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="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.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">Are we on the verge of the next big pension bill?</a> | <a href="https://www.bna.com" target="_blank" rel="noreferrer noopener">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="https://www.plansponsor.com/fed-report-offers-picture-retirement-readiness-situation-america/" target="_blank" rel="noreferrer noopener">Fed report offers picture of retirement readiness situation in America</a> |&nbsp;<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PlanSponsor</a> Less than two-fifths of non-retired adults think their retirement savings is on track, whereas over two-fifths think it is not on track and about one-fifth are not sure, according to The Federal Reserve Board’s&nbsp;<a href="https://www.federalreserve.gov/publications/files/2017-report-economic-well-being-us-households-201805.pdf" target="_blank" rel="noreferrer noopener">latest Report&nbsp;on the Economic Well-Being of U.S. Households</a>. One-quarter of non-retired Americans indicate that they have no retirement savings or pension whatsoever.



<a href="https://www.benefitspro.com/2018/05/16/4-retirement-proposals-vetted-by-the-house-help-su/?kw=4%20retirement%20reform%20bills%20you%20need%20to%20know%20about&amp;et=editorial&amp;bu=BenefitsPRO&amp;cn=20180521&amp;src=EMC-Email&amp;pt=NewsAlert&amp;slreturn=20180421130526" target="_blank" rel="noreferrer noopener" class="broken_link">4 retirement reform bills you need to know about</a> |&nbsp;<a href="https://www.benefitspro.com/" target="_blank" rel="noreferrer noopener">BenefitsPRO</a>



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



<a href="https://www.usatoday.com/story/money/personalfinance/retirement/2018/05/20/retirement-how-much-do-americans-have-saved/615470002/" target="_blank" rel="noreferrer noopener">Retirement shortfall: 31 percent of Americans have less than $5,000 saved</a> |&nbsp;<a href="http://www.usatoday.com" target="_blank" rel="noreferrer noopener">USA Today</a> As a group, Americans have shockingly little saved for retirement. <a href="https://news.northwesternmutual.com/2018-05-08-1-In-3-Americans-Have-Less-Than-5-000-In-Retirement-Savings" target="_blank" rel="noreferrer noopener">Northwestern Mutual&#8217;s 2018 Planning &amp; Progress Study</a>, which surveyed 2,003 adults, found that 21 percent of Americans have nothing saved at all for their golden years, and a third of Americans have less than $5,000. To put that into perspective, it means that 31 percent of U.S. adults could last only a few months on their savings if they had to retire tomorrow.



<a href="https://www.tennessean.com/story/money/industries/health-care/2018/05/18/three-healthcare-costs-your-retirement-plan-should-address/621045002/" target="_blank" rel="noreferrer noopener">Three health care costs your retirement plan should address</a>&nbsp;|&nbsp;<a href="http://www.tennessean.com" target="_blank" rel="noreferrer noopener">USA Today Network</a> Planning for retirement? Don’t forget health care. According to&nbsp;<a href="https://workplace.fidelity.com/benefit-consulting-services.html" target="_blank" rel="noreferrer noopener">Fidelity Benefits Consulting</a>, a 65-year-old couple retiring in the last year will spend $275,000 on health care, not including long-term care expenses. This can be a real surprise for some consumers. There is a misconception that once a consumer reaches Medicare eligibility, there are no more out-of-pocket health care costs, but that is not the case. Medicare does not cover everything, so planning ahead for health care expenses is a crucial part of a comprehensive retirement strategy.



<a href="https://www.forbes.com/sites/forbesfinancecouncil/2018/05/22/closing-the-gap-for-the-retirement-haves-and-have-nots/#14e4de9e1872" target="_blank" rel="noreferrer noopener">Closing the gap for retirement haves and have-nots</a> |&nbsp;<a href="http://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a> The Employee Retirement Income Security Act (ERISA) was established in 1974 to give employees retirement income security. Why, then, after 40-plus years, are Americans so underprepared for retirement? According to a 2015&nbsp;<a href="https://www.gao.gov/assets/680/670153.pdf" target="_blank" rel="noreferrer noopener">study</a>&nbsp;from the Government Accountability Office, “About half of households age 55 and older have no retirement savings (such as in a 401(k) plan or an IRA).” Even those who have saved have saved poorly.



