Deciding how to use Social Security checks can be daunting. The program replaces only about 40% of pre-retirement income on average, so every dollar matters. Read More: 3 Little-Known Social Security Rules That Could Save You Thousands Check Out: Mark Cuban Says Trump's Executive Order To Lower Medication Costs Has a 'Real Shot' -- Here's Why GOBankingRates asked experienced financial planners for practical strategies to simplify choices. Their advice covers budgeting essentials, coordinating with other i ...

Retirement Plan Overview - Qualified retirement plans adhere to government guidelines safeguarding employee savings [1] - These plans typically offer tax advantages to both employees and employers [1]

Core Insights - The article emphasizes the importance of establishing a solid retirement plan to achieve personal dreams and financial security in retirement [1] Group 1: Retirement Accounts - The 401(k) or 403(b) is highlighted as a foundational element of a solid retirement plan, with many individuals neglecting to actively manage their contributions [3][4] - Approximately 25% of savers are not contributing enough to qualify for maximum employer matching contributions, which can lead to significant financial losses [4] - The Roth 401(k) is introduced as a beneficial option that combines features of traditional 401(k) and Roth IRA, allowing for after-tax contributions and tax-free withdrawals in retirement [5][6] Group 2: Tax Benefits - The Roth 401(k) offers long-term tax benefits, as contributions are made with after-tax dollars, and withdrawals during retirement are completely tax-free [7]

U.S. Retirement System Challenges - U.S Social Security is facing insolvency by 2033, potentially leading to a 20% benefit cut if the trust fund runs short [1] - The U S retirement system received a C+ rating from the Mercer CFA Institute Global Pension Index in 2024, indicating a solid system with significant risks [1][2] - 401(k) system may not be effective as funds are often withdrawn before retirement for various needs [3] - By 2050, the world could face a $400 trillion shortfall in retirement savings, with the U S being a major contributor to this problem [29] - In 2019, the estimated loss of savings due to 401(k) cash outs ranged from $60 billion to $105 billion [19] Global Comparison and Solutions - Countries are raising retirement ages and requiring mandatory contributions to address issues like longer lifespans and fewer workers paying into the system [4] - A grade retirement systems often feature a net replacement rate of at least 65% for median income earners, private pension coverage of at least 80% of the working-age population, and pension contributions of at least 12% of wages [5][6] - The Netherlands, with its mandatory contributions, serves as a model, transitioning from defined benefit to defined contribution plans [7][9][10] - Australia's mandatory defined contribution plan, covering everyone, is highlighted as a successful approach [11] U.S. Strengths and Weaknesses - U S retirement plan assets are 250% (two and a half times) the median of OECD countries, indicating high savings rates [14] - Despite high savings, the median retirement savings for baby boomers is zero, highlighting inequality [15] - While 70% of U S workers had access to a retirement plan as of March 2023, only 53% participated, indicating a coverage issue [17] - The U S system's voluntary nature and allowance of pre-retirement withdrawals are criticized, but the high savings rates and retirement incomes suggest some success [10][13][34]

Group 1 - The article discusses the inadequacy of Social Security for a decent retirement and suggests alternative retirement plans [1] - It highlights the importance of exploring various income alternatives such as REITs, mREITs, Preferreds, BDCs, MLPs, and ETFs for retirement planning [1] Group 2 - The article emphasizes the need for in-depth research on investment options to secure financial stability in retirement [1]

Retirement Plan Enrollment - Vanguard 报告显示，18% 有资格通过雇主参与退休计划的员工未注册 [1]