Even 75% of Americans in the best 401(k) plans won’t have enough to retire (via HowardRGold)
We all know how woefully unprepared Americans are for retirement. But a new study tells an even more sobering tale: Three of every four participants in the best corporate 401 retirement plans won’t have enough to cover their post-retirement living expenses.
Ravina explained that she and the other researchers boiled the sample down to a still-huge 300,000-plus people, then ran multiple simulations based on various real-world events plans) that could affect retirement savings. Their benchmark: Would retirees have enough, along with their Social Security and Medicare benefits, to fund 80% of their pre-retirement income plus retiree medical expenses, which Fidelity estimates at $285,000 per couple?The answer is no, not by a long shot.
The best thing that ever happened to most investors was the Pension Protection Act of 2006, which allowed companies to automatically enroll employees in 401 plans and make their default investments balanced or target funds.
2. The government should limit retirement-plan withdrawals. Early withdrawals from retirement plans not only reduce the absolute amount people will have later on, they also prevent the withdrawn funds from compounding tax-free over many years. Plus, if you take your money out of a retirement plan before you turn 59 ½, you’ll pay taxes and a 10% penalty. Ravina wants to extend that a few years, making withdrawals penalty-free only from age 65 on.
México Últimas Noticias, México Titulares
Similar News:También puedes leer noticias similares a ésta que hemos recopilado de otras fuentes de noticias.
The 'Amazon of Africa' soars more than 75% on its first day of tradingJumia operates in 14 African countries and has 4 million active customers, the company says.
Leer más »
Heart rate of 75 beats per minute linked to doubled risk of early death'This research should serve as a reminder for us all to know our numbers, blood pressure, cholesterol and weight, as well as our resting heart rate,' a cardiac nurse told Newsweek.
Leer más »
'World's most dangerous bird' kills 75-year-old man in Florida: OfficialsA 75-year-old man was attacked and killed by a large exotic bird he kept as a pet on his property in Florida, known to experts as the 'world’s most dangerous bird,' authorities said.
Leer más »
Flash floods kill over 75, damage homes in South AsiaThunderstorms have affected several states in India and Pakistan killing 72 people and damaged homes and downed trees. In neighbouring Afghanistan, at least five people have died and 17 reported missing.
Leer más »
A Pilot's Death Was Likely Caused By His Large Dog In The Plane's Passenger SeatA federal investigation found that Iowa the pilot's 75-pound labradoodle often flew in the plane.
Leer más »
Even with Fed support volatility won't leave markets, IMF's Lipton warnsThe first deputy managing director of the IMF tells CNBC that with global risks finely balanced, policymakers must take care to 'do no harm.'
Leer más »