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☆ Americans Losing Faith They Will Have Enough Money for Retirement
▼ + stars: | 2023-04-29 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Workers and retirees have less faith they will have enough money to live comfortably through retirement as a result, in part, of high inflation and last year’s stock-market decline. In a long-running survey whose results were released Thursday, 64% of those still working reported feeling confident about their financial prospects during retirement. Last year, 73% of respondents were optimistic. Around 18% of surveyed American workers feel very confident, down from nearly 30% a year ago.

☆ Fidelity and State Street Push to Make 401(k)s More Like Pensions
▼ + stars: | 2023-04-19 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Millions more Americans will have access to pension-like investments in their 401(k) plans following a new push from two of the biggest money managers. State Street Global Advisors, the world’s fourth-largest asset manager, is launching a 401(k) investment product that lets savers convert their retirement nest eggs into a steady income for life via an annuity in their target-date fund.

☆ Millions Gain Access to 401(k)s as More Small Businesses Launch Plans
▼ + stars: | 2023-04-13 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

In California there was a 16% increase in new 401(k)-type plans in 2019 through 2021, compared with 2013 to 2018. A relatively strong job market, new tax breaks and state mandates are leading more small businesses to offer employees a 401(k) plan. The state mandate boost can be seen in California, Oregon and Illinois. Those three states were among the first to require private-sector employers that don’t offer retirement plans to give employees access to state-sponsored programs.

By 2030, more than one in five Americans will be over age 65By 2030, more than one in five Americans will be over age 65By 2030, more than one in five Americans will be over age 65By 2030, more than one in five Americans will be over age 65By 2030, more than one in five Americans will be over age 65Americans spend decades saving for retirement, never quite sure how much is enough or what sort of life that money will ultimately buy. Some aim to build nest eggs of $1 million, $2 million or more, though the majority of people have far less than that to work with. The recent bout of high inflation and market turmoil have added more anxiety to the challenge of making that money last.

☆ Here’s What Retirement With Less Than $1 Million Looks Like in America
▼ + stars: | 2023-03-24 | by ( Veronica Dagher | Anne Tergesen | ) www.wsj.com time to read: 1 min

Many Americans dream of saving $1 million for retirement. Most fall far short of that. The typical family’s 401(k) and IRA-type accounts come to less than half that goal in the years approaching retirement age, according to the nonprofit Employee Benefit Research Institute. Total household balances in retirement accounts for those 55 to 64 years old are $413,814 on average, according to its estimates based on 2019 data, the most recent available.

☆ Fear Over Social Security’s Future Leads Some to Claim Benefits Early
▼ + stars: | 2023-03-10 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Some Americans are claiming Social Security years before full retirement age out of fear their benefits will be cut once the program runs short on cash. They say they want to get as much in benefits as they can before 2034. That is when the retirement program is projected to deplete its reserves, triggering a 23% reduction in benefits, unless Congress acts. Economists and financial advisers generally discourage claiming early. Most expect Congress will prevent a precipitous drop in benefits.

☆ Fear Over Social Security’s Future Leads Some to Claim Retirement Benefits Early
▼ + stars: | 2023-03-10 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

☆ For $60,000, These Colleges Help Older Workers Plot Encore Careers
▼ + stars: | 2023-02-17 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Colleges are creating new programs for older adults who are contemplating what to do next as they near the end of their careers. The programs are designed for midlife professionals who typically have at least two decades of experience. About eight exist so far, many at elite institutions such as Harvard University and Stanford University, with more schools developing their own offerings. One-year programs often range from $50,000 to $60,000 or more, depending on the institution, with discounts available to some.

☆ The Market Tanked, but Americans Kept Piling Money Into Their 401(k)s
▼ + stars: | 2023-02-03 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Despite a steep fall in the S&P 500, retirement savers largely didn’t give into the temptation to sell assets. Americans largely stifled the urge to reduce their savings rates and sell stocks in their retirement accounts last year, even as the market declined and inflation soared. About 90% of investors in the 401(k)-style retirement plans administered by Vanguard Group maintained or increased their savings rate in 2022. And trading activity fell to a two-decade low among participants who manage their own investments, according to data from the Malvern, Pa.-based company.

☆ Short on Cash, More Americans Tap 401(k) Savings for Emergencies
▼ + stars: | 2023-02-02 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Squeezed by higher prices and short on cash, more Americans are tapping their 401(k)s for financial emergencies. A record 2.8% of the five million people in 401(k) plans run by Vanguard Group tapped their retirement savings in 2022 to cope with hardships such as medical bills, eviction or foreclosure, the company said. That is up from 2.1% in 2021 and a prepandemic average of about 2%.

☆ BlackRock, World’s Largest Asset Manager, Buys Stake in Small-Business 401(k) Startup
▼ + stars: | 2023-01-13 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

New York City-based BlackRock has about $8 trillion in assets spread across all types of investment products. BlackRock Inc. is taking a minority stake in a 401(k) provider that caters to small businesses, a long-ignored segment of the retirement market that is starting to attract more interest. BlackRock, the world’s largest asset manager, on Friday said it is making the investment in Human Interest Inc., a San Francisco company that has offered 401(k) plans since 2015.

