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 rel="noreferrer noopener" aria-label="Effective retirement plan communications are understandable, accessible (opens in a new tab)" href="https://www.plansponsor.com/effective-retirement-plan-communications-understandable-accessible/" target="_blank">Effective retirement plan communications are understandable, accessible</a> | <a rel="noreferrer noopener" aria-label="PlanSponsor (opens in a new tab)" href="http://www.plansponsor.com" target="_blank">PlanSponsor</a> Employees need to understand their retirement plan options so they can make the best decisions for their future, but the general public often misunderstands words that are commonly used by financial providers, employers and others in the retirement planning industry, according to a <a rel="noreferrer noopener" label="new report (opens in a new tab)" href="https://www.copera.org/retirement-roundup-the-confusion-surrounding-retirement-planning" target="_blank" class="broken_link">new report</a> from the <a rel="noreferrer noopener" aria-label="Empower Institute (opens in a new tab)" href="http://www.empower-institute.org/" target="_blank">Empower Institute</a>.



<a rel="noreferrer noopener" aria-label="As retiree health care costs soar, public employers turn to private insurers (opens in a new tab)" href="http://www.governing.com/topics/finance/gov-retiree-health-care-costs-soar-government-solutions.html" target="_blank">As retiree health care costs soar, public employers turn to private insurers</a> | <a rel="noreferrer noopener" aria-label="Governing (opens in a new tab)" href="http://www.governing.com/" target="_blank">Governing</a> The cost of retiree health care is spiraling out of control. In just two years, according to a recent S&amp;P Global Ratings report, unfunded retiree health-care liabilities across the 50 states increased by $100 billion to now just under $700 billion. In response, some public entities are scrapping government-sponsored health plans and instead paying for retirees to purchase a plan on a private health insurance exchange. The change is expected to save some cities hundreds of millions of dollars and make their annual retiree health-care costs more predictable.



<a rel="noreferrer noopener" label="Six things you learn after retirement (opens in a new tab)" href="https://www.copera.org/retirement-roundup-the-confusion-surrounding-retirement-planning" target="_blank" class="broken_link">Six things you learn after retirement</a> | <a rel="noreferrer noopener" label="US News (opens in a new tab)" href="https://content.copera.org/retirement-roundup-the-confusion-surrounding-retirement-planning/" target="_blank">US News</a> Retirement is a graduation of its own kind and a transition from one phase of life to another. Lessons from people who have already been retired for a while are sometimes encouraging, sometimes challenging, but they’re all valuable in their own way. <a rel="noreferrer noopener" aria-label="The bucket approach to spending reduces the stress of retirement (opens in a new tab)" href="https://www.vcstar.com/story/money/business/2019/01/17/bucket-approach-spending-reduces-stress-retirement/2576200002/" target="_blank">The bucket approach to spending reduces the stress of retirement</a> | <a rel="noreferrer noopener" aria-label="Ventura County Star (opens in a new tab)" href="https://www.vcstar.com/" target="_blank">Ventura County Star</a> Anyone retiring in 2019 could understandably be feeling a little skittish. There’s retirement research showing market declines in the first few years can devastate a portfolio’s chances of providing enough income for life, and recent volatility after a nearly decade-long bull market is worrisome. Interest rates moving higher could be a good sign, in theory, for someone hoping to build ladders of CDs, for example. On the other hand, if it also ushers in an era of rising inflation, that’s troubling, too. And a prolonged government shutdown could have even more of an impact on the economy. But if delaying is no longer an option, either because of health, the job market or simply your own conviction, consider building in a few contingency plans. <a rel="noreferrer noopener" aria-label="Worried you’re never going to be able to retire? (opens in a new tab)" href="https://www.kiplinger.com/article/retirement/T037-C032-S014-worried-you-re-never-going-to-be-able-to-retire.html" target="_blank">Worried you’re never going to be able to retire?</a> | <a href="https://www.kiplinger.com/" target="_blank" rel="noreferrer noopener" aria-label="Kiplinger (opens in a new tab)">Kiplinger</a> Some people spend more time thinking about retirement than others, but most everyone has at least a few ideas about what their life will be like when they don’t have to work anymore. Unfortunately for many, hoping and dreaming is about as far as they get in the planning process. They don’t know whether they can really achieve their goals because they haven’t taken the steps necessary to prepare for them. If that sounds like you, and you’re anywhere close to the age you think you’d like to be when you retire, be forewarned: Your retirement reality could be far different from the lifestyle you’ve imagined. And if it is, it likely will be because you ignored one or more of five basic threats.



