Regrets? Older Workers Have a Few

Which would you rather have: a job that offers a 401(k) or one that doesn’t have a retirement plan but comes with a higher salary? If you’re like most pre-retirees ages 55 to 65, you’re more than five times more likely to choose the 401(k). That’s one of the findings of the third annual survey by American Century Investments, a Missouri-based money manager that polled more than 2,000 workers ages 25 to 65 about saving, retirement and regrets. When the …

How Much Have You Saved for Retirement?

How much have you saved for retirement? Five hundred dollars? Five thousand? Fifty thousand? If you have even $5 saved, you’re one step ahead of nearly half of working-age households — who have ZERO saved for retirement. This startling fact is just one of the reasons AARP is fighting for Work and Save, a commonsense solution to help individuals save toward a secure retirement  through an easy payroll deduction at work — an option not available to many employees. Work …

2016 Social Security COLA? Don’t Bet on It

En español |  Nearly 60 million Social Security recipients will probably not get a cost-of-living increase next year, according to projections in the 2015 Social Security and Medicare trustees reports. This would be the third time Social Security beneficiaries have gone without a cost-of-living adjustment (COLA) since 1975, when automatic raises were put into place. The COLA this year was 1.7 percent, making the average monthly check for retired workers $1,334 as of May. Increases in benefits are tied to …

Why AARP Backs a New Retirement Plan Advice Rule

Yesterday was the due date for comments on a rule proposed by the U.S. Department of Labor that would protect people with 401(k)s and IRAs from conflicts of interest in the financial services industry. AARP filed our official comments yesterday, one on the new rule and one on the new proposed best interest contract exemption. The rule, proposed in April, requires all retirement plan advisers to provide advice in their clients’ best interest. That is the simple goal underlying the …

Aging in Thailand: Takeaways From a Year Abroad

They clutched their binoculars and scribbled notes in their programs. They paced behind the teller windows and snagged seats just before post time. Some spent the day on their own, but most huddled in groups, talking stats, favorites and odds. For the past year, I’ve studied aging at a population institute in Thailand. As a curious outsider — a farang (Westerner), as they say here — I’ve had the opportunity to observe aging, too. This weekend’s venue? A horse racetrack in …

Making Retirement Saving Even More Valuable by Adding Automatic Emergency Savings

Automatic enrollment for retirement saving is both effective and popular among all income, gender and ethnic groups. It has increased participation, helped people to both start saving earlier and to make appropriate investment choices.This mechanism would be even more useful, especially for younger workers and those with low-to-moderate incomes if retirement savings plans also allowed employees to save for unexpected expenses. Recent research by the US Financial Diaries Project, which looks at the actual income flows of low-to-moderate income consumers …