than $2,400 on restaurant meals and takeout meals alone.



<a href="https://www.cnbc.com/2018/09/28/why-these-teachers-retirement-plans-arent-making-the-grade.html" target="_blank" rel="noreferrer noopener">Why these teachers’ retirement plans aren’t making the grade</a> | <a href="http://www.cnbc.com" target="_blank" rel="noreferrer noopener">CNBC</a>Here’s what you need to know about 403(b) plans for public school workers. Other deferred compensation plans for public employees such as 401(k)s or 457 plans may be available to teachers in public schools. Find out if you have access, and see how the costs compare to your 403(b).

Retirement Roundup: The tax move every retiree should make right now

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



<a href="https://money.cnn.com/2018/09/17/pf/things-to-do-before-you-retire/index.html" target="_blank" rel="noreferrer noopener">Five things you must do before you retire</a> |&nbsp;<a href="https://money.cnn.com/" target="_blank" rel="noreferrer noopener">CNN Money</a> If you’re looking forward to retirement, you’re not alone. Countless workers dream of leaving their jobs behind and enjoying the freedom of unstructured days. But before you pull the trigger on retirement, be sure to tackle five critical steps so you don’t come to regret your decision later on.



<a href="https://www.cnbc.com/2018/09/10/post-financial-crisis-retirees-still-struggle-to-find-reliable-retirement-income.html" target="_blank" rel="noreferrer noopener">A decade after the financial crisis, this retirement dilemma still hasn’t been solved</a> |&nbsp;<a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> When it comes to how individual investors have fared since the financial crisis, it’s still largely a tale of the haves and have-nots. To see evidence of this, look no further than where individuals are when it comes to the biggest financial goal of all: retirement. As news of 401(k) plan millionaires hits the headlines, other individuals are still left picking up the pieces after the last decade’s precipitous market drop decimated their nest egg or a job loss led to them to raid their retirement funds.



<a href="https://www.cbsnews.com/news/hsa-health-savings-accounts-many-benefits-for-retirement-savings/" target="_blank" rel="noreferrer noopener">Many savers missing out on the HSA’s benefits for retirement</a> |&nbsp;<a href="https://www.cbsnews.com/moneywatch/" target="_blank" rel="noreferrer noopener">CBS MoneyWatch</a> One of the best places to accumulate assets for retirement is a health savings account, or HSA. But many Americans aren’t getting the message. HSA account holders have accumulated over $51 billion in these&nbsp;<a href="https://www.cbsnews.com/news/the-many-benefits-of-health-savings-accounts/" target="_blank" rel="noreferrer noopener">special saving plans</a>&nbsp;– a 20.4 percent increase since last year. And the number of HSAs has grown over 11 percent, totaling 23.4 million accounts, according to the&nbsp;<a href="http://www.devenir.com/research/2018-midyear-devenir-hsa-research-report/" target="_blank" rel="noreferrer noopener">2018 Midyear Devenir HSA Market Survey</a>.&nbsp;But most people use their HSA as a pass-through and are getting only the advantage of a tax-free way to pay for out-of-pocket medical costs. So they are missing out on these accounts’ most valuable feature: tax-free growth of invested HSA assets over long periods of time.



<a href="https://www.marketwatch.com/story/even-people-with-pensions-work-into-their-retirement-years-2018-09-14" target="_blank" rel="noreferrer noopener">Even people with pensions work into their retirement years</a> |&nbsp;<a href="https://www.marketwatch.com/" target="_blank" rel="noreferrer noopener">MarketWatch</a> Having guaranteed income for retirement in the form of a pension is a dream for many workers, but workers may still change jobs or prolong their working years before they retire. Transitioning into retirement — the actual act of moving away from the workforce — isn’t all that different among public and private sector workers. Even though many public workers get guaranteed income in the form of a pension during retirement, they still tend to take another job or reduce their hours to part-time before fully embracing retirement. Private workers, on the other hand, similarly work into their retirement years, though they may not have the option if they haven’t saved enough for their retirement.