<a rel="noreferrer noopener" aria-label="Colorado named 3rd-best state for retirement (opens in a new tab)" href="https://www.thedenverchannel.com/news/local-news/colorado-named-3rd-best-state-for-retirement" target="_blank">Colorado named 3</a><a rel="noreferrer noopener" aria-label="Colorado named 3rd-best state for retirement (opens in a new tab)" href="https://www.thedenverchannel.com/news/local-news/colorado-named-3rd-best-state-for-retirement" target="_blank">rd</a><a rel="noreferrer noopener" aria-label="Colorado named 3rd-best state for retirement (opens in a new tab)" href="https://www.thedenverchannel.com/news/local-news/colorado-named-3rd-best-state-for-retirement" target="_blank">best state for retirement</a> | <a rel="noreferrer noopener" aria-label="The Denver Channel (opens in a new tab)" href="https://www.thedenverchannel.com" target="_blank">The Denver Channel</a> Colorado continues to be a great place for retirees, according to a <a rel="noreferrer noopener" aria-label="new ranking (opens in a new tab)" href="https://wallethub.com/edu/best-and-worst-states-to-retire/18592/#main-findings" target="_blank">new ranking</a> released by personal finance website WalletHub. The Centennial State came in third on WalletHub’s list of the best states in which to retire, falling one spot from <a rel="noreferrer noopener" href="https://www.thedenverchannel.com/news/local-news/colorado-named-2nd-best-state-for-retirees" target="_blank">last year’s list</a>. Florida was once again named the best state for retirees. WalletHub based its rankings on three main factors: Affordability, quality of life and health care, taking into consideration things like tax rates, cost of living, activities available for seniors, and cost and quality of health care, among others.

Retirement Roundup: The confusion surrounding retirement planning

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://files.constantcontact.com/701ae45c001/16bb371d-1d76-4b07-a4fd-3f2474997ee3.pdf?ver=1524054150000" target="_blank" rel="noreferrer noopener">Response to Pew report, The State Pension Funding Gap</a>&nbsp;|&nbsp;<a href="https://www.nasra.org/" target="_blank" rel="noreferrer noopener">National Association of State Retirement Administrators </a>The vast majority of public pension plans have assets to continue paying benefits for decades, according to a recent statement from the National Association of State Retirement Administrators (NASRA) in response to&nbsp;recently published research on public plans from <a href="http://www.pewtrusts.org/en" target="_blank" rel="noreferrer noopener">The Pew Charitable Trusts</a>. Nearly all states have made changes in recent years to benefit levels, financing structures, and actuarial methods and assumptions to preserve or restore their sustainability. Many of these reforms and adjustments result in near-term cost increases while advancing long-term sustainability, and have been recommended by Pew in the past.&nbsp;States and pension plans can be expected to continue to make changes as necessary to ensure their sustainability.