<a href="https://www.fool.com/retirement/2018/05/22/5-retirement-rules-to-live-by.aspx" target="_blank" rel="noreferrer noopener">5 retirement rules to live by</a> |&nbsp;<a href="http://www.fool.com/" target="_blank" rel="noreferrer noopener">Motley Fool</a>



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

Retirement Roundup: The picture of retirement readiness in America

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



<a href="https://www.nextavenue.org/retirement-confidence-theres-catch/">Retirement confidence is up, but there’s a catch</a> |<a href="https://www.nextavenue.org">Next Avenue</a>Buoyed by a sharp rise in stock prices that left many retirement savers feeling flush, the number of U.S. workers who say they’re confident about their ability to retire comfortably edged up last year, according to a sweeping new survey. Sixty four percent of workers surveyed said they’re very or somewhat confident about their financial prospects in retirement, up from 60 percent in 2016. Confidence was even higher among those closest to quitting time: 71 percent of workers aged 55 and older professed confidence they’ll have enough money to live comfortably in retirement. The big catch to this seemingly good news story: For many Americans, the faith in their ability to live well after they stop working full-time seems to be misplaced. That’s the big takeaway from the 28th annual <a href="https://content.copera.org/retirement-confidence-rise/">Retirement Confidence Survey</a>, the country’s longest running look at the retirement prospects for workers and retirees. Conducted by the nonprofit <a href="https://www.ebri.org/">Employee Benefit Research Institute</a> (EBRI) with the research firm <a href="http://greenwaldresearch.com/">Greenwald &amp; Associates</a>, the survey reflects the expectations and experiences of more than 2,000 Americans aged 25 and older, roughly split between workers and retirees, who were polled online in January.



<a href="http://money.cnn.com/interactive/economy/pension-crisis-retired-workers/index.html" target="_blank" rel="noreferrer noopener">The big myth about America&#8217;s pension crisis</a> |&nbsp;<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">CNN </a>America’s <a href="http://money.cnn.com/2018/04/12/retirement/state-pension-funds/index.html" target="_blank" rel="noreferrer noopener">pension crisis</a> is growing — and a lot of people are pointing fingers. Public pension funds don&#8217;t have nearly enough money to pay for the benefits promised to government workers. The shortfall across the United States grew by $295 billion between 2015 and 2016, according to a recent report from the Pew Charitable Trusts. And a handful of cities and states, including California, Illinois and Kentucky, must cover enormous costs if they are going to make good on the promises made to public employees as they retire.



<a href="https://www.forbes.com/feature/best-places-to-retire-2018/#4efd4842663e">2018 best places to retire</a>&nbsp;|&nbsp;<a href="https://www.forbes.com">Forbes</a> This year&#8217;s roundup spotlights 25 cities in 18 different states across the country. They were selected based on an assortment of retirement-friendly features — from walkability to affordability — as well as data from the <a href="http://www.milkeninstitute.org/">Milken Institute</a>, <a href="https://www.nar.realtor/">National Association of Realtors</a>, <a href="https://content.copera.org/retirement-confidence-rise/">Bureau of Labor Statistics</a> and more.



<a href="https://www.fool.com/investing/2018/04/23/what-happens-if-you-try-retirement-and-decide-its.aspx">What happens if you try retirement and decide it&#8217;s not for you?</a> |<a href="https://www.fool.com/">Motley Fool</a> In this segment from an episode of <a href="https://www.fool.com/podcasts/answers/">Motley Fool Answers</a>, Robert Brokamp and Alison Southwick consider a slightly heretical idea for a company with a mission to get people financially ready for retirement: Maybe you don&#8217;t really want to retire at all. Jumping off from a <a href="https://www.nytimes.com/2018/03/30/health/unretirement-work-seniors.html">New York Times</a> article that interviewed a number of people who had quit working, then gone back, they talk about the way society and we, as individuals, have changed since the traditional idea of retirement really took hold. They then weigh the value of just postponing retirement, and dig into the results of a recent <a href="http://www.nber.org/papers/w24226">study</a> that shows how remarkably even a short delay will improve your financial situation when you finally do settle down to your post-employment life.



