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Many Americans don't know, and it's getting even harder to calculate — especially as Social Security is poised to start reducing benefits in just about a decade. Related stories"That number is all over the place," Copeland said, referring to how much people are going to need in retirement savings. "It will be devastating if people who already are facing very dire retirement prospects get less Social Security than they're planning on. Estimating how much you will need in retirement may be helpful, even long before retirement. That highlights the fact that calculating how much you're going to actually need in retirement is complicated.

Persons: it's, That's, there's, Craig Copeland, Copeland, —, William Arnone, Indira Venkateswaran, Greenwald Organizations: Service, Security, Greenwald Research, Business, AARP, Wealth, Research Institute, Social, Social Security, National Academy of Social Insurance Locations: America

☆ Just 4% of current retirees say they are 'living the dream,' survey finds. Here's why
▼ + stars: | 2024-05-09 | by ( Lorie Konish | ) www.cnbc.com time to read: +4 min

Brauns | E+ | Getty ImagesJust 4% of today's retirees said they are "living the dream," according to a new survey from asset management company Schroders. Image Source | Getty ImagesThe Schroders survey results come as more experts are pointing to a potential retirement crisis. "The retirement savings crisis in the United States is no longer looming: it is here, now," said a new report from the National Institute on Retirement Security. Not everyone agrees there is an emergencySome experts are skeptical there is a retirement savings crisis at all. Of seniors with more than $10,000 in retirement savings, 93% said they were doing okay or living comfortably.

Persons: —, Deb Boyden, That's, Warren Buffett's, Boyden, Andrew Biggs, George W, Bush, EBRI, Biggs Organizations: Getty, National Institute on Retirement Security, Finance, American Enterprise Institute, Social Security, Northwestern Mutual, Research Locations: —, United States

☆ Americans making student loan payments have up to 36% less saved for retirement
▼ + stars: | 2024-02-19 | by ( Kamaron Mcnair | In Kamaronmcnair | ) www.cnbc.com time to read: +4 min

The study examined the retirement savings habits of more than 50,000 participants between 2017 and 2019 to see how student loan payments affected their contributions. While a higher salary does correlate with higher 401(k) balances and contribution rates overall, it doesn't close the gap between those making student loan payments and those who aren't making such payments. For employees earning less than $55,000 a year, those without student loan payments had balances about 4.5% higher on average than those with student loan payments, regardless of tenure. Lower earners were also less likely to reduce their contributions when they started making student loan payments. "[It's] less disposable income that [borrowers] have, so it's likely a fear reaction," Sam Silberstein, a certified financial planner and certified student loan professional with Student Loan Planner, tells CNBC Make It.

Persons: aren't, Sam Silberstein Organizations: Research Institute, CNBC

☆ Policy changes look to reduce 401(k) plan 'leakage'
▼ + stars: | 2024-02-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

About 40% of workers who leave a job cash out their 401(k) plans each year, according to the Employee Benefit Research Institute. The 401(k) ecosystem would have almost $2 trillion more over a 40-year period if workers didn't cash out their accounts, EBRI estimated. 85% of workers who cash out drain their 401(k)It's not all workers' faultIt's not all workers' fault, though. By law, employers can cash out the small account balances of former employees who leave their 401(k) accounts behind. It's not just workers who benefit: Administrators keep more money in the 401(k) ecosystem, likely padding their profits.

Persons: Craig Copeland, —, whittle, Spencer Williams, Vanguard Group —, wouldn't, Williams, who's, It's Organizations: Getty, Research, Fidelity Investments, Vanguard Group

☆ Why millennials' retirement outlook may be worse than older generations
▼ + stars: | 2024-02-09 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

'Deteriorating' retirement outlookAbout 38% of early millennials (those born in the 1980s) will have "inadequate" retirement income at age 70, according to projections from a 2022 Urban Institute study. watch now"We do see the retirement outlook deteriorating for future generations," including millennials, said Richard Johnson, director of Urban's retirement policy program and co-author of the report. Millennials' student loans dent their net worthA 2021 paper by the Center for Retirement Research at Boston College had similar findings. Meanwhile, the last major Social Security overhaul, in 1983, gradually raised the program's "full retirement age" to 67 years old. That will make it easier to save for retirement, according to a Brookings Institution report.