☆ Your 401(k) Isn’t Enough: To Invest for Retirement, Build Friendships and Hobbies
▼ + stars: | 2022-12-29 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

This copy is for your personal, non-commercial use only. Distribution and use of this material are governed by our Subscriber Agreement and by copyright law. For non-personal use or to order multiple copies, please contact Dow Jones Reprints at 1-800-843-0008 or visit www.djreprints.com. https://www.wsj.com/articles/your-401-k-isnt-enough-to-invest-for-retirement-build-friendships-and-hobbies-11672269861

☆ Here’s What a $1 Million Retirement Looks Like in America
▼ + stars: | 2022-12-27 | by ( Anne Tergesen | Veronica Dagher | ) www.wsj.com time to read: 1 min

Once a symbol of extravagant wealth, $1 million is now the retirement-savings goal for millions of Americans. For retirees able to accumulate $1 million in savings, the funds translate into inflation-adjusted income of $40,000 in the first year of a three-decade retirement using the 4% spending rule. With the addition of the average annual Social Security payment for retirees of about $20,000, a $1 million nest egg can replace about 85% of a $70,000 median household income.

The highest inflation in four decades. A bear market in stocks. The past year was a trying one for American households. It strained their budgets, reduced their spending power and clobbered their 401(k) balances. Despite a recent burst of positive news—moderating gas prices and a slowing pace of inflation—many believe the economy will be in worse shape in 2023 than it is now.

☆ Big Changes to 401(k) Retirement Plans Move Ahead in Congress
▼ + stars: | 2022-12-20 | by ( Anne Tergesen | Richard Rubin | ) www.wsj.com time to read: 1 min

Congress is on the verge of passing a bill that aims to help Americans save more for retirement and leave their retirement savings untouched and untaxed for longer. The bill nearing approval raises the age people are required to start withdrawing money from tax-deferred retirement accounts to 75 from 72. It increases retirement savings contribution limits for older workers and provides an increased incentive to people with low and moderate incomes to save in retirement accounts. It also paves the way for more employers to offer emergency savings accounts inside 401(k) plans.

☆ The 4% Rule for Retirement Spending Makes a Comeback
▼ + stars: | 2022-12-12 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Retirees walloped by high inflation and volatile stock and bond markets are getting some good news: The 4% spending rule—or something close to it—is back. The traditional advice for retirees who need to make their money last for 30 years is to spend no more than 4% of their savings in the first year of retirement, and in subsequent years raise those withdrawals to keep pace with inflation.

☆ Labor Department Clears Path for 401(k) Plans to Offer ESG Funds
▼ + stars: | 2022-11-22 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

The new Labor Department regulations reverse a Trump administration move that made it harder for 401(k) plans to include ESG investments. More retirement savers could soon have the option to invest in funds based on environmental, social and governance principles, under final regulations issued by the Labor Department on Tuesday. The new rule reverses a move by the Trump administration in 2020 that made it harder for 401(k) plans to put ESG investments on the menu. That regulation went into effect shortly before President Biden took office, but the administration moved to replace it.

☆ What Old Age Might Be Like for Today’s 30-Year-Olds
▼ + stars: | 2022-11-16 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Journal Reports: Retirement10 Innovations From Around the World to Help Deal With an Aging PopulationBy Anne TergesenA demographic shift could create strains on individuals and institutions. Here are some ideas that may make a difference.

☆ 401(k) Plans Now Let Workers Put Retirement Money Into Cryptocurrency
▼ + stars: | 2022-11-03 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

A small group of workers is finding something new in their 401(k) plan: the option to invest in cryptocurrency. Momentum has been building to allow workers to invest retirement savings in bitcoin, ether and other cryptocurrencies, despite crypto’s sharp dives and warnings from regulators.

☆ Is Now a Bad Time to Retire?
▼ + stars: | 2022-11-03 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Retiring during a market downturn and soaring inflation can feel like sailing into the wind instead of the sunset. The market’s performance in the first few years of retirement can have a big impact on how long a nest egg lasts, partly because losses take a bigger bite out of a portfolio when it is typically at its largest, advisers and economists say.

☆ Here’s What a $2 Million Retirement Looks Like in America
▼ + stars: | 2022-11-03 | by ( Veronica Dagher | Anne Tergesen | ) www.wsj.com time to read: 1 min

For many Americans, retirement advice is limited to encouragement to save more or warnings that they haven’t saved enough. But most people get little guidance or give little thought to what to do with all those savings once they reach this next chapter. Whether they are decades, years, or months from retirement, it can be hard to imagine the life that 401(k) ultimately buys. And it is incredibly difficult to erase the anxiety about whether you are spending too much each year.

☆ Should You Retire Early to Get a Larger Lump Sum on Your Pension?
▼ + stars: | 2022-10-31 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

The math on when and how to retire is shifting for millions of workers with pension plans. Blame the steep rise in interest rates. When workers retire with a pension, many are given a choice between receiving a monthly income for life or taking a lump-sum payment. Many pick the lump sum, and those payout amounts have generally increased in recent years. But now, as interest rates rise, lump-sum payouts are dropping by as much as 30%, financial advisers say, sparking a wave of early retirements.

☆ Social Security COLA to Raise Taxes for Some Americans
▼ + stars: | 2022-10-26 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Social Security benefits will rise 8.7% in 2023 to help retirees keep pace with inflation. While that is good news for most retirees, some will find the bigger checks come with a bigger tax bill. Americans owe taxes on a portion of their Social Security benefits if they earn more than $25,000 as individuals, or $32,000 as couples. (When computing taxes on Social Security, the Internal Revenue Service counts half of a taxpayer’s benefits as part of their income.)

☆ Social Security Benefits to Increase 8.7% in 2023
▼ + stars: | 2022-10-13 | by ( Anne Tergesen | ) www.wsj.com time to read: 1 min

Social Security checks will be 8.7% bigger in 2023, the largest cost-of-living adjustment to benefits in four decades, the Social Security Administration said Thursday. The extra funds will provide relief for many of the roughly 70 million Social Security recipients whose budgets have been stretched thin by high inflation and whose nest eggs were walloped by plunging stock and bond markets. The average monthly Social Security check for retired workers will rise to $1,814 in January, up from $1,669 this year.

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