ShAARP Session: Observations from AARP

Results tagged “retirement savings” from ShAARP Session

Nov '09 10

Correy Robertson | 8:52 AM | 0 Comments

In an AdWeek article posted yesterday, the author takes a look at Americans' financial unpreparedness for retirement, especially in these tough economic times. The story reports on a study from the Center for Retirement Research at Boston College called "The National Retirement Risk Index: After the Crash."


Other studies are showing that younger generations are taking notice - and therefore taking steps to make sure they are doing a better job of saving in pre-retirement years. A report from AARP is mentioned - one that shows that 49 percent of 45-64-year-olds are not confident that they "will have enough money to take care of your medical and living expenses in retirement." Do you fall into that category? What steps are you taking to make sure you do have enough money throughout retirement?


AARP's David Certner is also quoted in the AdWeek article. He talks about how Americans are working past retirement age - but are facing obstacles along the way, like age discrimination. He also points out that this recession could change people's saving behavior for good, especially if the economy continues to be "muddled" for a number of years.


Pedestrian Safety
Another study making waves today is one from Transportation for America, a national transportation coalition, that lists the safest and most dangerous cities for pedestrians. AARP's Elinor Ginzler is mentioned in several articles - because pedestrians age 65 and older are particularly vulnerable to accidents. Check out a few of the stories about the study: Washington Post; AFP; Christian Science Monitor; and Miami Herald.

Oct '09 24

ShaarpWriter | 7:28 PM | 3 Comments

From Tara Coates

There are four ways to achieve wealth, says AARP financial ambassador Jonathan Pond: marry it, inherit it, win the lottery...or live beneath your means.


"The real key to financial success is to save regularly and regularly increase the amount you save," Pond told an audience of several hundred Saturday at AARP's Vegas@50+ Member Event.


And don't stop investing, or become overly cautious, once you retire. Pond said that retirees often make the mistake of having too much money in cash or other investments that don't have a high rate of return. "You still need income and growth investments to meet the rising cost of living increases. Sure, you may be tapping into your retirement funds in four years, but that money will need you to last 20 or more years."


Pond also encouraged the audience not to forgo living the good life in order to pass along a "fat" inheritance to their children -- who, he said, "don't deserve an inheritance. They just don't. I tell that to everybody -- except my mother," Pond said as the audience laughed and clapped in agreement. Instead, he said, spend the money on yourself and enjoy your life. He closed the session by leading the crowd in a mock swearing-in session in which they all promised to "die destitute."

When it comes to housing, Pond encouraged the audience to downsize from a larger home, to a smaller, more manageable space. But what about having extra room so the kids and the grandkids can visit? "Take the money from selling the house and put them up at a hotel," he said. Plus, he said, there's what he calls "Pond's law of bedrooms": the more bedrooms you have, "the more likely your adult children will move back home."

Oct '09 22

Correy Robertson | 12:17 PM | 0 Comments

A short but noteworthy article is on WSJ.com today - and it is a nice bit of news for those of us, young and old, still socking away money each paycheck in our 401(k)s. It says that "about half" the companies that suspended their matching benefit are "quietly" planning to match a portion of their employees 401(k) contributions. Check out the story for all the details.


Another story worth checking out today is in Newsweek - it's called "Un-Retiring." The story says that with "bigger than expected bills and smaller than expected nest eggs," workers between 55 and 70 expect to keep working until they are 70, and those already over 66 say they expect to work until they are 76. Check out the story for some resources on the best way to re-enter the job market if you're an older worker. Of course, the story points out AARP's list of 50 Best Employers for Workers Over 50. Check that out too!


All this older worker talk reminds me of an interesting post on WalletPop.com from yesterday...It says that more than half of the babies born in industrialized countries after the year 2000 will live to be 100. Great news, right? But it took this story to make me really think about the financial consequences of a longer lifespan. Check it out for yourself to see how the game changes when you life to be 100. AARP's John Rother is featured!

Sep '09 30

Correy Robertson | 9:11 AM | 0 Comments


USA Today featured a big story today on a survey from AARP that showed that Americans aged 45-64 are worried about having enough money for retirement and continued difficulty in paying for basic items such as food. Check out the story for all the startling statistics - there's a lot of anxiety out there about money these days.