<a href="https://www.benefitnews.com/list/25-best-cities-for-retirement" target="_blank" rel="noreferrer noopener">The 25 best cities for retirement</a> |&nbsp;<a href="https://www.benefitnews.com/" target="_blank" rel="noreferrer noopener">BenefitNews</a> There might be one fairly simple and smart way to ensure employees have enough money in retirement: Relocating to a city that has a lower cost of living and can stretch post-career savings. WalletHub, an online personal finance site, researched the Best &amp; Worst Places to Retire by comparing 46metrics across more than 180 cities, including cost of health care, affordability, things to do and quality of life. (Spoiler: Denver is #4!)



<a href="https://www.denverpost.com/2018/09/11/social-security-comes-up-short-in-colorado/">Study: Social Security doesn’t stretch far in Colorado</a> |&nbsp;<a href="https://www.denverpost.com/">Denver Post</a> Social Security recipients collect $1,295 a month on average, but that payment won’t cover&nbsp;basic living costs in any state, including Colorado, according to a&nbsp;<a href="https://howmuch.net/articles/cost-of-living-social-security" target="_blank" rel="noreferrer noopener">survey from HowMuch.net and GoBankingRates</a>. That monthly payment covers only 36.3 percent of basic living costs in Colorado, ranking the state 11th worst for coming up short. Hawaii, California, Massachusetts, Alaska and New York are the toughest states for those trying to get buy on just Social Security, while Arkansas, West Virginia, Oklahoma, Alabama and Mississippi are where payments go the furthest.

Retirement Roundup: Five things you must do before you retire

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



<a href="http://www.verywellhealth.com/health-insurance-premium-increase-2615099" target="_blank" rel="noreferrer noopener">Why does my health insurance premium increase each year?</a> |&nbsp;<a href="http://www.verywellhealth.com" target="_blank" rel="noreferrer noopener">Verywell Health</a> Typically as fall approaches, you begin to hear from your employer’s human resources department or from the insurers and payers who oversee your health coverage about how much you’ll have to pay for coverage next year. And each year, it seems like those premiums increase, sometimes by double-digit percentages. Why is health insurance so expensive? And why do you have to pay more every year, even if you’re healthy? Simply put, health insurance premiums go up because medical costs increase.



<a href="https://www.marketwatch.com/story/dont-confuse-public-pension-cost-with-generosity-2018-08-14" target="_blank" rel="noreferrer noopener">Opinion: Don’t confuse public pension cost with generosity</a> |&nbsp;<a href="https://www.marketwatch.com/" target="_blank" rel="noreferrer noopener">MarketWatch</a> In a recent editorial,&nbsp;<a href="https://www.wsj.com/articles/why-your-pension-is-doomed-1532042985" target="_blank" rel="noreferrer noopener">The Wall Street Journal reports</a>&nbsp;on state and local pension liabilities as a percentage of state GDP and concludes that politicians have made excessive pension promises. In fact, pension costs are going up, but the question is whether the rising costs are a result of benefit generosity or of underfunding. The answer is underfunding.



<a href="https://www.marketplace.org/2018/08/13/economy/retirement-scams" target="_blank" rel="noreferrer noopener">Scammers are targeting retirement savings. Here’s how to fight them</a> |&nbsp;<a href="https://www.marketplace.org/" target="_blank" rel="noreferrer noopener">Marketplace</a> As we age, one of the things that sometimes gets lost in the mix is how we&#8217;ve handled our money. Did we save enough? What will our retirement be like? And if that&#8217;s not enough, now add another worrisome element to the mix: retirement scammers. Con artists of all types are finding ways to sap the savings of aging retirees. Senior economics correspondent Chris Farrell addresses what the government, the financial industry and you can do about it.



<a href="https://www.cnbc.com/2018/08/14/best-and-worst-cities-for-retirement.html" target="_blank" rel="noreferrer noopener">Best and worst cities for retirement</a> |&nbsp;<a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> If you&#8217;re looking for an affordable retirement, the city in which you decide to live should be an important factor. Personal finance website WalletHub recently ranked 182 U.S. cities based on their affordability, activities, quality of life and health care. Each city was graded on a 100-point scale, with 100 representing the highest score.