<a href="https://www.plansponsor.com/public-sector-pension-changes-create-residual-effects/" target="_blank" rel="noreferrer noopener">Public-sector pension changes create residual effects</a> |&nbsp;<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PlanSponsor </a>A new Issue Brief publication from the <a href="https://slge.org/" target="_blank" rel="noreferrer noopener">Center for State and Local Government Excellence</a> (SLGE) seeks to answer the broad and challenging question, “How Have Pension Cuts Affected Public Sector Competitiveness?” The analysis explores the impacts of public pension reform from 2005 to 2014, finding some statistically significant evidence that cuts to pension benefits have reduced the ability of public-sector employers to compete with private-sector employers for workers. As the organization points out, there is a growing need for states and localities to consider in detail how <a href="https://www.plansponsor.com/case-study-warns-effect-move-public-db-public-dc/" target="_blank" rel="noreferrer noopener">pension benefit reductions may impact public-worker recruitment and retention</a>, and whether more analytical work can/should be done to further examine the workforce impacts of pension cuts. Read the <a href="https://slge.org/wp-content/uploads/2018/04/PensionCutsAndCompetitiveness.pdf" target="_blank" rel="noreferrer noopener">Issue Brief</a>.



<a href="http://money.cnn.com/2018/04/17/retirement/multiemployer-pension-committee/index.html">1 million Americans are counting on Congress to save their pensions</a> |<a href="http://money.cnn.com">CNN Money</a> More than 1 million workers and retirees could lose their pension benefits within 20 years. Many of them were construction workers or truck drivers who belonged to a union and paid into pension funds set up to cover workers from multiple employers. But about 100 of these pension plans are expected to run out of money in the next two decades, according to a <a href="https://www.copera.org/pension-plans-continue-evolve" class="broken_link">report</a> from the <a href="http://crr.bc.edu/">Center for Retirement Research at Boston College</a>. Lawmakers on both sides of the aisle agree that something must be done. A bipartisan committee headed by Republican Senator Orrin Hatch and Democratic Senator Sherrod Brown was created earlier this year with a mandate to come up with a legislative fix by November. &#8220;A number of the country&#8217;s biggest multiemployer pension plans are approaching insolvency, which poses a threat of small businesses going bankrupt, retirees seeing their benefits cut, and taxpayers getting stuck footing the bill,&#8221; Hatch said in a statement. (The Senate Finance Committee is currently accepting <a href="https://content.copera.org/pension-plans-continue-evolve/">public comment</a>.)



<a href="https://finance.yahoo.com/news/retirement-surprises-retirees-wish-had-163851006.html" target="_blank" rel="noreferrer noopener">Retirement surprises: What retirees wish they had known</a>&nbsp;|&nbsp;<a href="https://finance.yahoo.com" target="_blank" rel="noreferrer noopener">Yahoo! Finance</a> Retirement isn’t exactly as expected for many, with surprises including a younger-than-expected retirement age and higher health care costs, according to the <a href="http://news.gallup.com/topic/investor_and_retirement_optimism_index.aspx" target="_blank" rel="noreferrer noopener">Wells Fargo/Gallup Investor and Retirement Optimism Index</a>. Nearly one quarter of retired investors say they stopped working earlier than they’d have liked, which, according to Joe Ready, head of Wells Fargo Institutional Retirement and Trust, is a reason to consider different retirement scenarios in their planning. “Life events happen, and people don’t always get to choose when they retire — which is why it’s important to have a well thought-out plan that maps out different retirement age scenarios and projected costs in retirement,” said Ready. The average retirement age of those surveyed was 62, significantly below the age of 70 to which many are being encouraged to continue working to maximize savings and their Social Security benefits. Twenty-seven percent of men, and 19 percent of women, felt that their retirement age was earlier than they would have hoped.



<a href="https://www.marketwatch.com/story/how-retirement-investors-can-protect-themselves-even-without-a-fiduciary-rule-2018-04-13" target="_blank" rel="noreferrer noopener">How retirement investors can protect themselves — even without a fiduciary rule</a> |<a href="https://www.marketwatch.com" target="_blank" rel="noreferrer noopener">MarketWatch</a>A court may have blocked implementation of the fiduciary rule, but retirees can still protect themselves. That’s referring to the Department of Labor’s rule that, until it was <a href="https://www.marketwatch.com/story/appeals-court-shoots-down-labor-departments-fiduciary-rule-2018-03-15" target="_blank" rel="noreferrer noopener">blocked in mid-March by a U.S. appeals court</a>, would have legally bound brokers and advisers who handle retirement accounts to act in the best interests of their clients when they receive any compensation. Though that court ruling isn’t necessarily the final word on the matter, some are now <a href="https://www.barrons.com/articles/the-dol-fiduciary-rule-looks-grievously-wounded-1521670604" target="_blank" rel="noreferrer noopener">predicting that the rule will never get implemented</a>. To be sure, some think this is a good outcome, while others are lamenting it. But the point of this column is not to take a position either pro or con on the fiduciary rule but instead to show how you can still arrange it so that you are just as protected as you would have been had the fiduciary rule gone into effect.



