New survey findings reveal how a lack of guidance contributes to abandoned rollovers and billions in stranded assetsNEW YORK, Nov. 18, 2025 (GLOBE NEWSWIRE) -- Each year, up to 2 million old 401(k) accounts are automatically forced out of employer plans and placed into low-yield Safe Harbor IRAs, often without their owners’ knowledge. New sentiment data by PensionBee reveals that nearly two-thirds of Americans (63%) with left-behind 401(k)s are unaware that this practice exists or that it can derail retirem ...

Photo: Pressmaster/Envato Moneywise and Yahoo Finance LLC may earn commission or revenue through links in the content below. What is the major fear preventing retirees from enjoying retirement? Depleting their savings. The average American between the ages of 65 and 74 had about $609,000 in retirement savings, according to the most recent survey by the Federal Reserve. Moreover, a solid 79% of retirees between the ages of 65 and 80 say they have enough money to live comfortably in retirement, according ...

Industry Trend - Private equity firms are increasingly involved in the life insurance and annuity sectors, managing trillions of dollars of American savings [1] - These firms are shifting investments towards complex and private markets, including subsidiaries in Bermuda and the Cayman Islands [1] Investment Strategy - Wall Street firms claim to enhance insurer investment strategies to meet obligations and offer higher returns [1] - Concerns arise regarding the use of offshore reinsurers, opaque accounting, and private market investments, which may mask underlying vulnerabilities [1] Risk and Challenges - A Pennsylvania steelworkers group filed a lawsuit to protect their retirement funds from being managed by a private equity-owned entity [1] - The collapse of PHL Variable, a life insurer, could result in a $2.2 billion shortfall, potentially impacting policyholder payouts [1] - Industry experts caution that hidden fragilities could lead to cash shortages, fire sales, or failures if a significant economic downturn occurs [1]

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Core Insights - The IRS has announced the contribution limits for 401(k) and other tax-advantaged retirement accounts for the upcoming year, allowing workers to save more for retirement [3][4]. - The new contribution limit for 401(k) accounts is set at $24,500, an increase from $23,500 in the previous year, while traditional IRA contributions can now reach $7,500, up from $7,000 [3][4]. - The announcement is particularly significant in light of new tax breaks introduced by recent legislation, which may incentivize higher contributions to 401(k) plans to manage taxable income [2][5][6]. Contribution Limits - Workers can contribute up to $24,500 in 401(k) plans and similar accounts, marking a $1,000 increase from the previous year [3]. - Traditional IRA contribution limits have also increased to $7,500, providing additional savings opportunities for individual savers [3]. Tax Planning Implications - The new contribution limits serve as a tax-planning tool, especially for those looking to stay below income thresholds established by new tax laws [5][7]. - Financial advisers suggest that maximizing 401(k) contributions can help individuals reduce their taxable income, thereby benefiting from the new tax breaks [6][7]. Participation Rates - According to Vanguard research, only about 14% of individuals contributed the maximum allowable amount to their 401(k) plans in 2024, indicating a potential area for growth in retirement savings [9]. Benefits for Older Workers - The IRS update includes provisions that allow older workers (ages 50 to 59) to save more in their retirement accounts, which is a positive development for this demographic [10][11].

Core Insights - The article discusses the impact of market sell-offs driven by growth concerns, leading to a decline in futures [1] Group 1: Market Overview - Futures have fallen following a market sell-off primarily influenced by growth-related fears [1] Group 2: Investment Tools - Health savings accounts (HSAs) are highlighted as beneficial for retirement investors due to their tax-advantaged nature and the ability to invest HSA assets [1] - HSAs can be opened alongside high-deductible health plans (HDHPs), providing a dual benefit of medical savings and investment growth [1]

Core Points - The Saving for the Future Act aims to enhance retirement security for Americans and assist in building emergency funds through employer contributions to retirement accounts [1][4] - Companies with 10 or more employees would be required to contribute at least $0.50 per hour worked to each employee's retirement account, increasing to $0.60 after two years [2] - Workers at smaller companies would utilize federal universal personal (UP) accounts, which would allow for low-fee savings that are portable between jobs [2] Contribution Structure - The first $2,500 saved would be allocated to an UP-Savings account for emergencies, while additional savings would go into an UP-Retirement account [3] - Workers would automatically contribute 4% of their pay, with the option to adjust their contribution rate up to 10% [3] Financial Projections - A worker contributing the default 4% and receiving the minimum employer contribution could accumulate approximately $750,000 by retirement, assuming annual withdrawals of $800 from the UP-Savings account [4] - Without any withdrawals, the retirement balance could exceed $910,000 [4] - If a worker opts out of contributing, the employer's contribution alone is projected to grow to about $250,000 by retirement [5] Legislative Background - The Saving for the Future Act was previously introduced in the 2019-2020 session with support from various Democratic lawmakers [6]

Core Insights - Millennials' total net worth has increased significantly, rising from $3.94 trillion in Q3 2019 to $15.95 trillion in Q3 2024, nearly quadrupling in five years [1] - The wealth accumulation of millennials has outpaced that of older generations during the post-pandemic period [1] Investment Behavior - During the pandemic, millennials utilized time and stimulus money to invest, redirecting their finances towards investment opportunities [2] - Wealthfront's analysis indicates a 144% increase in the proportion of millennial clients who are millionaires over the last five years, compared to a 31% increase among Gen Xers [3] Investment Strategies - Millennials have adopted time-tested investment strategies more consistently than older generations, maintaining stable monthly deposits even during market disruptions [4] - A long-term investing mindset has allowed millennials to benefit from significant market appreciation [4] Real Estate Impact - The surge in home prices from 2020 to 2024 has contributed approximately $2.5 trillion to millennials' net worth, with homeowners experiencing substantial equity growth [5] - Despite rising mortgage rates, those who purchased homes earlier in the pandemic have seen considerable appreciation in their property values [5] Retirement Savings - Millennials' IRA balances have increased by over 110% since March 2020, significantly outpacing the growth of IRA balances held by Gen X [6] Financial Success Strategies - The wealth boom among millennials is attributed to consistent investment practices and a proactive approach to savings, suggesting that automating savings can lead to financial success [7]

247 Wall st Millions of Americans save little or nothing for retirement and end up relying on Social Security alone. So if you’ve managed to build up a 401(k), you’re already ahead of the game. But personal-finance expert Dave Ramsey says that even those with solid savings can make one costly mistake — using their 401(k) for something other than retirement. Recently, a caller asked Ramsey if she should cash out her 401(k) to pay off credit card debt and make a down payment on a house. Her rent was risin ...

Core Insights - Achieving a $5 million retirement savings is a significant milestone, but it should be viewed as a checkpoint rather than a finish line [1][3] - The focus should be on the adaptability of the retirement plan to changing circumstances rather than just the total savings amount [2][3] Retirement Planning - Financial experts emphasize the importance of creating a retirement plan that can withstand inflation, healthcare costs, and tax changes [3][4] - A durable income stream is more critical than the account balance itself; consistent, purpose-driven income streams are recommended [4] Portfolio Management - A balanced portfolio with a withdrawal rate of 3% to 4% can support annual withdrawals of approximately $150,000 to $200,000 before taxes [5] - To stop saving at the $5 million mark, the portfolio must meet specific criteria, including coverage of near-term spending and long-term growth investments [5][6] Early Retirement Considerations - For those planning to retire early or with high spending rates, continued saving and a refined tax strategy are advised [6]