Retirement insights from a Colorado PERA perspective

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

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



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



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



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



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



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



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

Retirement Roundup: What retirees would say to their younger selves

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



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



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



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



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



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



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

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

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



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



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



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



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



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



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

Retirement Roundup: Why retirement isn’t the best time to change your financial approach

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



<a href="https://www.washingtonpost.com/business/economy/i-hope-i-can-quit-working-in-a-few-years-a-preview-of-the-us-without-pensions/2017/12/22/5cc9fdf6-cf09-11e7-81bc-c55a220c8cbe_story.html?utm_term=.efe0ead066c9" target="_blank" rel="noreferrer noopener" class="broken_link">A preview of the U.S. without pensions</a> |&nbsp;<a href="https://www.washingtonpost.com" target="_blank" rel="noreferrer noopener" class="broken_link">The Washington Post</a>The way major U.S. companies provide for retiring workers has been shifting for about three decades, with more dropping traditional pensions every year. The first full generation of workers to retire since this turn offers a sobering preview of a labor force more and more dependent on their own savings for retirement.



<a href="https://www.msn.com/en-us/money/retirement/a-secure-retirement-may-be-in-jeopardy-for-millions-of-americans/ar-BBHuFRW" target="_blank" rel="noreferrer noopener">A secure retirement may be in jeopardy for millions of Americans</a> |<a href="https://www.msn.com/en-us/money/" target="_blank" rel="noreferrer noopener">MSN Money</a>In <a href="https://www.copera.org/retirement-roundup-a-future-without-pensions" target="_blank" rel="noreferrer noopener">an opinion piece</a> from Dec. 10 on retirement issues, Andrew Biggs, a resident scholar at the American Enterprise Institute, criticized two reports from the U.S. Government Accountability Office (GAO) and argued that there is no impending retirement crisis. The GAO authors stand by their findings in the two reports &#8211; one issued in 2015 on the potential retirement security of near retirees and the other issued in 2017 on the status of the nation&#8217;s retirement system.



<a href="http://www.napa-net.org/news/managing-a-practice/industry-trends-and-research/projected-retirement-health-expenses-rise/" target="_blank" rel="noreferrer noopener">Projected Retirement Health Expenses Rise – Again</a> |<a href="http://www.napa-net.org/" target="_blank" rel="noreferrer noopener">National Association of Plan Advisors</a>A year ago, the nonpartisan Employee Benefit Research Institute (<a href="https://www.ebri.org/" target="_blank" rel="noreferrer noopener">EBRI</a>) estimated that individuals might need as much as $350,000 to cover health expenses in retirement. Readers might want to sit down for the update. The headline in a new report from EBRI says that when it comes to health expenses in retirement, “Some Couples Could Need as Much as $370,000, Up from $350,000 in 2016.” But the real answer depends on some key assumptions and variables, not the least of which is how sure retirees want to be of covering those expenses.



<a href="http://squaredawayblog.bc.edu/squared-away/new-yorker-cartoon-considers-401ks/" target="_blank" rel="noreferrer noopener">New Yorker Cartoon Considers 401(k)s</a> |<a href="http://squaredawayblog.bc.edu" target="_blank" rel="noreferrer noopener">Squared Away Blog</a> A New Yorker cartoon by Trevor Spaulding is cute, but – spoiler alert – it’s not quite right. A company offering a 401(k) retirement savings plan to its workers is a good thing, but it’s no “favor,” according to Steve Sass, an economist with a hawk eye for inaccurate retirement information. Setting up and funding a 401(k) is a big expense for employers. But many think it is worthwhile, because 401(k)s – and, more so, employers’ matching contributions – help them attract and retain the sharpest, most productive, or most-skilled workers.



<a href="https://www.marketwatch.com/story/four-ways-to-change-401k-plans-for-the-better-2017-10-25" target="_blank" rel="noreferrer noopener">Four ways to change 401(k) plans for the better</a> |<a href="https://www.marketwatch.com" target="_blank" rel="noreferrer noopener">MarketWatch</a>Over the past few months, 401(k) plans have been in the news a lot. At one point, Republicans floated the idea of drastically lowering the maximum that employees could contribute. And this week, President Trump asked once again how everyone’s 401(k) plans are doing as a result of the rising stock market. But what these plans need even more than a bull market is a way to get more people to participate in them, some experts suggest. Yes – 401(k) account balances and stock market performance are tied to one another, but not everyone has access to these defined contribution plans, and few who do invest in them.



<a href="https://www.courier-journal.com/story/news/politics/2018/01/05/kentucky-pension-bill-not-yet-filed-hints/1006695001/" target="_blank" rel="noreferrer noopener">A Kentucky pension bill has yet to be filed, but there are a few hints on its contents</a>&nbsp;|&nbsp;<a href="https://www.courier-journal.com" target="_blank" rel="noreferrer noopener">Louisville Courier-Journal</a> A month ago as it became apparent that Gov. Matt Bevin’s plan to pass pension reforms at a special session in 2017 would not be possible, legislative leaders aimed to pass a pension bill during the first two weeks of this year&#8217;s regular session. But with the first week of the session now over and no pension bill filed, it’s apparent that will not happen.