<a href="http://www.governing.com/columns/smart-mgmt/col-states-retirement-savings-private-sector-social-experiment.html" target="_blank" rel="noreferrer noopener">The States’ Retirement-Savings Social Experiment</a> |<a href="http://www.governing.com/" target="_blank" rel="noreferrer noopener">Governing</a>Several states are undertaking what amounts to a significant social experiment, one that leaders and policymakers in other states will want to watch closely. Concerned about private-sector employees&#8217; lack of retirement savings and the potential impact on poverty levels, and subsequently on state budgets, legislators in nine states &#8212; California, Connecticut, Illinois, Maryland, Massachusetts, New Jersey, Oregon, Vermont, and Washington-have enacted programs designed to remedy both problems. They have good reason. Unlike most government employees, more than 30 million of the nation&#8217;s private-sector workers &#8212; about a third of the workforce &#8212; lack access to a retirement savings plan through their jobs. While some of these employees may have other savings vehicles, such as individual retirement accounts (IRAs), research by The Pew Charitable Trusts has shown that only 28 percent of those without access to an employer-provided plan have any retirement savings at all.

Retirement Roundup: State and local pension plans continue to evolve

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



<a href="https://www.theatlantic.com/business/archive/2018/02/pensions-safety-net-california/553970/" target="_blank" rel="noreferrer noopener">This is what life without retirement savings looks like</a> |&nbsp;<a href="https://www.theatlantic.com" target="_blank" rel="noreferrer noopener">The Atlantic</a>Roberta Gordon never thought she’d still be alive at age 76. She definitely didn’t think she’d still be working. But every Saturday, she goes down to the local grocery store and hands out samples, earning $50 a day, because she needs the money. “I’m a working woman again,” she said in the common room of the senior apartment complex where she now lives, here in California’s Inland Empire. Gordon has worked dozens of odd jobs throughout her life—as a house cleaner, a home health aide, a telemarketer, a librarian, a fundraiser—but at many times in her life, she didn’t have a steady job that paid into Social Security. She didn’t receive a pension. And she definitely wasn’t making enough to put aside money for retirement.



<a href="https://www.marketwatch.com/story/a-new-idea-mandatory-retirement-accounts-to-help-workers-delay-claiming-social-security-2018-02-28" target="_blank" rel="noreferrer noopener">A new idea: Mandatory retirement accounts to help workers delay claiming Social Security</a> |<a href="https://www.marketwatch.com" target="_blank" rel="noreferrer noopener">MarketWatch</a>A new proposal would create retirement saving accounts that would enable people to postpone the age at which they claim Social Security, thereby increasing monthly benefits.



<a href="https://www.nytimes.com/2018/03/05/opinion/investor-class-pensions.html" target="_blank" rel="noreferrer noopener">The real reason the investor class hates pensions</a>|<a href="https://www.nytimes.com" target="_blank" rel="noreferrer noopener">The New York Times</a>No issue in America today better illustrates the divergent interests of working Americans and the 1 percent than pension reform. Substantial empirical evidence shows that the 401(k), recently renounced by its own investors, is grossly inadequate and will leave tens of millions of Americans with insufficient retirement assets. And yet states and cities are busy converting traditional pensions into these failing 401(k)s or equivalents, to the great benefit of money managers and the finance class. 401(k) holders let ourselves be charged high fees that we do not understand, we accept poor returns quarter after quarter, we never sue to enforce our rights, we never vote as shareholders and we never tell our investment managers how we think they ought to vote.



