There's a reason it makes sense to save for retirement in a 401(k) if you have access to one. Not only do these retirement plans make it easy to stay on track with your savings (since they're funded from your paychecks directly), but many 401(k)s come with a workplace match. But there's a big drawback to using a 401(k) to save for retirement. If you take a distribution before turning 59 1/2, you'll generally be subject to an early withdrawal penalty of 10%. So if you're 45 and tap your traditional 401(k) ...

Core Insights - Many Americans neglect the significant expense of health care, particularly long-term care, in their retirement planning, with one in five overlooking this cost [2] - A substantial majority (80%) of individuals aged 65 and older will require some form of long-term care, with 40% needing high-intensity care lasting over a year [2] - Only 3% of Americans, or 15% of those aged 65 and older, possess long-term care insurance, largely due to misconceptions about Medicare coverage [3] Long-Term Care Costs - Long-term care costs vary significantly by state, with states like California and New York having higher costs due to elevated living expenses, labor costs, and real estate prices [5] - In contrast, states such as Mississippi and Texas offer long-term care at approximately half the cost of that in California and New York [5] - Mississippi is identified as the most affordable state for senior care, featuring a low cost of living and reputable home care services [6]