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.forbes.com/sites/nextavenue/2018/11/05/6-tips-for-a-terrific-retirement/#400076b815e3" target="_blank" rel="noreferrer noopener">6 tips for a terrific retirement</a> | <a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a> The transition from work to retirement can be a challenge. As much as we complain about work, a full-time job provides us with a routine, a community and a sense of purpose. If you want to enjoy a fulfilling retirement, you need to find a way to replace those benefits. But what’s the best way to do that? How do you decide where to devote your time and energy? A small group of retired United Way executives attending the annual United Way Retirees Association gathering in Connecticut recently offered some great advice about retirement, transitions and lessons learned from their experience.



<a href="https://www.bna.com/insight-verge-next-n57982093339/" target="_blank" rel="noreferrer noopener" class="broken_link">Are we on the verge of the next big pension bill?</a> | <a href="https://www.bna.com" target="_blank" rel="noreferrer noopener" class="broken_link">Bloomberg</a> While the eyes of the nation were focused on the Senate confirmation hearings for Brett Kavanaugh, the House of Representatives quietly passed the Family Savings Act of 2018 on September 27. The act, which is one of three tax bills clearing the House as part of the Republicans’ push for “Tax Reform 2.0,” contains a series of proposals designed to enhance Americans’ retirement security and increase other savings. Some of the proposals contained in the act are new, but many have been taken from previously introduced legislation—most substantially, from the Retirement Enhancement and Savings Act.



<a href="http://time.com/money/5445007/105-year-old-retiree-savings-strategy/" target="_blank" rel="noreferrer noopener">This 105-year-old martini lover has been retired almost 40 years</a> | <a href="http://time.com/" target="_blank" rel="noreferrer noopener">Time</a> Patricia Lyons Harrington recalls applying for a credit card in the 1950s, when she was a single, middle-aged school teacher in Boston. The company turned her down, since gender discrimination was as common in credit transactions as in other aspects of society. More than a decade later, the tide began to turn, and the same company sent her a solicitation. “I said ‘no thank you,’” recalls Harrington, 105. Well past the century mark, Harrington retains the feisty spirit that helped her forge her own career and manage her own money at a time when most of her peers married and stayed home to raise children. Today, the former music teacher lives with her nephew and his wife in a separate apartment in their home in Essex, Mass., where former students still come to visit her.



<a href="https://www.fool.com/retirement/2018/11/05/3-reasons-its-not-always-a-good-idea-to-retire-ear.aspx" target="_blank" rel="noreferrer noopener">3 reasons it’s not always a good idea to retire early—even if you can</a> | <a href="https://www.fool.com/" target="_blank" rel="noreferrer noopener">Motley Fool</a> Who doesn’t dream of retiring early? Rather than working until you can’t work anymore, you can spend your days traveling the world, learning new hobbies, or simply relaxing at home. Early retirement may sound great in theory, but in practice, it may not be the best idea. For one, most people aren’t even on track to retire at a normal retirement age, let alone early. Forty-two percent of Americans have less than $10,000 saved for retirement, according to a <a href="https://www.gobankingrates.com/retirement/planning/why-americans-will-retire-broke/" target="_blank" rel="noreferrer noopener">survey</a> of millennials, Gen Xers, and Baby Boomers from <a href="https://www.gobankingrates.com/" target="_blank" rel="noreferrer noopener">GOBankingRates</a>, and of those people, 14 percent have nothing at all saved. That’s not great news, especially considering the average person spends nearly $46,000 per year during retirement, according to the Bureau of Labor Statistics.



<a href="https://www.plansponsor.com/guaranteed-income-preferred-lump-sums/?utm_source=newsletter&amp;utm_medium=email&amp;utm_campaign=Newsdash" target="_blank" rel="noreferrer noopener">Guaranteed income preferred over lump sums</a> | <a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PlanSponsor</a> What would you do? Fifty-three percent of Americans ages 50 to 79 say they would prefer <a href="https://www.plansponsor.com/sponsors-can-offer-guaranteed-lifetime-income/" target="_blank" rel="noreferrer noopener">guaranteed lifetime income</a> of $660 a month over a $120,000 lump sum payment, the <a href="https://www.limra.com/secureretirementinstitute/" target="_blank" rel="noreferrer noopener">LIMRA Secure Retirement Institute</a> (LIMRA SRI) learned in a <a href="https://www.limra.com/Posts/PR/Industry_Trends_Blog/LIMRA_Secure_Retirement_Institute__More_than_Half_of_Consumers_Would_Choose_Guaranteed_Lifetime_Income_over_a_Lump_Sum_Payment.aspx?blog=SRI" target="_blank" rel="noreferrer noopener">survey</a>. When asked why they would take the <a href="https://www.plansponsor.com/companies-form-alliance-lifetime-income/" target="_blank" rel="noreferrer noopener">guaranteed income</a>, 57 percent said they expect to live a long life and 46 percent said it was because it would give them peace of mind.