<a href="https://www.cnbc.com/2018/04/25/why-your-social-security-check-could-be-less-than-you-expect.html">Your Social Security check could be less than you expect. Here&#8217;s how to prevent that</a> |<a href="https://www.cnbc.com">CNBC </a>You may be disappointed with the size of your Social Security check in retirement. To that point, 27 percent of retirees said their payments are less than they expected, according to the latest Social Security <a href="https://nationwidefinancial.com/media/pdf/NFM-16829AO.pdf?_ga=2.125531790.525921983.1525107554-928368521.1525107554">survey</a> conducted by Nationwide Retirement Institute. At the same time, aspiring retirees said they expect to receive $1,628 per month on average. But current retirees are receiving an average of $1,257 per month. That 30 percent difference can be a really big deal for retirees who do not anticipate that shortfall, according to Tina Ambrozy, president of sales and distribution at Nationwide. &#8220;There&#8217;s a huge disconnect between what those folks who are approaching retirement believe their retirement will cover and what it will cover,&#8221; Ambrozy said. &#8220;The gap is pretty significant.&#8221;



<a href="https://www.marketwatch.com/story/our-retirement-system-is-unfair-to-women-heres-why-2018-04-23">Our retirement system is unfair to women. Here’s why</a> |<a href="https://www.marketwatch.com">MarketWatch</a>A lot has been written about the “sandwich generation,” working adults under pressure to raise kids and care for aging parents — and probably forgoing their own financial needs to pull it off. To which women of just about any generation might say: Welcome to my world! Kara Stiles at Forbes wrote <a href="https://www.forbes.com/sites/karastiles/2017/12/07/the-unsettling-truth-about-women-and-retirement/#2e73deed1b63">an excellent piece</a> that details the problems women face in saving for retirement. These include the wage gap, losing earning years to caregiving for children, working part time (so no benefits), and just plain living longer than men. That’s why women are 80 percent more likely than men to be poor at retirement age, according to the <a href="https://www.nirsonline.org/reports/shortchanged-in-retirement-continuing-challenges-to-womens-financial-future/">National Institute on Retirement Security</a>.

Retirement Roundup: Retirement confidence on the rise?

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



<a href="https://www.plansponsor.com/cadillac-tax-delayed/" target="_blank" rel="noreferrer noopener">Cadillac Tax Delayed Again</a> |&nbsp;<a href="https://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PLANSPONSOR</a>The congressional bill that ended the government shutdown and provided funding until February 8 also included another two-year delay in the Affordable Care Act’s (ACA) excise tax on high-cost health plans, known as the Cadillac tax. The Consolidated Appropriations Act, passed in 2016, included a two-year delay of the 40 percent excise tax, making it effective in 2020. The new bill pushes the effective date to 2022.



<a href="https://www.bloomberg.com/view/articles/2018-01-25/the-argument-for-ditching-the-401-k-and-starting-over" target="_blank" rel="noreferrer noopener" class="broken_link">The Argument for Ditching the 401(k) and Starting Over</a> |<a href="https://www.bloomberg.com/view/" target="_blank" rel="noreferrer noopener" class="broken_link">Bloomberg View</a>There have been some modest attempts in the past few years to shore up and fill in gaps in this country&#8217;s haphazard system of retirement savings. These attempts &#8212; federal myRA accounts, state-run retirement accounts, and fiduciary standards for retirement account providers &#8212; have also all been shut down, rolled back or delayed since Donald Trump moved into the White House a year ago. So it may seem like a curious time to talk about tossing aside the current system of 401(k)s and individual retirement accounts in favor of an entirely new retirement savings system, as Teresa Ghilarducci and Tony James do in their book, &#8220;Rescuing Retirement: A Plan to Guarantee Retirement Security for All Americans,&#8221; which after an earlier iteration in 2016 is now out in hardcover.