In what some are calling a serious setback for President Obama, the Senate Finance Committee voted against the public health care option in Sen. Max Baucus' health care reform bill.


A Roll Call article reports that the White House has been "secretly drafting its own health care legislation that it may unveil at some point during the debate if officials believe it would help secure passage of a bill." Maybe that bill is an answer to the squabbling Democrats who are looking to the President to be the final arbitrator of the public option.


In retirement news, we are edging closer to January 2010, when the law enacted in 2005 - which will let anyone with a qualified retirement plan, such as a traditional IRA or 401(k) left behind at a former employer, shift those funds into a Roth - goes into effect. However, the WSJ reports that many people are confused about how Roth IRAs work. Check out the statistics - only 7% of survey respondents said they will be converting to Roth come January... I bet that number would be a lot higher if more people understood how they worked! Do you understand Roth IRAs? How did you go about learning the ropes?

Feb '09 18

David Goldstein | 11:17 AM | 0 Comments

If you listen to all the doomsday predictions and naysayers, then you probably don't think you have any shot at retiring. Not so says one Kansas State University professor. According to Fred Brock, people can still retire even during a steep recession. The key is not only trying to maximize earnings, but more importantly cutting costs. It's often unpopular to resort to scrimping and saving every last dime, but this is your retirement people! If it is truly important to you then you may have to make sacrifices. You might even need to move into a smaller home. If you owe money on your current home, renting it out could provide an additional source of income. In short, no pain no gain.

Feb '09 9

David Goldstein | 9:46 AM | 0 Comments

When the saving gets tough, the tough get saving. That's pretty much the bottom line from the experts when it comes to protecting your retirement savings. While your portfolio is likely going through difficult times these days, there are still important measures that can be taken to protect what you've saved. Many of these strategies can be a bit painful and involve some sacrifice, but tough times call for tough measures. Cut back where you can, sock money away some place safe if you can, and you may have to put off retirement. However, with some fiscal restraint you can prevent losing your nest egg.

Jan '09 5

David Goldstein | 9:52 AM | 0 Comments

While many companies are cutting benefits for their employees, you might be surprised to see which company is offering a great savings plan for its workers: McDonalds. The megalithic franchise decided to offer an auto-401 (k) with a huge match as a way to retain talent within the organization. Just how good is this program? Well employees who contribute 5% of their salaries to retirement savings can find matches from their employer as high as 11%. That'll buy a lot of Big Macs.
big mac.jpg

Nov '08 17

David Goldstein | 10:15 AM | 0 Comments

In the wake of harsh criticism and a growing number of headlines like this, many people are having doubts about the usefulness of 401(k)'s as a retirement savings tool. However, despite shaken consumer confidence and an unstable stock market, 401(k)'s still have their supporters. Individual retirement accounts are really the only way to prepare for retirement over the long hall and they can be the difference between affording retirement or having to keep working. Times may be tough right now, but these accounts are all we've got at the moment so we need to stick with them.

Oct '08 7

David Goldstein | 9:22 AM | 0 Comments

So the stock market has hit its lowest levels in four years, credit is tight and home values are down. We are all starting to get accustomed to these facts, but the real-world implications for the economic slow down are just starting to reveal themselves. One of the big losers in the current economic climate is retirement savings. Even before the markets really tanked, an AARP survey showed that 20% of baby boomers had stopped contributing to their retirement savings, and a third were considering postponing retirement. It's doubtful that the swooning economy of recent weeks has done much to improve these numbers. So if your nest egg is starting to look like this:
eggs.jpg
You're not alone.

Oct '08 2

Alejandra Owens | 5:25 PM | 5 Comments

The Associated Press has a piece about how stock losses are taking a heavy toll on retirement savings:

So close and yet so far. It's a frustration being felt by Americans who thought the finish line to their working life was almost in sight.

The financial crisis that toppled major Wall Street banks and snarled credit markets around the world has also taken a toll on nest eggs, forcing people to rethink when -- and even if -- their savings will allow them to retire.

More than half of people surveyed in an Associated Press-GfK poll released Wednesday said they worry that they will have to work longer because the value of their retirement savings has declined. (Emphasis mine)

Of course this poll doesn't come as much of a surprise. The crazy thing to me is that older Americans had already begun to have second thoughts on retiring before this financial meltdown. If we were in a crisis before, what is a more adequate term for what we're in now?