<a href="https://www.plansponsor.com/half-pre-retirees-expect-return-work/" target="_blank" rel="noreferrer noopener">Half of pre-retirees expect to return to work</a> |&nbsp;<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PlanSponsor</a> Fifty-three percent of workers who expect to retire in the next five years think it is likely they will return to work, according to a survey by Home Instead, Inc. Earning additional income was their primary reason for returning to work, cited by 67 percent, followed by fighting boredom (44 percent) and keeping their minds sharp (22 percent). Sixty-eight percent of those approaching retirement say they plan to work in a different industry and 65 percent of retirees who have returned to work say the same.



<a href="https://www.marketwatch.com/story/this-is-how-to-have-the-perfect-retirement-2018-08-15" target="_blank" rel="noreferrer noopener">This is how to have the “perfect” retirement</a> |&nbsp;<a href="https://www.marketwatch.com" target="_blank" rel="noreferrer noopener">MarketWatch</a> Most people look forward to retirement as a time to forget their worries, live without a boss or a commute and to perhaps just kick back whenever and however the urge appears. But in real life, that fantasy isn’t very common — and it may not be all it’s cracked up to be. There’s no one-size-fits-all formula for a good retirement, because every situation is in some ways unique.



<a href="http://www.investmentnews.com/article/20180809/BLOG05/180809929/social-security-finances-worsen-as-reliance-on-the-program-increases" target="_blank" rel="noreferrer noopener" class="broken_link">Social Security finances worsen as reliance on the program increases</a> | <a href="http://www.investmentnews.com" target="_blank" rel="noreferrer noopener">Investment News</a> Two new reports from the University of Pennsylvania’s Wharton School of Business document an increase in American retirees’ reliance on Social Security income over the past 25 years as the program’s long-term finances deteriorate at a faster pace than officially projected by the Social Security Administration.

Retirement Roundup: Why do health insurance premiums increase each year?

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



<a href="https://www.foxbusiness.com/economy/10-mistakes-that-can-sabotage-your-retirement-savings" target="_blank" rel="noreferrer noopener">10 mistakes that can sabotage your retirement savings</a> |&nbsp;<a href="https://www.foxbusiness.com" target="_blank" rel="noreferrer noopener">Fox Business</a> According to a Gallup poll, 51percent of non-retired Americans do not think they will have enough money to live comfortably in retirement. Retired Americans are more confident, with 78 percent saying that they have enough money to live comfortably. However, wherever you are on the spectrum, no matter if you are just starting to save for retirement or are already retired, there are mistakes that can sabotage your&nbsp;<a href="https://www.foxbusiness.com/category/retirement-planning" target="_blank" rel="noreferrer noopener">retirement</a>&nbsp;nest egg.



<a href="http://www.pewtrusts.org/en/research-and-analysis/articles/2018/07/26/financial-stress-test-of-colorado-pension-system-spurs-reform" target="_blank" rel="noreferrer noopener">Financial “stress test” of Colorado pension system spurs reform</a> |&nbsp;<a href="http://www.pewtrusts.org" target="_blank" rel="noreferrer noopener">Pew Charitable Trusts</a> The pension reforms recently enacted in Colorado demonstrate how states can benefit from a tool called stress testing to shore up financially troubled retirement systems. The legislation&nbsp;<a href="https://leg.colorado.gov/bills/sb18-200" target="_blank" rel="noreferrer noopener">signed</a>&nbsp;June 4 by Governor John Hickenlooper (D) includes steps similar to those taken by other states coping with significantly underfunded public pension systems, including raising the retirement age for new workers and increasing employee contributions. But Colorado’s approach also reflects the state’s leading role in using stress testing to more precisely assess the government’s ability to fulfill benefit promises made to workers.



<a href="https://www.cnbc.com/2018/08/02/five-european-cities-where-you-can-retire-on-35000-a-year.html" target="_blank" rel="noreferrer noopener">5 European cities where you can retire for $35,000 per year</a> |&nbsp;<a href="https://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> Living well on less is a constant in retirement planning. If life in the U.S. seems as if it would overstretch your assets, you might want to consider moving abroad. Moving overseas takes planning and research. You&#8217;ll want to check visa and residency requirements as well as health-care access. Remember, you&#8217;ll still be taxed as a U.S. citizen by Uncle Sam.