<a href="https://www.plansponsor.com/u-s-institutional-investors-changing-views-esg-investing/" target="_blank" rel="noreferrer noopener">US institutional investors changing views of ESG investing</a> | <a href="https://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PlanSponsor</a> Institutional investors in the U.S. continue to view the application of environmental, social and governance (ESG) principles in investing more cautiously than other countries, but the percentage that reject ESG outright shrank dramatically year over year, from 51 percent to 34 percent, according to RBC Global Asset Management’s <a href="http://www.rbcgam.com/corporate-governance-and-responsible-investment/esg.html" target="_blank" rel="noreferrer noopener">third annual Responsible Investing Survey</a>. Forty-three percent of institutional investors incorporate environmental, social and governance (ESG) factors into their investing, up from 22 percent in 2013, <a href="https://www.plansponsor.com/institutional-investors-increase-use-esg/" target="_blank" rel="noreferrer noopener">according to a report from Callan</a>.

Retirement Roundup: 6 tips for a terrific retirement

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://www.forbes.com/sites/ebauer/2018/07/13/retirement-savings-and-pension-funding-101-some-actuary-splaining/#763497846db4" target="_blank" rel="noreferrer noopener">Retirement savings and pension funding 101 (some actuary-splaining)</a> |&nbsp;<a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a> How do employers fund and account for pensions?&nbsp; How should workers save for retirement?&nbsp; Revisiting the basics of pension funding methods might provide a different way of thinking about these issues.



<a href="https://www.reuters.com/article/us-column-marksjarvis-healthcare/how-to-shockproof-your-retirement-healthcare-costs-idUSKBN1K119S" target="_blank" rel="noreferrer noopener">How to shockproof your retirement health care costs</a> |&nbsp;<a href="https://www.reuters.com" target="_blank" rel="noreferrer noopener">Reuters</a> In a national survey by Brightwork Partners, four in five baby boomers said they worry but they are too confused to plan for medical costs. Tools are on the way. While most retirement health care research focuses on broad lifetime numbers, like <a href="https://www.azcentral.com/story/money/business/consumers/2018/04/22/health-costs-retirement-5-things-you-should-know/521129002/" target="_blank" rel="noreferrer noopener">Fidelity’s recent estimate</a> that a couple will spend $280,000 on health care costs in retirement, a new study by Mercer Health and Benefits and Vanguard Research broke it down more specifically.



<a href="https://www.healthcaredive.com/news/ma-outperforms-traditional-medicare-for-people-with-chronic-conditions-stu/527532/" target="_blank" rel="noreferrer noopener">Study: MA outperforms Medicare for people with chronic conditions</a> |&nbsp;<a href="https://www.healthcaredive.com" target="_blank" rel="noreferrer noopener">Healthcare Dive</a> Medicare Advantage enrollees with chronic conditions had 23 percent fewer inpatient stays and 33 percent fewer emergency room visits than beneficiaries in traditional fee-for-service Medicare, according to a recent Avalere Health&nbsp;<a href="http://avalere.com/expertise/managed-care/insights/medicare-advantage-achieves-better-health-outcomes-and-lower-utilization-of" target="_blank" rel="noreferrer noopener">study</a>. There were similar results for dual-eligible beneficiaries, among which MA recipients had 33 percent fewer hospitalizations, 42 percent fewer ER visits, and 20 percent lower costs.



<a href="http://www.startribune.com/minnesota-s-pension-changes-not-a-cure-all-moody-s-warns/487616801/" target="_blank" rel="noreferrer noopener">Minnesota’s pension changes “far from a cure-all,” Moody’s warns</a> |&nbsp;<a href="http://www.startribune.com" target="_blank" rel="noreferrer noopener">Star-Tribune</a> Just one month after Gov. Mark Dayton signed a massive overhaul of Minnesota’s pension system into law, the prominent credit rating agency Moody’s warned that the changes are “far from a cure-all.” Moody’s was one of several rating agencies that recently published articles saying the state’s reform, which is expected to stabilize the benefits of 511,000 retirees and public employees, is a step in the right direction. But the agencies warned more work will be needed to handle high pension burdens.



<a href="https://content.copera.org/retirement-roundup-retirement-savings-and-pension-funding-101/" target="_blank" rel="noreferrer noopener">Commentary: Public pension funds must not divest from reality</a> |&nbsp;<a href="https://www.copera.org/federal-legislation-hurt-institutional-investors-main-street-retirees" target="_blank" rel="noreferrer noopener" class="broken_link">Pensions &amp; Investments</a> Pension funds must invest long-term to meet the anticipated needs of retirees. Every dollar counts, and long-term growth is essential, especially because markets do not always go up. Managing other people’s money is not a trivial pursuit — it demands prudence, patience and perception, not political gamesmanship.



<a href="https://www.nytimes.com/2018/07/13/business/in-a-tight-labor-market-retirees-fill-gaps-their-previous-employers-cant.html" target="_blank" rel="noreferrer noopener">In a tight labor market, retirees fill gaps their previous employers can’t</a> |&nbsp;<a href="https://www.nytimes.com/" target="_blank" rel="noreferrer noopener">New York Times</a> At a moment when the unemployment rate is low, hovering around 3.9 percent, some employers are turning to their pool of retirees to fill holes in their staff. As with many of the unretired, the benefits of going back to work are more than financial. Full retirement, after all, isn’t right for everyone. For some seniors, work gives meaning. Losing it can be devastating.