<a href="https://content.copera.org/retirement-roundup-another-delay-for-cadillac-tax/" target="_blank" rel="noreferrer noopener">Still no action yet on Kentucky pension reform</a> |<a href="http://www.themoreheadnews.com" target="_blank" rel="noreferrer noopener">The Morehead News</a>The 2018 Kentucky General Assembly is now one-third of the way toward its constitutionally limited 60 days to pass legislation — and still there is no pension bill in sight. Ask nearly any member of the General Assembly — Democrat or Republican, House member or senator — what they’ve heard about a possible pension bill and when it might be filed, and odds are that person will say he or she hasn’t heard anything. The holdup on pension reform — originally Gov. Matt Bevin and Republican legislative leaders hoped to pass a bill in special session last fall — is also delaying work on the two-year budget, Senate Minority Caucus Chair Dorsey Ridley said.



<a href="https://www.forbes.com/sites/robertlaura/2018/01/29/why-part-time-work-doesnt-always-work-in-retirement/#194ef5464180" target="_blank" rel="noreferrer noopener">Why Part Time Work Doesn&#8217;t Always Work In Retirement</a> |<a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a> The idea of working a few hours or days a week in retirement has become an increasingly popular planning tool because of the possibilities of using it to supplement retirement income, stay connected to the work world, and yet have the flexibility to play golf, enjoy the grand kids, and other retirement based activities. However, many people base their plans for working part-time in retirement on limited knowledge and experience or a short-term series of events that are unlikely to happen again.



<a href="https://www.bloomberg.com/view/articles/2018-01-22/retirement-risks-keep-rising-and-this-is-why" target="_blank" rel="noreferrer noopener" class="broken_link">Retirement Risks Keep Rising, and This Is Why</a> |<a href="https://www.bloomberg.com/view/" target="_blank" rel="noreferrer noopener" class="broken_link">Bloomberg View</a>Half of working-age households in the U.S. were on track in 2016 to be able to maintain their standard of living in retirement, according to the <a href="http://crr.bc.edu/special-projects/national-retirement-risk-index/" target="_blank" rel="noreferrer noopener">National Retirement Risk Index</a> report out this month from the Center for Retirement Research at Boston College. Thanks mainly to rising home values, that&#8217;s better than in 2010 or 2013. But it still means that half of working-age households aren&#8217;t prepared for retirement, up from just 30.4 percent in 1989.



<a href="https://www.fool.com/retirement/2018/01/29/guess-how-many-gen-xers-and-baby-boomers-have-no-r.aspx" target="_blank" rel="noreferrer noopener">Guess How Many Gen Xers and Baby Boomers Have No Retirement Savings</a>&nbsp;|&nbsp;<a href="https://www.fool.com" target="_blank" rel="noreferrer noopener">The Motley Fool</a> We&#8217;re all told time and time again how crucial it is to save for the future. But unfortunately, a large chunk of workers in their late 30s, 40s, 50s, and 60s continue to put their retirement at risk. In fact, 41 percent of Gen Xers and 42 percent of Baby Boomers have yet to start building their nest eggs, according to data compiled by Comet. And that&#8217;s obviously a lot scarier for the latter group, since they&#8217;re the ones with the least amount of time to play catch-up.

Retirement Roundup: Another delay for ‘Cadillac tax’

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



<a href="https://www.fool.com/retirement/2017/06/22/5-signs-youre-not-ready-to-retire-even-if-you-thin.aspx" target="_blank" rel="noreferrer noopener">5 signs you’re not ready to retire (even if you think you are)</a>&nbsp;|&nbsp;<a href="http://www.fool.com" target="_blank" rel="noreferrer noopener">The Motley Fool </a>Retiring early can have major consequences, and most people underestimate how much they’ll actually need to live comfortably. According to the latest <a href="https://www.copera.org/retirement-roundup-ready-to-retire" target="_blank" rel="noreferrer noopener" class="broken_link">Retirement Confidence Survey</a> by the <a href="http://www.ebri.org" target="_blank" rel="noreferrer noopener">Employee Benefit Research Institute</a>, 63 percent of workers are at least somewhat confident that they have enough money to last through retirement, yet the average 401(k) account balance as of 2016 is just $96,000, or enough to provide $3,200 in annual income over a 30-year retirement. Before getting too excited about the prospect of early retirement, consider five different situations that could indicate it’s not worth the risk to retire now.