Persons: Jamie Grill, Craig Copeland, Gen X, Xers, Richard Johnson, Johnson, aren't, Millennials, Gen Xers, CRR, X, EBRI, Anqi Chen, Copeland, millennials, they're, William Gale, Hilary Gelfond, Jason Fichtner, there's, Sean Deviney, Deviney Organizations: Social Security, Research Institute, Urban, Center for Retirement Research, Boston College, Research, Transamerica Center, Retirement Studies, Finance, IRA, Pensions, Social, Center, Budget, Brookings Institution, Vanguard Group Locations: U.S, Fort Lauderdale , Florida

☆ Here are some last-minute options to spend down your flexible savings account ‘use-it-or-lose-it’ funds
▼ + stars: | 2023-12-01 | by ( Ana Teresa Solá | ) www.cnbc.com time to read: +4 min

It's common for workers to not know what their employer's FSA rules are. Stock up on over-the-counter medications The CARES Act of March 2020 removed prescription requirements to use FSA funds for many over-the-counter medicines. Buy certain skin care products You can use your FSA savings for eczema-approved creams and lotions. Plan ahead for a new baby New and expectant parents can use their FSA funds for baby products such as diaper rash cream, baby breathing monitors and baby sunscreen. How to use FSA funds wisely

Persons: Tom Werner, Digitalvision, Carolyn McClanahan, Jake Spiegel, you've Organizations: Getty, Planning Partners, CNBC's, Research, CNBC, Invest, Garmin, IRS Locations: Jacksonville , Florida

☆ Why working longer is a bad retirement plan
▼ + stars: | 2023-10-31 | by ( Greg Iacurci | ) www.cnbc.com time to read: +3 min

Daniel Gonzalez | Moment | Getty ImagesWorking longer is among the best ways to ensure you don't outlive your retirement savings. When it comes to retirement age, there's a big gap in expectations versus reality. But the actual retirement age was 62, on average. watch nowThose who target a retirement age past 61 end up making it about half as far as expected, he found. Social Security's full retirement age has gradually been pushed back, to as late as age 67 for anyone born in 1960 or after.

Persons: Daniel Gonzalez, Gallup, Blanchett, Richard Johnson, —, EBRI, Johnson Organizations: Gallup, Urban Institute . Pensions, Urban Institute

watch nowTraditional retirement plans aren't enoughFor years, employers' financial benefits mostly focused on offering robust workplace retirement plans. Yet, when asked where they would put an extra $600 provided by an employer, workers in the EBRI survey said they would spread it out — putting $192 toward funding retirement, $171 to emergency savings and $89 toward a health savings account, followed by paid time off, college savings and paying down college debt. Yet those numbers may increase as employers recognize the upsides for the worker and the workplace. New law gives employers more benefits flexibilityThe passage of Secure 2.0 legislation last year also gives employers more flexibility to offer emergency savings accounts. Starting next year, as much as 3% of an employee's paycheck can be automatically placed in an emergency savings account, up to a total of $2,500.

Persons: Jamie Grill, Buck, Chantel Sheaks Organizations: Center, U.S . Chamber of Commerce

However, the characteristics that members of this group generally displayed fall in line with common financial goals for many Americans who dream of retiring one day. They don't have consumer debtWealthy retirees in this study were the least likely to have credit card debt and auto loan debt, two common types of consumer debt. According to EBRI's research, only one in five wealthy retirees had auto loan and credit card debt. Compared to the average retiree, that's significantly less — in the average retiree category, about half had credit card debt, and about half had a car loan. The resulting number is a good estimate of how much you'll need to retire comfortably.

Persons: —, Robinhood, you'll Organizations: Security Research Center, Robinhood, Northwestern Mutual

Early retirement is popular with my clients right now, and I always offer the same advice. If you fall within the 11% crowd, there are a few things you need to consider before deciding on early retirement. With early retirement, many individuals start to experience a lack of social interaction since their peers are all likely still working. Be realistic about your monthly retirement income needsMany people approach early retirement the same as traditional retirement when it comes to their budget. To plan for these expenses, you should consider at least a 4-5% annual increase for out-of-pocket healthcare expenses during retirement.

Organizations: Service, Research, Medicare Locations: Wall, Silicon

☆ As retirement confidence drops, experts say focusing on these 4 factors can help
▼ + stars: | 2023-05-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Decide where you will live in retirement— Key deadline to watch: The sooner, the better. While you may start your Social Security retirement benefits as early as age 62, eligibility for Medicare generally does not start until age 65. Choose when to claim Social Security benefits— Key deadline to watch: By age 60, you should go to the Social Security Administration website and review your statement, recommends Copeland. When to claim Social Security retirement benefits is one of the big questions retirees face. "The later you can file for Social Security, the better it is as far as the amount you're going to get," John said.

