Core Insights - The rising credit card debt among baby boomers and Generation X is a significant financial concern, with average balances reaching $9,600 for Gen X and $6,795 for baby boomers [2] - Financial experts suggest that tapping into retirement accounts to pay down high-interest credit card debt can be a viable option, especially for those nearing or in retirement [3][4] Group 1: Credit Card Debt Situation - Credit card balances have increased significantly in 2025, creating a financial burden for many Americans [2] - The oldest Gen X-ers are now reaching retirement age, raising concerns about managing high-interest debt without a steady income [2][3] Group 2: Retirement Account Considerations - Financial advisors typically advise against withdrawing from retirement accounts, but in cases of crippling debt, it may be a necessary option [3][4] - Experts highlight that using retirement savings to pay off one-time emergency debt can be beneficial [7] Group 3: Alternative Strategies - Financial planners recommend considering alternatives to enhance income during retirement, such as delaying retirement, working part-time, or reducing discretionary spending [8]

Key Points The 4% rule is designed to help ensure that people don't deplete their retirement savings too soon. The rule makes certain assumptions about spending that may not apply to you. It's perfectly okay to stray from the 4% rule as long as you have a plan. The $23,760 Social Security bonus most retirees completely overlook › There's a reason so many people push themselves to save for retirement. You may end up needing a lot more than Social Security once your career comes to a close and you ...

Key Points With an HSA, you get to decide how much to spend and how much to save for retirement. It's possible to invest the funds in your HSA, allowing them to take advantage of compound interest. As long as they're used for qualified medical expenses, withdrawals from an HSA are tax-free. The $23,760 Social Security bonus most retirees completely overlook › If the first thing you thought upon learning your company offered only a high-deductible health plan (HDHP) was, "Well, nuts," there's some ...

Benzinga and Yahoo Finance LLC may earn commission or revenue on some items through the links below. We all know that comparing ourselves to others can be a slippery slope, but when it comes to retirement savings, it's hard not to wonder: Am I doing better or worse than the average saver? Checking where your 401(k) balance sits can give you some insight, but remember – your retirement is your own journey and no two paths are the same. What's the Average 401(k) Balance? According to Vanguard's How America ...

Core Points - The Social Security Fairness Act, signed into law by former President Joe Biden, expands benefits for public workers, but critics warn it may accelerate the depletion of Social Security trust funds [1] - The Social Security program has been paying out more in benefits than it collects in revenue since 2021, with projections indicating a funding shortfall [2][4] - The Social Security Board of Trustees projects that the combined trust funds will cover scheduled benefits in full until 2034, after which only 81% of benefits will be payable [5] Group 1: Financial Implications - In 2024, Social Security costs are projected at $1.48 trillion, while revenue is expected to be $1.42 trillion, resulting in a $67 billion decline in funds [4] - The Committee for a Responsible Federal Budget estimates that the One Big Beautiful Act (OBBBA) could accelerate the insolvency of the Social Security trust to 2032, potentially leading to a 24% cut in retirement benefits [4] Group 2: Policy and Operational Challenges - The Social Security Administration (SSA) plans to cut 12% of its staff, approximately 7,000 positions, which critics argue may negatively impact services [6] - A recent government shutdown has caused operational delays, including the temporary pause of benefit verification and updates, as well as the delay of the cost-of-living adjustment announcement for 2026 [7] Group 3: Retirement Planning Strategies - Many Americans rely heavily on Social Security, with over seven million individuals over 65 receiving 90% of their income from these benefits [8] - To mitigate reliance on Social Security, individuals are encouraged to maximize retirement accounts, invest wisely, and explore passive income sources [9][10] - Delaying Social Security benefits until age 70 can result in a larger monthly check, providing a strategic option for retirement planning [17]

Core Insights - Starting to save for retirement early is crucial, especially for those under 40, as it allows for more time for compound interest to grow savings [1][2] - Retirement planning should focus on "retirement readiness" rather than just the number of years until retirement, taking into account lifestyle, investment performance, and inflation [4][5] Group 1 - Individuals retiring in their 60s may need to fund an additional 30 years of life, making early savings essential to avoid financial strain later [3] - Starting to save in one's 20s can significantly increase savings due to compounding; for example, saving $200 monthly at an 8% return can grow from $10,000 to over $404,000 in 40 years [6] - Many millennials are underprepared for retirement, with estimates suggesting they may need between $5 million to $7 million saved by age 65 for a confident retirement [7] Group 2 - Utilizing employer-sponsored 401(k) plans, especially those with matching contributions, is recommended as a primary savings vehicle for retirement [7] - If a 401(k) is unavailable, individuals can still build retirement savings through IRAs, Roth IRAs, and brokerage accounts [7]

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Core Insights - The article discusses the considerations for rolling over funds from a 401(k) to an IRA, emphasizing the potential benefits and drawbacks of keeping retirement savings in cash versus investing them for growth [2][3][6]. Group 1: Rollover Considerations - Rolling over money from a 401(k) to an IRA can provide more investment options and greater control over retirement accounts [7][9]. - Keeping the full balance of an IRA in cash may undermine the benefits of tax-deferred growth, potentially leading to lost earnings and diminished purchasing power over time [2][3]. Group 2: Investment Strategy - It is suggested that if the funds are not needed for regular monthly expenses, it may be more beneficial to keep them invested in the 401(k) rather than moving them to cash in an IRA [2][3]. - Funding a separate emergency fund with disposable income in a regular taxable account could allow retirement accounts to continue growing tax-deferred [3]. Group 3: Tax Implications - Direct rollovers to traditional IRAs are tax-free, but withdrawals will be subject to income tax, while converting to a Roth IRA incurs a current tax bill but allows for tax-free qualified withdrawals [8].

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Core Insights - The cost of a comfortable 20-year retirement in the U.S. varies significantly by state, requiring savings ranging from less than $800,000 to over $2 million [1][2] - GOBankingRates conducted a state-by-state analysis to determine the average cost of living and additional savings needed for retirement [2][3] State-by-State Analysis - Hawaii has the highest retirement cost, requiring over $2.3 million, with a monthly saving of approximately $5,500 starting at age 30 [4] - West Virginia offers the most affordable retirement option, needing around $770,000, translating to monthly savings of $1,833 starting at age 30 [4] - Fifteen states require monthly savings of more than $3,000, with California and Massachusetts being the next most expensive after Hawaii, both needing over $4,000 per month [4][5]