By Julie Jason | [email protected] | PUBLISHED: November 5, 2018 at 7:30 am | UPDATED: November 5, 2018 at 7:31 am Are you proud of your retirement plan at work? Do you feel it is worthy of recognition? Kerry Ryan, the director of employee benefits for Boston Medical Center, a nonprofit hospital offering a 403(b) to 9,000 participants, sees her plan that way. Ryan explained: “We provide a hub of financial wellness services that offer assistance throughout our employees’ careers, for both simple and complex needs. We don’t believe that there is a ‘one size fits all’ approach to supporting employees for retirement readiness.” Education is tailored to where employees are in their careers and how close they are to retirement. When employees are approaching retirement, the company holds a five-week retirement readiness campaign. “We develop custom and relevant messaging for our various employee groups and are always looking for additional … [Read more...] about Jason: Award celebrates companies with good retirement plans
Employer sponsored retirement plan types
Russ Wiles Arizona Republic Published 1:00 p.m. UTC Aug 12, 2018 Individual retirement accounts have been attracting record amounts of assets, even though relatively few people actually contribute money to them. An oxymoron? Not really. The growth of IRAs results from their widespread use as tax-sheltered repositories for money that has been building up in 401(k)-style plans. When leaving a job, workers and retirees must decide what to do with their 401(k) assets. Moving them to an IRA often is the best choice. "Making these types of decisions sometimes comes at an unexpected time due to a layoff, career change, personal emergency or an unexpected retirement," said Alan Norris, a certified financial plawithnner at Norris Wealth Management in Phoenix. The decision is complicated by differing investment options, variances in expenses, tax traps and more. "Knowing your options ahead of time can save you … [Read more...] about Don’t know what to do with your 401(k) plan? Consider moving it to an IRA
By Dayana Yochim/NerdWallet The average household led by a retiree makes $48,000 annually before taxes and spends roughly $46,000 a year. That's according to the Bureau of Labor Statistics' (BLS) measure of the income and outflow of "older households," meaning ones headed by someone 65 or older. Meanwhile, the annual average pretax income for all U.S. households is about $74,000 and expenditures are $57,000. While the main source of money for those still toiling in the 9-to-5 world is, of course, wages from work, who signs the average retiree's $4,000-a-month paychecks? Here's the answer to the $48,000 question. Retirees' trillion-dollar allowance By far the biggest source of income for retired Americans is Social Security, which in 2018 will pay out about $1 trillion in benefits, according to data from the Social Security Administration. As of May, the average monthly Social Security benefit for retired workers was $1,412, or just shy of $17,000 a year. (Remember, this is per … [Read more...] about Could you get by on the average American’s retirement income?
If asset growth rates were a race, individual retirement accounts could soon be lapping 401(k) accounts. Assets added to IRAs are set to grow to nearly twice the amount of assets in 401(k) retirement plans over the next four years, according to a report released by Cerulli Associates, a retirement industry consulting and research firm. What's behind the faster growth of IRA assets? Rollovers from 401(k) plans. Workers and retirees are opting to transfer their assets out of a 401(k) or other employer-sponsored retirement plan and into an IRA because the former lack flexible withdrawal options such as ad-hoc withdrawals. Individuals request to take distributions from retirement accounts for variety of reasons. And those reaching 70 1/2 are required to take minimum distributions beginning at that age and annually thereafter. So, when separated or retired plan participants need to withdraw from a 401(k) plan that doesn't offer flexible options, they'll typically transfer their plan … [Read more...] about When an IRA beats a 401(k) for your retirement savings
The American ideal of a happy, secure retirement is under threat as the economy changes and the financial foundations that supported previous generations erode. The decline of traditional pensions has increasingly shifted the retirement burden to personal savings, but stagnant wages and rising health care costs mean that it’s harder for Americans to build up a nest egg that can cover their costs through a longer lifespan. Social Security is on track to become insolvent in another decade or so, raising the possibility that even the marquee national safety-net program will have to reduce benefits to millions. As a result, older workers are postponing retirement, and businesses are feeling the effects in the form of reduced productivity. Washington created the incentives that have shaped retirement for nearly a century. Now, who is responsible for safeguarding the financial well-being of older Americans? What should be done, and what’s even possible politically? The answer is … [Read more...] about How to solve the retirement crisis