It’s tempting to assume that your retirement date and your first Social Security check will arrive at the same time. But for many retirees, that’s not how it works out. According to a MassMutual survey, the average retirement age in 2024 was 62, (1) while most Americans don’t start claiming Social Security until age 65, according to AARP. (2) That leaves a gap of roughly three years where retirees have to fund their lifestyle entirely from their own savings. Must Read If you’re among those planning to r ...

Portrait, black man on mountain and excited with exercise, celebration and view for fitness, happiness and hiking. Face, African American male athlete and mature gentleman with smile and traininggettyThis little-known Roth strategy can help high income earners save 100’s of thousands more in tax-free retirement income - if you know how to use it.Roth IRAs have long been a favorite among savers who want tax-free growth, but for high income earners, contribution limits can feel like a ceiling. Cue the Mega Ba ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. A 27-year-old finance worker who inherited $1 million from his late mother wrote on Reddit, "I just feel stupid fretting over a 6% match," referring to his company's retirement plan. He earns $120,000 a year and said he's unsure whether to keep saving now that the inheritance is held in a trust. In a post shared on Reddit's r/Fire, the original poster explained that he doesn't plan to draw from the trust e ...

Core Insights - PensionBee has announced a partnership with Madison Square Garden Entertainment to become an official College Hoops Partner, aiming to enhance financial education among college basketball fans [1][2] Company Overview - PensionBee is a leading retirement savings provider managing over $9 billion in assets and serving approximately 300,000 customers globally, focusing on simplicity, transparency, and accessibility [4] - The company offers various types of IRAs, including Traditional, Roth, SEP, and Safe Harbor IRAs, utilizing portfolios powered by high-quality ETFs from State Street Investment Management [4] Partnership Details - As part of the partnership, PensionBee will receive prominent digital signage placement in the arena during key college basketball games, targeting the issue of over a trillion dollars in orphaned 401(k) assets left by Americans when changing jobs [2][3] - The collaboration aims to support individuals at different stages of their financial journey, from recent graduates to seasoned professionals managing multiple retirement accounts [3]

Core Insights - A significant portion of Americans over 50 are facing retirement savings challenges, with 20% having no retirement savings and 61% concerned about insufficient funds for later years [2] - The average Social Security payment is $2,006.69 per month, but early claimants may receive significantly less [2] - There are actionable steps individuals can take to improve their financial situation, including increasing income, utilizing available benefits, and reducing fixed costs [3] Financial Strategies - Many Americans believe they need approximately $1.26 million to retire comfortably, a figure derived from historical market data and withdrawal rate rules [4] - The 4% withdrawal rule, established by financial planner William Bengen, suggests that a balanced portfolio can sustain a 30-year retirement, but individuals can manage with less if they economize [5] - Delaying Social Security benefits until full retirement age or age 70 can significantly increase monthly payments, with a potential increase of about 8% per year after full retirement age [6]

Core Insights - The perception of wealth in retirement often revolves around large figures, but having $1 million or more places individuals in the top 3% of U.S. retirees [1][2] - Financial experts suggest that even $1 million may not be sufficient for retirement, with recommendations of aiming for at least $10 million due to underestimations of retirement costs [3] - A significant portion of U.S. households, 54%, have no retirement savings, highlighting the disparity in retirement preparedness [4] Retirement Savings Data - According to Northwestern Mutual's 2025 Planning & Progress Study, Americans estimate needing $1.26 million for a comfortable retirement, a decrease from $1.46 million in 2024, yet still significantly higher than the median savings of those nearing retirement [5] - In early 2025, 401(k) contribution rates reached a record high of 14.3%, indicating that those with access to retirement plans are saving more, although many still do not participate [6] Age-Based Savings Statistics - Median and mean retirement savings vary significantly by age group, with the following data: - Under 35: Median $18,800; Mean $49,130 - Ages 35–44: Median $45,000; Mean $141,520 - Ages 45–54: Median $115,000; Mean $313,220 - Ages 55–64: Median $185,000; Mean $537,560 - Ages 65–74: Median $200,000; Mean $609,230 - Ages 75 and over: Median $130,000; Mean $462,410 [8]

Core Insights - The current economic environment is creating a dilemma for young professionals, particularly for a 30-year-old woman in a high-cost-of-living area, who must choose between saving for a house down payment or investing for retirement [1][2] Financial Position - The individual has a take-home pay of approximately $7,400 per month and $100,000 saved in a high-yield savings account, along with $60,000 in her retirement account [2] Retirement Contributions - She is currently contributing 5% to her 401(k) to secure a 4% employer match but is uncertain if this is sufficient for her retirement savings [3][6] Community Responses - The Reddit community offers mixed advice, with some emphasizing the importance of saving for retirement while others highlight the security that homeownership can provide in retirement [4][5] Long-term Considerations - A commenter advises prioritizing retirement accounts, suggesting that time is crucial for retirement savings, and recommends maximizing contributions to 401(k) and ROTH accounts before saving for a house [5] - Another response points out that owning a home outright can reduce dependency on income and provide stability during retirement, especially in the face of financial challenges [6]

Retirement Planning - Understanding Roth 401(k) withdrawal rules is crucial to avoid taxes and penalties on retirement savings [1]

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. At 61, Robert is recovering from shoulder surgery and out on medical leave from his job as a utility line supervisor. His short-term disability income covers part of his paycheck, but not enough to manage the mortgage, utilities, groceries — and now, a $32,000 fall tuition bill that just landed in his inbox. His youngest daughter, a sophomore at an out-of-state public university, lives in a campus dorm. Th ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. A recent study by BlackRock and Human Interest reveals an eye-catching gap in retirement savings between workers with access to employer-sponsored retirement plans and those without. The data shows that median-income employees lacking workplace retirement benefits saved one-eighth as much as those with employer-sponsored retirement plans. And by the time they retire, these workers could have almost $625,00 ...