<a href="https://www.nytimes.com/2017/06/23/business/would-you-trust-tom-selleck-with-your-life-savings.html" target="_blank" rel="noreferrer noopener">Would you trust Tom Selleck with your life savings?</a>&nbsp;|&nbsp;<a href="http://www.nytimes.com" target="_blank" rel="noreferrer noopener">The New York Times </a>Choosing the perfect celebrity spokesman or spokeswoman for cars, coffee machines, soft drinks or cellphone service providers is a tricky business. But it can’t compete with the challenge of coming up with the right big name to pitch products at retirees. After all, when the discussion is life insurance, reverse mortgages or pharmaceuticals, the stakes are higher. Older Americans respond to boldface names who look like them, with gray or graying hair, and a few wrinkles, or more.



<a href="http://www.plansponsor.com/Pension-Cuts-Have-Public-Employees-Worried/" target="_blank" rel="noreferrer noopener">Pension cuts have public employees worried</a>&nbsp;| <a href="http://www.plansponsor.com" target="_blank" rel="noreferrer noopener">PlanSponsor </a>While it might be assumed that public employees, such as teachers, police and firefighters, are well covered by their pensions, they worry about life in retirement, according to a survey by <a href="https://content.copera.org/retirement-roundup-ready-to-retire/" target="_blank" rel="noreferrer noopener">Prudential Retirement</a>. Only 17 percent are very confident that they will have enough money to last them in the future.



Furthermore, according to the report, “<a href="https://www.copera.org/retirement-roundup-ready-to-retire" target="_blank" rel="noreferrer noopener" class="broken_link">Getting Back on Track: Financial Wellness in the Public Sector</a>,” more than one in four said that receiving a pension plan was a significant factor that influenced their decision to pursue a career in the public sector, and nearly half say that if their pension were at risk, they might reconsider remaining in their careers.



<a href="http://squaredawayblog.bc.edu/squared-away/pre-retirement-financial-review-is-a-must/" target="_blank" rel="noreferrer noopener">Pre-retirement financial review is a must</a>&nbsp;|&nbsp;<a href="http://squaredawayblog.bc.edu/" target="_blank" rel="noreferrer noopener">Squared Away Blog </a>One out of three boomers in a recent <a href="https://www.transamericacenter.org/retirement-research/17th-annual-retirement-survey/retirement-survey-of-workers-full-survey-results" target="_blank" rel="noreferrer noopener">Transamerica</a> survey said they are not confident they will have enough income to retire “comfortably” and another third concede that they are only “somewhat confident.” The most important thing for baby boomers who are not wealthy is knowing how much income will come in the door every singly month to pay the bills in retirement. This is a question that a financial adviser could help to answer.



<a href="https://www.fool.com/retirement/2017/06/19/does-the-average-american-have-a-401k.aspx" target="_blank" rel="noreferrer noopener">Does the average American have a 401(k)?</a>&nbsp;|&nbsp;<a href="http://www.fool.com" target="_blank" rel="noreferrer noopener">The Motley Fool </a>There’s a reason 401(k) plans are a popular choice for those looking to set aside money for the future. Not only are contributions traditionally tax-free, but because they’re deducted directly from earnings, the process of funding a 401(k) is as seamless as can be. So it may be surprising to learn that the average American does not, in fact, have a 401(k) – especially given the number of employees who have the option to participate in one.



<a href="http://www.nextavenue.org/retirement-planning-anxiety-zen/" target="_blank" rel="noreferrer noopener">Retirement planning: going from anxiety to Zen</a>&nbsp;|&nbsp;<a href="http://www.nextavenue.org" target="_blank" rel="noreferrer noopener">NextAvenue </a>Louise Nayer has been retired six years and is feeling pretty Zen about it. But as she writes in Poised for Retirement, Moving From Anxiety to Zen, that&#8217;s far different from the way she felt just before she quit work at 62, a few years after her husband did. Exhausted from work, she knew she was emotionally ready. But from a financial, professional and social standpoint, she had work to do. Part memoir and part self-help manual, she recounts her journey.

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