Retirement Roundup: Retirement savings and pension funding 101

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



<a href="https://www.nytimes.com/2018/07/06/business/women-men-longevity-retirement.html" target="_blank" rel="noreferrer noopener">Women outlive men. Why do they retire earlier?</a> |&nbsp;<a href="https://www.nytimes.com" target="_blank" rel="noreferrer noopener">New York Times</a> Based on current life expectancy tables, a typical girl born in the United States today will most likely live until she is almost 87 years old — nearly four years longer than a typical boy born in 2018. But if current trends remain in place, she will probably&nbsp;<a href="https://www.nytimes.com/2017/11/10/business/how-to-win-the-battle-of-the-sexes-over-pay-.html" target="_blank" rel="noreferrer noopener">earn less</a>&nbsp;than he will, thanks in part, to a career that may be delayed or interrupted by bouts of caregiving, including motherhood. That’s what the statistics show.



<a href="https://www.plansponsor.com/case-using-institutional-approach-dc-plan-investments/" target="_blank" rel="noreferrer noopener">The case for using an institutional approach for DC plan investments</a> |&nbsp;<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PlanSponsor</a> A report,&nbsp;<a href="https://www.copera.org/retirement-roundup-women-outlive-men-yet-retire-earlier" target="_blank" rel="noreferrer noopener" class="broken_link">“Defined Contribution Investments on Trial,”</a>&nbsp;from the Institutional Relationship Group at PGIM, the asset management arm of Prudential Financial, notes that recent lawsuits have challenged the investment menu selection approach of many defined contribution (DC) retirement plans. Some plans use what PGIM calls the Retail Approach with a primary focus on appealing to what is believed to be what participants want, using a wide array of choice and an emphasis on name recognition. Others use what PGIM calls the Simple Approach, focusing on minimizing fees and maximizing simplicity, using heavy or exclusive use of passively managed funds and basic asset classes.



<a href="https://www.nytimes.com/2018/06/24/us/politics/medicare-chronic-illness-benefits.html" target="_blank" rel="noreferrer noopener">Medicare allows more benefits for chronically ill, aiming to improve care</a> |&nbsp;<a href="https://www.nytimes.com/" target="_blank" rel="noreferrer noopener">New York Times</a> Congress and the Trump administration are revamping Medicare to provide extra benefits to people with multiple chronic illnesses, a significant departure from the program’s traditional focus that aims to create a new model of care for millions of older Americans. The changes — reflected in a new law and in official guidance from the Department of Health and Human Services — tackle a vexing and costly problem in American health care: how to deal with long-term illnesses that can build on one another, and the social factors outside the reach of traditional medicine that can contribute to them, like nutrition, transportation, and housing.



<a href="https://www.plansponsor.com/firms-offer-framework-planning-retirement-health-costs/" target="_blank" rel="noreferrer noopener">Firms offer framework for planning for retirement costs</a> |&nbsp;<a href="https://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PlanSponsor</a> Vanguard has issued a new framework, jointly developed with Mercer, that helps pre-retirees and retirees better understand the financial planning implications of annual health care costs and long-term care expenses. The research paper,&nbsp;<a href="https://content.copera.org/retirement-roundup-putting-pera-on-a-path-to-prosperity/" target="_blank" rel="noreferrer noopener">“Planning for healthcare costs in retirement,”</a>&nbsp;outlines key health care cost factors and personal considerations, as well as frames health care expenses as an annual cost rather than a lifetime lump sum.



<a href="https://www.forbes.com/sites/andrewbiggs/2018/07/02/the-medias-coverage-of-retirement-saving-really-is-terrible/#5f5f4bcda2e6" target="_blank" rel="noreferrer noopener">The media’s coverage of retirement saving really is terrible</a> |&nbsp;<a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a> Americans&nbsp;<a href="https://news.gallup.com/poll/233861/update-americans-concerns-retirement-persist.aspx?g_source=link_NEWSV9&amp;g_medium=NEWSFEED&amp;g_campaign=item_&amp;g_content=Update%3a%2520Americans%27%2520Concerns%2520About%2520Retirement%2520Persist" target="_blank" rel="noreferrer noopener">worry&nbsp;</a>about retirement, and understandably so. Not because there’s an&nbsp;actual retirement crisis in the making, but because Americans are everywhere told that there is. A recent lengthy Wall Street Journal&nbsp;<a href="https://www.wsj.com/articles/a-generation-of-americans-is-entering-old-age-the-least-prepared-in-decades-1529676033" target="_blank" rel="noreferrer noopener">treatment</a>&nbsp;of Americans’ retirement savings – titled “A Generation of Americans Is Entering Old Age the Least Prepared in Decades” – is one of the most depressing examples. The Journal’s coverage of Americans’ retirement prospects serves up flawed data tied to touching, but unrepresentative personal case studies, all the while ignoring clear indications that retirement savings and retirement incomes have never been higher.

Retirement Roundup: Women outlive men yet retire earlier

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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