<a href="https://content.copera.org/retirement-roundup-10-mistakes-that-can-sabotage-your-retirement-savings/" target="_blank" rel="noreferrer noopener">Never retire: Why people are still working in their 70s and 80s</a> |&nbsp;<a href="https://content.copera.org/retirement-roundup-the-confusion-surrounding-retirement-planning/" target="_blank" rel="noreferrer noopener">US News</a> It&#8217;s not uncommon these days for baby boomers to&nbsp;<a href="https://www.copera.org/retirement-roundup-putting-pera-on-a-path-to-prosperity" target="_blank" rel="noreferrer noopener" class="broken_link">continue to work</a>&nbsp;well into their 60s, 70s or even 80s. Some decide to continue working because they need the money. Others love what they do and can&#8217;t imagine not doing it anymore. Or, they just need to stay busy. With continued improvements in health care and&nbsp;<a href="https://www.copera.org/retirement-roundup-10-mistakes-that-can-sabotage-your-retirement-savings" target="_blank" rel="noreferrer noopener" class="broken_link">life expectancy in the U.S. steadily increasing</a>, people can spend as long in retirement as they spent working.



<a href="https://www.copera.org/retirement-roundup-10-mistakes-that-can-sabotage-your-retirement-savings" target="_blank" rel="noreferrer noopener" class="broken_link">Retired Texas teachers face giant hurdle to pension boost</a> |&nbsp;<a href="https://www.statesman.com/" target="_blank" rel="noreferrer noopener">Austin American-Statesman</a> To give retired teachers a chance at a pension bump — something that hasn’t happened in more than a decade for some — the Legislature will have to approve at least an additional $786 million in funding annually, according to new data from the Teacher Retirement System of Texas. Teachers say the new figure points to the need for the state to step up its contributions to the $151 billion pension fund, but conservatives say state lawmakers should consider restructuring the pension fund to make it more akin to a 401(k), a move unpopular among teacher groups.



<a href="http://www.nytimes.com/2018/08/05/business/bankruptcy-older-americans.html" target="_blank" rel="noreferrer noopener">‘Too Little Too Late’: Bankruptcy Booms Among Older Americans</a> |&nbsp;<a href="http://www.nytimes.com" target="_blank" rel="noreferrer noopener">The New York Times</a> The rate of people 65 and older filing for bankruptcy is three times what it was in 1991, and the same group accounts for a far greater share of all filers. Signs of trouble — vanishing pensions, soaring medical expenses, inadequate savings — have been building for years. Now, new research sheds light on the scope of the problem, suggesting that the bankruptcy surge is driven by a three-decade shift of financial risk from government and employers to individuals, who are bearing an ever-greater responsibility for their own financial well-being as the social safety net shrinks.

Retirement Roundup: 10 mistakes that can sabotage your retirement savings

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



<a href="https://www.forbes.com/sites/forbesfinancecouncil/2018/06/06/retirement-planning-what-happens-after-saving/#4b29d28e371a" target="_blank" rel="noreferrer noopener">Retirement planning: What happens after saving?</a> |&nbsp;<a href="https://www.forbes.com/" target="_blank" rel="noreferrer noopener">Forbes</a> For most of us, retirement is something we dream about for many decades. And hopefully, we accompany those dreaming years with the discipline to save as much as we can for when the time finally arrives.&nbsp;But no matter how large our investment portfolio may be when it’s time to retire, there’s one additional step we should possibly consider: holding on to the budgeting approach that may have worked so well during our working years.



<a href="https://www.cnbc.com/2018/06/04/debt-levels-could-delay-your-retirement.html" target="_blank" rel="noreferrer noopener">This growing problem threatens to delay your retirement</a> |&nbsp;<a href="http://www.cnbc.com/" target="_blank" rel="noreferrer noopener">CNBC</a> Americans today are more likely to reach retirement in debt than ever before. That&#8217;s the takeaway from&nbsp;<a href="https://www.aeaweb.org/articles?id=10.1257/pandp.20181117" target="_blank" rel="noreferrer noopener">a new study</a>&nbsp;that appeared last month in the <a href="https://www.aeaweb.org/" target="_blank" rel="noreferrer noopener">American Economic Association Papers and Proceedings</a>. The researchers compared debt levels among different generations when they were between the ages of 56 and 61 to learn how the financial standing of people bracing to exit the workforce has changed over time, and how much the Great Recession is to blame.