Retirement Roundup: a future without pensions

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



<a href="https://www.copera.org/retirement-roundup-a-new-plan-for-repealing-the-windfall-elimination-provision" target="_blank" rel="noreferrer noopener">Rep. Kevin Brady: It’s Time to Fix the WEP</a> |&nbsp;<a href="https://www.teachthevote.org" target="_blank" rel="noreferrer noopener">Teach the Vote</a>In a recent editorial, U.S. Rep. Kevin Brady wrote about the inherent unfairness of the Windfall Elimination Provision or “WEP.” “It’s unfair to public servants in Texas and across the nation, including places like California, Massachusetts and Ohio,” Brady said. “I’ve been working to repeal and replace the WEP for a decade. This is something we must do for our teachers, firefighters, police, and other public servants. You probably know the history: When Social Security was created in 1935, state and local governments were excluded from participating due to Constitutional concerns. Later, the law changed to allow state and local governments to offer Social Security to their employees. I think we can all agree that our teachers, police, and firefighters deserve better,” Brady added.



<a href="http://www.investmentnews.com/article/20171206/FREE/171209953/legislation-to-combat-elder-financial-abuse-advances-in-senate?itx%5bidio%5d=6201115&amp;ito=792&amp;itq=d9989b79-f570-466e-a76b-baed6695f49c" target="_blank" rel="noreferrer noopener" class="broken_link">Legislation to combat elder financial abuse advances in Senate</a> |<a href="http://www.investmentnews.com" target="_blank" rel="noreferrer noopener">InvestmentNews</a>Legislation that would give financial advisers civil liability protection when reporting suspected financial abuse of seniors advanced in the U.S. Senate on Tuesday. The Senior Safe Act was approved by the Senate Banking Committee as part of a larger bill that would reform regulation of credit unions, community banks, and small regional banks. The Senate action follows approval of a companion elder-abuse bill by the House Financial Services Committee in October.



<a href="https://www.washingtonpost.com/news/get-there/wp/2017/12/04/whats-the-largest-social-security-retirement-check-someone-can-get/?utm_term=.48b57bd982b8" target="_blank" rel="noreferrer noopener" class="broken_link">What’s the largest Social Security retirement check someone can get?</a> |<a href="https://www.washingtonpost.com/" target="_blank" rel="noreferrer noopener" class="broken_link">The Washington Post</a>Looking at your Social Security statement regularly should be a key part of your retirement planning. This means not just waiting until a few years before you retire to check what’s on your benefit. Retirement planning should begin the day you start working full-time. Knowing how much you can expect from Social Security (assuming there aren’t major changes by the time you do retire) should be part of determining how much you need to save and invest for retirement.



<a href="https://www.plansponsor.com/retirees-found-some-expenses-in-retirement-higher-than-expected/" target="_blank" rel="noreferrer noopener">Retirees found some expenses in retirement higher than expected</a> |<a href="https://www.plansponsor.com/" target="_blank" rel="noreferrer noopener">PLANSPONSOR</a> In a survey of Baby Boomers, Capital Group found that, among those who are retired, 60 percent say that life post-employment is better than they had anticipated. Thirty percent say it meets their expectations, and 10 percent say it is worse than they expected, with many in this group blaming finances or health. Others point to lifestyle issues, such as boredom, loneliness, or the fact they miss work. However, despite many saying retirement is surprisingly better, Boomers face a myriad of costs that are surprisingly higher, starting with those for health care; 43 percent of Boomers say health care costs are higher than anticipated. Other unexpectedly high expenses are: travel (40 percent), taxes (34 percent), food (25 percent) and utilities (23 percent). By comparison, only 11 percent of retired Boomers say they spend more than they had hoped to to support dependents, a mere 9 percent say credit card debt is a problem, and only 9 percent say housing costs exceed those anticipated.



<a href="https://www.forbes.com/sites/kateashford/2017/12/06/adult-children/#6351216b4264" target="_blank" rel="noreferrer noopener">Supporting adult children could cost you $227K in retirement</a> |<a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes</a>If you’re not careful, lending your adult children a financial hand can have significant consequences later on. It could cost you as much as a quarter of a million dollars out of your retirement nest egg, new research has found. Some 80 percent of parents of children 18 and older are covering, or have covered, at least a portion of their adult child’s expenses, according to a recent survey from NerdWallet. That includes helping pay for groceries (56 percent), health insurance (40 percent), rent or housing (21 percent), cell phone bills (39 percent) and car insurance (34 percent). However, if parents took the money they were spending on their children and put it toward retirement, they’d have about $227,000 more to tide them over, the report says.



