retirement savings

Why the Chained CPI is Wrong for Social Security

Posted on 04/11/2013 by | AARP Blog Author | Comments

PoliticsYesterday, the President included Social Security cuts in his budget through a proposal called the “chained CPI”. Let’s take a minute and break down exactly what that means: The chained CPI would modify the way the cost-of-living-adjustment (COLA) for Social Security is calculated, cutting benefits by $127 billion dollars over the next 10 years alone. That comes out to over $2000 in lost benefits for the average senior. Some have tried to defend this unprecedented inclusion of Social Security benefit …

Changing Jobs? Beware of Bad Information About 401(k) Options

Posted on 04/8/2013 by | Money and Work | Comments

Bulletin Today | Money & SavingsAbout to change jobs? If you have a 401(k) account, you’re at risk of getting bad information when you ask the company managing your retirement plan about your options. Turns out that, in some cases, the people who give advice over the phone push departing workers toward rolling over their 401(k)s into a privately owned individual retirement account (IRA) that the investment company sells. What these plan providers also don’t disclose to workers are the fees associated with that move or other …

Help for 50-Somethings Short on Retirement Funds

Posted on 04/4/2013 by | AARP Blog Author | Comments

Money & SavingsThe following is a guest post from Barbara Friedberg. There is no shortage of people in their 50s with little retirement savings. Pension plans like the ones our parents’ generation relied on are few and far between. Those 401(k) balances aren’t as high as we hoped. Social Security still faces the possibility of the “chained CPI” COLA proposal. Most of us, like my friend Seth, haven’t saved enough. Seth lives in New York City and earned a mid six-figure salary …

Parents, Get Your Financial Life in Order. Then Talk to Your Kids.

Posted on 04/1/2013 by | Money and Work | Comments

Bulletin Today | Money & SavingsA new survey that questions whether parents talk to their school-age kids about money reveals some startling results — namely, that nearly one in five parents expect to lean on their children for financial help in their retirement years. The Parents, Kids & Money Survey by investment firm T. Rowe Price was designed in part to find out whether parents talk to their elementary- and high school-age kids about saving and spending, and just how in-depth they go in guiding their children …

Parents Build Wealth, Adult Kids Stagnate

Posted on 03/19/2013 by | Money and Work | Comments

Bulletin Today | Money & SavingsYou always want your kids to do better than you financially, but new research suggests their future may not be as fiscally bright. A widening gap is emerging between those over and under the age of 40 when it comes to saving money, owning a home, curbing debt and building a retirement nest egg. Those under age 40 have stagnated while their parents’ generation has accumulated wealth, according to research from the nonprofit Urban Institute. Average household net worth nearly doubled …

U.S. Ranks 19th In Retirement Living

Posted on 03/11/2013 by | Money and Work | Comments

Bulletin Today | Money & SavingsThinking about retiring soon? You may wish you lived in any one of 18 other countries since they offer better safety nets for retirees than the United States, according to a new retirement index. Norway, Switzerland, Luxembourg, Sweden and Austria rounded out the top five locations for living comfortably in retirement. Even the Czech Republic, Slovakia and Israel scored higher. According to the index, which measured financial well-being, health and other factors that contribute  to retirement security, the United States …