<a href="https://content.copera.org/retirement-roundup-what-retirement-looks-like-with-no-savings/" target="_blank" rel="noreferrer noopener">Kentucky pension bill illegal in at least 21 ways, Beshear tells lawmakers</a> |<a href="https://www.copera.org/retirement-roundup-social-security-retirement-age-going-up" target="_blank" rel="noreferrer noopener" class="broken_link">Lexington Herald-Leader</a> In February, Kentucky Attorney General Andy Beshear told state lawmakers that a proposal to overhaul Kentucky’s ailing public pension systems contains “multiple legal violations.” In a six-page legal opinion, Beshear outlined 21 ways he believes proposed legislation violates the “inviolable contract” the state has made with teachers and employees of state and local governments. “It is clear that if you pass [the bill] into law, you should expect numerous lawsuits, which the commonwealth will lose,” Beshear warned lawmakers.



<a href="http://www.governing.com/topics/workforce/gov-pension-reform-new-employees-retirement.html" target="_blank" rel="noreferrer noopener">Retirement experts to new government employees: Think for yourself</a> |<a href="http://www.governing.com" target="_blank" rel="noreferrer noopener">Governing</a>When politicians talk about pensions, it’s usually about the enormous weight they place on government budgets. According to the Volcker Alliance, state and local governments are on the hook for $1 trillion in unfunded pension liabilities. Lawmakers on both sides of the aisle push for pension “reform,” a word often used in a positive sense, to rescue dollars that could instead be used for other services. But what about future retirees? Is pension reform positive for them? In many cases, not so much.



<a href="https://www.copera.org/retirement-roundup-what-retirement-looks-like-with-no-savings" target="_blank" rel="noreferrer noopener" class="broken_link">31 weird things about retiring you probably didn&#8217;t know</a>&nbsp;|&nbsp;<a href="https://content.copera.org/retirement-roundup-what-retirement-looks-like-with-no-savings/" target="_blank" rel="noreferrer noopener">Nasdaq</a> It&#8217;s never too early to start thinking about how you want to spend your time — and your money — in retirement. No matter if you&#8217;re hoping to retire as early as possible or plan to work until you can&#8217;t, having a plan for how you want to spend your senior years helps make sure your dreams come true. Fortunately, there are some weird and interesting facts that could help you make the most out of retirement. Read and see how you can make retirement easy.

Retirement Roundup: What retirement looks like with no savings

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



<a href="https://www.wsj.com/articles/where-should-you-live-in-retirement-1510542841" target="_blank" rel="noreferrer noopener">Where Should You Live in Retirement?</a> |<a href="https://www.wsj.com" target="_blank" rel="noreferrer noopener">The Wall Street Journal</a>It’s one of the most basic questions people ask themselves when they start planning for retirement: Where am I going to live? It’s also one of the most crucial questions, and one that, surprisingly, many people don’t give a lot of thought to. Sure, they ask themselves some cursory questions—especially about the weather and affordability. But they rarely delve very deeply, even though making the right choice can offer a greater chance of having a more fulfilling life.



<a href="https://www.cnbc.com/2017/11/13/senate-tax-tweak-would-curb-pretax-401k-catch-up-contributions.html" target="_blank" rel="noreferrer noopener">Potential Senate tax tweak would curb pretax 401(k) catch-up contributions</a> |&nbsp;<a href="https://www.cnbc.com" target="_blank" rel="noreferrer noopener">CNBC</a>Workers over age 50 would no longer be able to make catch-up contributions on a pretax basis to their retirement plans under a new amendment to the GOP&#8217;s Senate version of the tax bill. This amendment would permit workers over age 50 to contribute up to an additional $9,000 each year to their retirement plans, but it would require that these contributions be made to Roth accounts. Those are accounts where taxes are paid up front. Currently, employees over age 50 can contribute up to $6,000 in additional savings each year to their 401(k) plan and do so on a pretax basis. That&#8217;s on top of the current annual $18,000 limit.



