Creating Effective State-Sponsored Retirement Plans

By Gary Koenig, Vice President, Financial Security, and David John, Senior Policy Adviser, Financial Security State-sponsored retirement savings plans can help private-sector workers not covered by employer plans build financial security. How many workers? More than you might think. In 2013, about 55 million private-sector employees did not have access to a retirement plan at work, including more than 7 million in California, 2 million in Illinois, and about 1 million each in Indiana and Maryland. Research shows that middle …

IRS Boosts Limits for 401(k) Contributions

If you’ve been wanting to sock away more money in your workplace retirement savings plan, next year’s your chance. This morning the Internal Revenue Service announced that next year’s contribution limits will go up by $500, to $18,000 for 401(k)s, 403 (b) plans at nonprofits and most 457 plans offered by state and local governments, as well as the federal government’s Thrift Savings Plan. >> Boost Your 401(k) Retirement Savings Workers ages 50 and older are entitled to make extra contributions …

Social Security Benefits to Rise 1.7% Next Year

Social Security benefits will rise by 1.7 percent starting in January, the Social Security Administration announced Wednesday. That’s a tad higher than this year’s 1.5 percent increase. It’s also the fourth straight year that the cost-of-living adjustment was below 2 percent for nearly 59 million retirees, disabled workers and their families. The adjustment amounts to about $22 a month for those who receive the average monthly benefit of $1,302. >> See AARP CEO Jo Ann Jenkins’ statement on the COLA “The …

In Thailand, Retirement Is Not Always a Choice

Pa’ Noi manages the neighborhood restaurant that my boyfriend, Joe, and I love here in Thailand, where I’m doing part of my master’s program in gerontology. When we arrive, she greets and seats us, and patiently waits as we, the farangs (Thai for “foreigners”), fumble through our orders. When we finish, she brings us our check and our change, and she inevitably beats the busboys to a first swipe at our table. Pa’ Noi is 71, and she’s great at …

Virginia Senate Candidates Spar Over Social Security, Medicare

In their final scheduled debate before Election Day, Virginia’s two major-party candidates for the U.S. Senate sparred over their records on Social Security and Medicare while voicing similar views on steps needed to address their long-term financing. The debate, held in Richmond on Oct. 13 and televised statewide, was cosponsored by AARP Virginia, whose president, Bob Blancato, asked the candidates how they would protect the programs. “If you are 47 years old or younger … you are looking at getting …

How to Be Really Rich With Less Money

Most people define their net worth in dollars. As a financial planner, I define net worth in time. Allow me to explain. When I ask people to tell me what money means to them, I hear words like freedom, security and independence. Money, and having enough of it, allows us to do whatever it is that makes us happy. Reframing wealth as time turns some millionaires into paupers, and it makes those with $250,000 in 401(k) savings into the very …