<a href="https://www.bloomberg.com/news/articles/2018-06-05/not-prepared-for-retirement-here-s-a-solution-don-t-retire" target="_blank" rel="noreferrer noopener" class="broken_link">Not prepared for retirement? Here’s a solution: Don’t retire</a> |&nbsp;<a href="https://www.bloomberg.com/" target="_blank" rel="noreferrer noopener" class="broken_link">Bloomberg</a> Lots of people around the world aren’t prepared for retirement, as Suzanne Woolley of Bloomberg News&nbsp;<a href="https://www.bloomberg.com/news/articles/2018-05-29/the-world-isn-t-prepared-for-retirement" target="_blank" rel="noreferrer noopener" class="broken_link">ably explained</a>&nbsp;recently. There’s one obvious&nbsp;solution to that problem: Postpone your retirement. A recent academic&nbsp;<a href="http://www.nber.org/papers/w24226">study</a>&nbsp;called&nbsp;The Power of Working Longer,&nbsp;<a href="https://www.nytimes.com/2018/06/01/business/thinking-about-retirement-consider-working-a-little-longer.html" target="_blank" rel="noreferrer noopener">cited</a>&nbsp;in The New York Times, finds that working just three to six months longer can raise your retirement income as much as increasing your savings by 1 percent every year for the last 30 years of your career.



<a href="https://www.washingtonpost.com/news/get-there/wp/2018/06/04/your-retirement-may-be-saved-by-a-side-hustle/?utm_term=.f030d3887793" target="_blank" rel="noreferrer noopener" class="broken_link">Your retirement may be saved by a side hustle</a>&nbsp;|&nbsp;<a href="https://www.washingtonpost.com/" target="_blank" rel="noreferrer noopener" class="broken_link">Washington Post</a> For those heading into retirement or already retired, a side hustle in the gig economy may just be what you need to boost your savings. In the “gig economy,” people work as freelancers, contractors or temps. Often the paychecks are steady and retirement benefits don’t come with the gig. Yet, it’s this way of working that can help boost an anemic retirement account or increase the income of a retiree. By 2020, more than 40 percent of the workforce will consist of people working in the gig economy, according to a&nbsp;<a href="https://http-download.intuit.com/http.intuit/CMO/intuit/futureofsmallbusiness/intuit_2020_report.pdf" target="_blank" rel="noreferrer noopener">report</a>&nbsp;from Intuit.



<a href="https://www.marketwatch.com/story/reality-check-what-the-average-retiree-spends-a-month-2018-06-05" target="_blank" rel="noreferrer noopener">Reality check: Here’s what the average retiree spends every month</a> |&nbsp;<a href="https://www.marketwatch.com/" target="_blank" rel="noreferrer noopener">MarketWatch</a> The gray-haired couple sipping champagne on a beach at sunset. Grandpa teaching the grandkids how to fish at the family lake house. Are these scenes of carefree times in retirement based on financial reality? According to the latest Bureau of Labor Statistics data, which is based on 2016 figures, “older households” — defined as those run by someone 65 and older — spend an average of $45,756 a year, or roughly $3,800 a month. That’s about $1,000 less than the monthly average spent by all U.S. households combined.



<a href="https://tickertape.tdameritrade.com/retirement/considering-retirement-abroad-16684" target="_blank" rel="noreferrer noopener">Looking to retire abroad? How to choose a location</a> |&nbsp;<a href="https://tickertape.tdameritrade.com/" target="_blank" rel="noreferrer noopener">TD Ameritrade</a> Do you dream of living in that cute little mountain town you visited on a trip to Tuscany, or perhaps spending your retirement on the beaches of the Caribbean or Bali? While some Americans may think about retiring to a place like Florida — one of&nbsp;<a href="https://tickertape.tdameritrade.com/retirement/2018/03/retirement-location-top-places-29660" target="_blank" rel="noreferrer noopener">the top places to retire in the U.S.</a> — some of the best places to retire aren’t in the U.S. at all. In fact, some of the most affordable places to retire are abroad.

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