<a href="https://www.plansponsor.com/debt-retirement-affects-confidence/" target="_blank" rel="noreferrer noopener">Debt in Retirement Affects Confidence</a> |<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PLANSPONSOR</a> Americans think it is bad thing for those in retirement to be carrying debt, the LIMRA Secure Retirement Institute found in a survey. However, data from the New York Fed Consumer Credit Panel indicates that those between the ages of 65 and 80 increased their debt load by 40% between 2003 and 2015. The LIMRA Secure Retirement Institute found that 51% of retirees with debt are confident they will be able to live the lifestyle they want, but for retirees without debt, that soars to 70%. Sixty-six percent of Americans view a mortgage held during one’s working years as “good” debt, but only 40% think this is true for those in retirement. Two-thirds (66%) of Americans do not think it is a good idea for people to carry mortgage debt into retirement.



<a href="https://www.copera.org/retirement-roundup-where-you-retire-matters" target="_blank" rel="noreferrer noopener" class="broken_link">Kentucky Governor Seeks Redo of Teacher Pension Analysis</a> |<a href="https://www.copera.org/retirement-roundup-where-you-retire-matters" target="_blank" rel="noreferrer noopener" class="broken_link">U.S. News &amp; World Report</a> Gov. Matt Bevin&#8217;s efforts to overhaul Kentucky&#8217;s ailing pension systems took another twist Tuesday when his administration asked consultants to redo their analysis of his proposed changes to retirement benefits for public school teachers. The request comes days after consultants forecast Bevin&#8217;s pension bill would cost Kentucky taxpayers an extra $4.4 billion over 20 years to fund teacher pensions. That projection assumes more teachers would retire early and the state would earn less on investments. Bevin&#8217;s administration signaled Tuesday it doesn&#8217;t like the assumptions used by the consultants in their analysis of how the governor&#8217;s proposal would impact the Teachers&#8217; Retirement System. The redo request comes as the Republican governor considers convening a special legislative session in Frankfort to deal with one of the country&#8217;s worst-funded public pension systems.



<a href="http://www.governing.com/topics/politics/gov-election-2017-new-york-pensions-forfeiture.html" target="_blank" rel="noreferrer noopener">Pension? Not for Corrupt Lawmakers Anymore in New York</a> |<a href="http://www.governing.com" target="_blank" rel="noreferrer noopener">Governing</a>Starting next year, long-time lawmakers convicted of corruption in New York can no longer count on their pension. On Tuesday, voters overwhelmingly approved a ballot measure that gives judges the right to trim or revoke the pensions of any public servant convicted of a job-related crime. The measure was largely driven by outrage over the corruption scandal that forced the resignation of New York Assembly Speaker Sheldon Silver and Senate Majority Leader Dean Skelos in 2015. Both long-time lawmakers put in for their substantial pensions just days after their convictions. (Both of their convictions were later overturned on a technicality.)



<a href="https://www.marketwatch.com/story/should-we-allow-mandatory-retirement-2017-11-14" target="_blank" rel="noreferrer noopener">Should we allow mandatory retirement?</a>&nbsp;|&nbsp;<a href="https://www.marketwatch.com" target="_blank" rel="noreferrer noopener">MarketWatch</a> Will employees be as effective at their jobs at age 75 as they were at age 55? An employer generally cannot require an employee to retire in most professions, even at a respectable age such as 68; and mandating a retirement age as a condition of employment would be regarded as engaging in age discrimination. How will employers deal with what is sure to be an aging (and more expensive) workforce as life expectancies increase?

Tag Archives:

Retirement Roundup: The confusion surrounding retirement planning

Retirement Roundup: What retirees would say to their younger selves

Retirement Roundup: State and local pension plans continue to evolve

Retirement Roundup: What retirement looks like with no savings

Retirement Roundup: Where you retire matters

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