<a href="https://hbr.org/2017/12/how-digital-tools-and-behavioral-economics-will-save-retirement" target="_blank" rel="noreferrer noopener">How digital tools and behavioral economics will save retirement</a>&nbsp;|&nbsp;<a href="https://hbr.org" target="_blank" rel="noreferrer noopener">Harvard Business Review</a> In Shlomo Benartzi’s work as a behavioral economist, he’s thought a lot about how nudges can drive lasting behavior change. In the domain of retirement savings, he and Nobel laureate Richard Thaler devised a program called Save More Tomorrow back in the mid-1990s that used nudges to help people make better decisions about their long-term financial future. That program invites employees to gradually increase their savings rate over time, and it has been a success: according to Mr. Benartzi’s latest estimates, it has boosted the savings rates of as many as 15 million Americans. Read more about Behavioral Economics in this week’s PERA on the Issues article, “Nobel Prize puts spotlight on behavioral economics, retirement plan policy.”

Retirement Roundup: a new plan for reforming the Windfall Elimination Provision?

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



<a href="https://www.washingtonpost.com/graphics/2017/national/seniors-financial-insecurity/?utm_term=.cca7f14421behttps://www.yahoo.com/news/apos-long-1-million-retirement-195553143.html" target="_blank" rel="noreferrer noopener" class="broken_link">“I’m going to work until I die:” The new reality of old age in America</a>&nbsp;|&nbsp;<a href="https://www.washingtonpost.com" target="_blank" rel="noreferrer noopener" class="broken_link">Washington Post </a>People are living longer, more expensive lives, often without much of a safety net. As a result, record numbers of Americans older than 65 are working — now nearly 1 in 5. That proportion has risen steadily over the past decade, and at a far faster rate than any other age group. Today, 9 million senior citizens work, compared with 4 million in 2000.



<a href="https://www.bloomberg.com/news/articles/2017-09-25/having-children-can-ruin-your-retirement" target="_blank" rel="noreferrer noopener">Having Children Can Ruin Your Retirement |</a>&nbsp;<a href="https://www.bloomberg.com/news/articles/2017-08-24/health-care-costs-could-eat-up-retirement-funds-forecast-shows" target="_blank" rel="noreferrer noopener">Bloomberg </a>Parenthood has plenty of non-monetary perks, but the financial effects can last the rest of your life. It may seem obvious that kids make it harder to save. In practice, however, parents can compensate for the extra costs of parenting by spending less on themselves. Parents are often forced to budget carefully—a skill that will pay off long after their children are grown. Some people may even decide to take their careers more seriously after having kids, and studies show that some fathers end up earning more than if they’d remained childless.



<a href="https://www.copera.org/retirement-roundup-older-workers-new-problems" target="_blank" rel="noreferrer noopener">Colorado spends the most on out-of-pocket health care but that could be a good sign |</a>&nbsp;<a href="http://www.denverpost.com" target="_blank" rel="noreferrer noopener">Denver Post</a> Colorado spends the most on out-of-pocket health care costs, according to a JPMorgan Chase Institute healthcare spending study. But that’s not necessarily a bad sign. The study, examining anonymous data from 2.3 million Chase customers across 23 states from 2013-16, found that families increased their health care spending when they came into more income or assets.



<a href="https://www.forbes.com/sites/nextavenue/2017/09/13/why-the-tax-reform-crew-may-target-your-retirement/#740796a4194e" target="_blank" rel="noreferrer noopener">Why The Tax Reform Crew May Target Your Retirement |</a>&nbsp;<a href="https://www.forbes.com" target="_blank" rel="noreferrer noopener">Forbes </a>It’s&nbsp;<a href="http://www.nirsonline.org/index.php?option=com_content&amp;task=view&amp;id=882&amp;Itemid=48" target="_blank" rel="noreferrer noopener">no secret</a>&nbsp;that the trend to 401(k) plans from traditional pensions has put more pressure on individuals to save enough for retirement. Combine that with recent moves by the federal government to roll back rules that might have made saving easier, and the retirement landscape has never been more treacherous. Fortunately, there are still some common-sense steps you can take to make your financial future more secure.



<a href="https://www.bloomberg.com/news/articles/2017-09-29/who-s-left-out-of-401-k-nation" target="_blank" rel="noreferrer noopener">Who’s Left Out of 401(k) Nation |</a>&nbsp;<a href="https://www.bloomberg.com/news/articles/2017-08-24/health-care-costs-could-eat-up-retirement-funds-forecast-shows" target="_blank" rel="noreferrer noopener">Bloomberg </a>Only 45 percent of U.S. workers participate in an employer-sponsored retirement plan, according to the Pew Charitable Trusts. Many don’t even have the option—one-third of U.S. workers aren’t offered a pension or 401(k)-style plan by their employers.



<a href="https://www.copera.org/retirement-roundup-older-workers-new-problems" target="_blank" rel="noreferrer noopener">Proposed 401(k)s cost more than Kentucky’s existing defined benefit pension plans</a>&nbsp;|&nbsp;<a href="http://www.nkytribune.com" target="_blank" rel="noreferrer noopener">Northern Kentucky Tribune</a> Kentucky needs ideas that work to reduce its unfunded pension liabilities. Moving employees into 401(k)-type defined contribution plans is actually more expensive, increases the cost of paying off existing liabilities, and harms retirees, while making it much more difficult to attract and retain a skilled workforce.

Tag Archives:

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