Living Expenses Confound Boomers Nearing Retirement

Retirement may be a stone’s throw away for older boomers but a survey finds that many are in the dark about how much it’ll take to fund their golden years. Two-thirds of about 1,100 respondents aged 55-60, and one-third of those 61-65, say they’re not certain how much money they’ll need to cover basic living expenses once they stop working. The findings of the Transition Boomers and Retirement Income Survey, conducted in June by Allianz Life Insurance Company of North America, seemed …

The Takeaway: Number of Americans Taking Social Security Early Hits 35-Year Low

In 2011, the number of Americans taking early Social Security benefits dropped to a 35-year low, according to a new report from the Urban Institute. For the second consecutive year, those taking benefits fell (to 27% of the number of eligible older adults). That’s down from 31% in 2009, reestablishing a 12-year downward trend interrupted only by the recent recession.

Make Your 401(k) Last In Retirement

If you’re worried about outliving your retirement savings, consider this: Don’t withdraw more than 6 percent annually from your employer-sponsored 401(k) or 403(b) plan.  Take more than that and you could be tempting fate. That’s the harsh conclusion from the Institutional Retirement Income Council, a nonprofit think tank that looked at several strategies for new retirees. Determining how much retirees should withdraw from their retirement plans has been a favorite subject of debate among retirement planners. The council’s 6 percent figure is at …

The Takeaway: IRS Cracking Down On Underreported Retirement Income

Determining whether retirement savings withdraws are taxable, partially taxable or tax-free can be difficult. A lot of retirees get it wrong””and the federal government is doubling down on efforts to correct them.