Take Charge of Your Future With ‘Work and Save’

We all dream of a comfortable retirement - time to relax, travel, learn a new language or take up a hobby. But in these tough economic times, that dream can sometimes feel a little out of reach, especially for those who work for small businesses - because most of them have no access to any type of retirement savings plan at work. In fact, 3 out of 5 households headed by someone 65 or older have no money in retirement savings accounts. …

Is the 4% Retirement Withdrawal Rate Dead?

Many of us are familiar with the “4 percent rule.” That’s the annual retirement savings withdrawal amount many retirees have relied on over the years in an effort to avoid running out of money. Meanwhile, more experts these days are now dismissing it, saying the 4 percent rule no longer works amid today’s economic realities.  J.P. Morgan appears to be the latest investment house to bash the 4 percent rule, or any fixed-rate withdrawal plan, and replace it with another approach. Today the …

Cashing Out Your 401(k) and Living Dangerously

We all know that 401(k) savings plans are designed to help us sock away money for our old age. Increasingly, workers are tapping those funds for loans or cashing out altogether. Two reports released this month suggest that our retirement security could be undermined by our pattern of using those savings to ease our financial stress today. An estimated $6 billion annually seeps out of U.S. 401(k) plans because loans taken against them were not repaid fully, according to a …

Minorities Have Less in Retirement Savings, Survey Finds

After a lifetime of working, millions of Americans, and minority workers in particular, face the prospect of a difficult retirement because they have no access to a 401(k) savings plan. Worse yet, among workers ages 25 to 64, a majority of black and Latino workers (62 percent and 69 percent, respectively) and more than one-third of whites (37 percent) have no retirement savings, according to a study by the nonprofit National Institute on Retirement Security. The report was based on …

There is Nothing ‘Fuzzy’ About Social Security Benefits’ Positive Impact on the Economy

The idea that Social Security benefit payments help support local and state economies and the national economy is obvious to all 57 million beneficiaries who spend their dollars at stores and to the merchants who sell them goods and services. But it is not obvious to many in Washington. In a town focused only on what Social Security payments mean for the federal budget, a new report by AARP’s Public Policy Institute highlights, in actual dollars and jobs, what Social …

States Step Up for Retirement Security

Are you saving (enough) for retirement? The numbers paint a worrisome picture – for Americans, our families and the nation. Three-quarters of Americans age 55-64 had less than $30,000 in their retirement accounts as of 2010. And, more than 70 million American workers do not have any type of employer-sponsored retirement plan. Clearly, we need some help to get on the road to retirement savings – and more effective ways to save money for our future. This is where the …