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" label="Empower Institute (opens in a new tab)" href="http://www.empower-institute.org/" target="_blank" class="broken_link">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="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?
&nbsp;

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



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



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



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



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



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



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

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

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



<a href="https://www.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.denverpost.com/2018/06/15/putting-pera-on-a-path-to-prosperity/" target="_blank" rel="noreferrer noopener">Becker: Putting PERA on a path to prosperity</a> |&nbsp;<a href="https://www.denverpost.com/" target="_blank" rel="noreferrer noopener">Denver Post</a> Democrats and Republicans in the Colorado General Assembly are elected to solve problems and to make our state a better place to live, thrive and yes — retire. Our state is no stranger to drought and the Public Employees’ Retirement Association pension system was drying up the future of our retirees and public servants. This session legislators were faced with the colossal challenge of fixing this broken retirement system on behalf of our constituents.



<a href="https://www.washingtonpost.com/business/economy/dying-at-your-desk-is-not-a-retirement-plan/2018/06/15/63944026-6dc2-11e8-bd50-b80389a4e569_story.html?utm_term=.fc8ac625c357" target="_blank" rel="noreferrer noopener" class="broken_link">‘Dying at your desk is not a retirement plan’</a> |&nbsp;<a href="https://www.washingtonpost.com/" target="_blank" rel="noreferrer noopener" class="broken_link">Washington Post</a>



Some people get a pit in the stomach when they think about saying goodbye to that paycheck. Or at the prospect of deconstructing a nest egg they spent decades building. They might worry about feeling irrelevant or bored without the stimulation of work. For most people, retirement won’t be carefree. They will replace whatever worries they have now with a new set of concerns: health (and their mortality), money, humankind’s future. Of course, timing is everything: Retire too early, and you risk outliving your money. Stay at the desk too long, and you might miss out on life.



<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 health 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://content.copera.org/retirement-roundup-putting-pera-on-a-path-to-prosperity/" target="_blank" rel="noreferrer noopener">Networking should not end when you retire</a> |&nbsp;<a href="https://www.copera.org/news-you-should-know-beyond-inflation" target="_blank" rel="noreferrer noopener" class="broken_link">US News &amp; World Report</a>



You might think of networking as a necessary&nbsp;<a href="https://www.copera.org/retirement-roundup-putting-pera-on-a-path-to-prosperity" target="_blank" rel="noreferrer noopener" class="broken_link">career-boosting tool</a>, but it&#8217;s just as important in retirement. Many retirees quickly realize how closely their identities were attached to their jobs. They are unprepared for a post-career life that may not include their colleagues and &#8220;work family.&#8221;



<a href="https://www.courier-journal.com/story/news/politics/2018/06/13/kentucky-state-worker-retirements-rise-amid-pension-worries-not-teachers/695691002/" target="_blank" rel="noreferrer noopener">Kentucky state workers retired in droves—not so much with teachers&nbsp;</a>|&nbsp;<a href="https://www.courier-journal.com/" target="_blank" rel="noreferrer noopener">Courier-Journal</a>



During a period of uncertainty about potential changes to pension benefits, retirements in Kentucky surged among state and local government employees over the past 12 months. But in comparison, the number of Kentucky teachers retiring did not increase. Kentucky Retirement Systems reports that 8,445 state and local government employees will retire in the fiscal year that will end June 30 — an increase of 17.5 percent in the number of retirements over the previous fiscal year.



<a href="https://www.copera.org/retirement-roundup-putting-pera-on-a-path-to-prosperity" target="_blank" rel="noreferrer noopener" class="broken_link">State’s $12.5B pension shortfall contributes to reduced bond rating</a> |&nbsp;<a href="http://www.santafenewmexican.com/" target="_blank" rel="noreferrer noopener">Santa Fe New Mexican</a> A lagging economy and New Mexico’s “extremely large pension liabilities” helped lead a national credit rating agency to downgrade the state’s bond rating by a notch. Bond ratings, which reflect confidence in a state’s ability to pay its debts, can affect borrowing costs for road building and other projects. In dropping New Mexico’s general obligation bond rating to Aa2, its third-highest rating, Moody’s Investors Service cited New Mexico’s obligations to the Public Employees Retirement System and the Educational Employees Retirement System, which face total shortfalls of about $12.5 billion.

Retirement Roundup: Putting PERA on a path to prosperity

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">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="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.

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