CHICAGO (Reuters) – When you change jobs, do you take the money and run? A large and growing number of young and low-income workers do just that with their 401(k)s, and it’s damaging their chances of building adequate retirement savings down the road.
Data released today by Fidelity Investments shows that 35 percent of all participants in plans it administers cashed out their 401(k) balances when leaving their jobs last year, and the trend was even worse for young and lower-income workers. Four out of 10 workers (41 percent) age 20 to 39 cashed out, and 51 percent of workers who left jobs grossing under $30,000 cashed out.
CHICAGO (Reuters) – “Without Social Security, nearly half of seniors would be living in poverty,” President Barack Obama said last month, noting the 50th anniversary of the war on poverty. “Today, fewer than one in seven do. Before Medicare, only half of seniors had some form of health insurance. Today, virtually all do.”
Is the war on elder poverty over? Fewer older Americans are poor than any other age group – we heard that often in retrospectives on the war on poverty, and it comes up often in debates about possible cuts to programs like Social Security and Medicare.
CHICAGO (Reuters) – Is President Obama’s health reform law a job killer? Republicans seized on a new high-profile analysis of the Affordable Care Act this week to ram home that oft-repeated talking point.
But the report, issued this week by the Congressional Budget Office, actually says something quite different: Jobs won’t be destroyed, but more Americans will choose to work fewer hours because of the ACA’s structure, which subsidizes the cost of health insurance for households with low- and middle-range incomes.
CHICAGO (Reuters) – If states are the laboratories of democracy, they need to start some retirement savings experiments – quick. About half of Americans haven’t been able to create nest eggs at all, and the labs working the problem in Washington haven’t found solutions.
That’s my take on MyRA, the retirement saving program President Barack Obama announced during his State of the Union address last week. MyRA – My IRA, if you will – aims to help workers at companies that don’t have retirement plans set aside small amounts from their paychecks in a savings bond-like product.
CHICAGO (Reuters) – You’re getting ready to retire, and need to navigate the transition from your employer’s health insurance plan to Medicare. Where do you go for help? If you’re guessing your human resources department, you may be guessing wrong.
Transitioning to Medicare from your employer’s health insurance presents some complex challenges – and missteps can result in costly premium penalties and coverage gaps. But consumer experts who provide Medicare enrollment assistance say employers don’t always provide the right answers.
CHICAGO (Reuters) – Jeffrey Nash saw the handwriting on the wall a few years ago, and the message wasn’t good. A 56-year-old salesman for a large men’s clothing retailer in Las Vegas, his base pay had been cut 40 percent and he faced stiff competition from younger, lower-compensated sales staff. He knew the job wouldn’t last much longer.
Nash was too young to retire, and knew he needed a Plan B. Looking for a business he could start, inspiration struck. Watching a young mother teaching her toddler how to walk, he mused about a baby walker that would help parents assist their kids with first steps without being forced to bend over and strain their backs.
CHICAGO (Reuters) – A growing number of seniors who think they’ve been hospitalized are finding that they really weren’t.
The problem isn’t memory loss, confusion or dementia. Instead, seniors on Medicare who did in fact spend multiple nights in the hospital are learning later on that they weren’t formally admitted. Instead, they had “observation status” – a Medicare classification that can cost seniors thousands of extra dollars if they need post-hospital nursing care.
CHICAGO, Jan 21 (Reuters) – Affluent Americans are showing a
growing preference for paying taxes on their retirement savings
sooner rather than later.
Data released earlier this month by the Internal Revenue
Service shows that conversions from tax-deferred individual
retirement accounts to Roth IRAs increased ninefold in 2010, to
$64.8 billion. That was the first year when a $100,000 income
limit on eligibility to convert was eliminated – and it marked
the first time the amount of assets converted to Roths exceeded
CHICAGO, Jan 16 (Reuters) – This is the time of year when
many of us take stock of our financial plans. New Year’s
resolutions are in place, and tax season is just around the
But when it comes to retirement planning, the resolutions
shouldn’t just revolve around how much you’ll sock away this
year. It’s just as important to get a handle on how much you’ll
need to spend when you retire.
CHICAGO (Reuters) – Regulators are sending a clear warning: Beware the IRA rollover.
The Financial Industry Regulatory Authority (FINRA), which self-polices the brokerage industry, issued a regulatory notice late last month warning member firms against overselling clients on shifting retirement dollars from 401(k)s to individual retirement accounts when they retire or change jobs.