Persons: Craig Copeland, Copeland, Dann Tardif, Susan Reinhard, It's, Reinhard, Jane Sung, Sung, Rupp, John Organizations: AARP, Institute, Social, Medicare, Security, State Health Insurance, Social Security, Social Security Administration, Sporrer, Getty

☆ Column: Inflation and the markets take a bite out of retirement confidence
▼ + stars: | 2023-05-02 | by ( Mark Miller | ) www.reuters.com time to read: +6 min

But persistent inflation and last year’s sharp stock market decline have shaken the confidence of American workers and retirees about their retirement prospects in a way not seen since 2008. That is the key finding of the 2023 Retirement Confidence Survey - the longest-running survey of its kind measuring worker and retiree confidence. But inflation affects everyone, and it is a constant risk factor in retirement plans - even when it is not making headlines. For starters, most retirees depend on Social Security for a substantial portion of retirement income - and it comes with built-in inflation protection. This year, the COLA was a whopping 8.7%, the largest inflation adjustment in four decades.

☆ Heading into retirement? Here are 4 key tips for mapping out a game plan
▼ + stars: | 2023-04-28 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Claiming Social Security benefits• Key deadline to watch: By age 60, you should go to the Social Security Administration website and review your statement, recommends Craig Copeland, director of wealth benefits research at EBRI. When to claim Social Security retirement benefits is one of the big questions retirees face. At full retirement age — 66 or 67, depending on your date of birth — you will receive 100% of the benefits you earned. "The later you can file for Social Security, the better it is as far as the amount you're going to get," John said. While you may start your Social Security retirement benefits at age 62, eligibility for Medicare generally does not start until age 65.

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). The Secure Act 2.0, signed into law last year, makes it easier to prepare for retirement when you have student loans. Secure Act 2.0 allows employers to match employees' student loan payments with retirement contributions. The average monthly student loan payment is $460, according to the Education Data Initiative. Personally, I have [ insert student loan total here ] in student loans, and my monthly payments are [ insert monthly student-loan payments here ] .

☆ This savings account offers a 'triple tax benefit'—but 88% of users are missing out
▼ + stars: | 2023-02-09 | by ( Ryan Ermey | ) www.cnbc.com time to read: +3 min

Traditional retirement accounts, such as 401(k)s and individual retirement accounts, come with an upfront tax break. But a third type of account comes with tax-deductible contributions, tax-free growth in your investments and tax-free withdrawals on certain expenses in retirement: health savings accounts. How health savings accounts workHealth savings accounts are only available to people enrolled in high-deductible health plans. But the HSA comes with some extra benefits. You're also allowed to invest your HSA money in stocks, bonds, exchange-traded funds and mutual funds.

☆ Why college coaches are a hot employee benefit
▼ + stars: | 2022-12-19 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

Then she came across an employee benefit her company offered: A "college coach." It is an intriguing employee benefit, in the era of the 'Great Resignation' and 'Quiet Quitting.' says Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. Getting help from college coaches is not to discount the critical work school counselors do every day. Since we are in the thick of application season, do not waste time in finding out if you have this employee benefit, especially if your teenager is looking ahead to college next fall.

☆ How to Spend Your FSA
▼ + stars: | 2022-11-30 | by ( ) www.wsj.com time to read: +4 min

Read on to find out more about how your FSA works and your best options to spend down your balance. Acupressure mat and pillowKanjo Acupressure Mat and Pillow Set $80 at AmazonYou might not have realized that an acupressure mat is FSA eligible. SunscreenEltaMD UV Clear SPF 46 Face Sunscreen $37 at AmazonThere’s a wide variety of sunscreen available on Amazon that’s FSA eligible. Why this December is differentThis year’s December FSA spending crunch could be worse than usual. Fortunately, while you must spend your FSA on medical costs, the options are a lot wider than just doctors visits and prescription meds.

☆ You may have ‘more money than ever’ left in a health FSA this year. What you need to know before pandemic relief expires
▼ + stars: | 2022-10-14 | by ( Sarah O'Brien | ) www.cnbc.com time to read: +3 min

Rules on how health FSAs workHealth FSAs let workers stash away pretax money for qualifying medical expenses. The standard deadline to use your health-care FSA money is Dec. 31 of the year in which you make the contributions. At the remaining 23% of companies, you forfeit funds remaining in your account after Dec. 31. However, that's below the 48% with a traditional Dec. 31 deadline who forfeit money, and 49% of those who are allowed to roll over money. If you're uncertain what the rules are for your FSA, reach out to your company's human resources department, Rouleau said.

☆ What today’s retirees want future retirees to know
▼ + stars: | 2022-06-22 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +4 min

US retirees have some advice for their younger selves, and by extension anyone who has yet to retire: Save more. And don’t forget to account for taxes and inflation – they’ll hit you harder than you expect. Those are key takeaways from a survey of more than 1,100 US retirees by the Employee Benefits Research Institute, which was conducted this spring. Roughly half (49%) of all survey respondents said they wish they’d started planning for retirement earlier. Nearly half of the survey respondents (48%) said they didn’t understand how taxes would affect their finances in retirement.

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