Core Insights - The article discusses the financial challenges faced by retirees, emphasizing the need for adequate savings and planning for retirement expenses, particularly in light of Social Security benefits and healthcare costs. Group 1: Retirement Savings and Planning - The typical retired worker receives approximately $24,852 annually from Social Security benefits, combined with an additional $16,000 from personal savings, totaling $40,852, which may necessitate lifestyle adjustments for many retirees [1][6] - Financial experts recommend the 4% rule for retirement savings, suggesting that retirees withdraw 4% of their savings in the first year and adjust for inflation thereafter, aiming for a sustainable income over 30 years [3][4] - A study by Northwestern Mutual indicates that many Americans believe they need around $1.26 million saved for a comfortable retirement, highlighting a significant gap for individuals like Sam, who has $400,000 saved [4][5] Group 2: Retirement Expenses - The average annual expenditure for Americans aged 65 and older was reported to be $61,432 in 2024, indicating that relying solely on $40,852 could lead to a financial shortfall unless retirees live frugally [8] - To meet the average expenditure, individuals like Sam would need approximately $914,500 saved by retirement, factoring in Social Security benefits [8] - Healthcare costs are a significant consideration, with typical expenses for a 65-year-old projected to be $172,500 throughout retirement, emphasizing the importance of planning for these costs [9] Group 3: Investment Strategies - The article suggests diversifying retirement savings through various accounts, including gold IRAs, which can provide tax benefits and protect against market volatility [11][12] - Wealthfront offers a Cash Account with a competitive APY of 4.05%, which can help retirees grow their emergency funds while maintaining easy access to cash [19][20] - Automated investment platforms like Acorns can facilitate saving and investing habits, allowing individuals to grow their wealth effortlessly [22][23] Group 4: Seeking Professional Advice - The complexity of retirement planning may necessitate consulting with financial advisors who specialize in retirement strategies, helping individuals navigate budgeting and investment decisions [24][26] - Advisor.com connects users with registered investment advisors, providing a resource for individuals seeking tailored financial guidance [25][26]

Since 2002, retirement savers age 50 and over have had the option of making “catch-up” contributions to their 401(k) plans, which stack on top of the regular limits for employee contributions to tax-deferred retirement plans. The amounts were limited to $1,000 per year when they first came out but expanded to $7,500 by 2025. In addition, contributions to tax-deferred retirement plans are excluded from adjusted gross income, resulting in a lower tax bill on income that would otherwise be taxed. For exampl ...

Core Insights - A significant number of employees are opting to cash out their 401(k) plans when leaving a job, which is not considered a wise choice for retirement planning [4][6]. 401(k) Options When Leaving a Job - Employees have four basic options for handling their 401(k) upon leaving a job: 1. Keep it with the old employer, though if the balance is under $5,000, the employer may force a cash-out or transfer [5]. 2. Rollover to an Individual Retirement Account (IRA), allowing for a wider range of investment options and the ability to contribute periodically [5]. 3. Rollover to a new employer's plan, consolidating retirement savings in one place [5]. 4. Cash it out, which is the least favorable option for long-term retirement planning [5]. Harvard's Findings - A study by Harvard Business Review revealed that from 2014 to 2016, 41.4% of surveyed employees cashed out at least part of their 401(k) balance when leaving a job, with 85% of those individuals withdrawing their entire balance [6]. - The study suggests that cashing out is detrimental as it halts the growth of retirement funds in the market [6]. Reasons for Cashing Out - The high rate of cashing out is attributed to poor communication with departing employees, who often receive minimal guidance and may choose the simplest option of taking the money [7].

While the youngest millennials today are roughly 30 years old, older millennials may be well into their 40s. And when you're in your 40s -- especially your mid-40s -- it's time to get serious about retirement savings. As of 2025's third quarter, the average millennial's 401(k) balance was $80,700, according to Fidelity. Is that a strong number? Well, it depends. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now, when you join Stock A ...

Don't let your savings efforts go to waste.The money to fund your retirement has to come from somewhere. And you shouldn't expect it to come from Social Security alone.Those benefits might replace about 40% of your pre-retirement income if you earn an average paycheck. But most retirees need considerably more than 40% of their former pay to live comfortably. And it's important to save on your own to bridge that gap. If you have access to a 401(k) plan through your job, you have a prime opportunity to build ...

Senator Elizabeth Warren of Massachusetts, one of the most vocal advocates for consumer financial protections, has recently raised the alarm over the Trump administration’s push to allow cryptocurrency investments into ordinary workers’ retirement plans. President Donald Trump signed an executive order in 2025 opening the door to so-called “alternative assets” to be part of retirement accounts such as 401(k) plans (1). However, the notorious volatility of these digital assets coupled with Trump’s own invo ...

Retiring early has obvious appeal — more freedom, more time and the chance to enjoy life while you’re still young and healthy. But early retirement also means your savings may need to last 40 to 50 years. That requires a strategy built on flexibility, tax awareness and careful planning. Here are the smart moves to make now to make early retirement sustainable, according to financial planners. Build Wealth Outside Traditional Retirement Accounts Having money outside of accounts like 401(k) plans and IRA ...

Core Viewpoint - The financial industry, supported by the Trump administration, is attempting to limit lawsuits against retirement plan fiduciaries, particularly targeting the practices of attorney Jerry Schlichter, who has successfully litigated against excessive fees in retirement plans [1][5][20] Group 1: Legal Landscape and Industry Response - Schlichter has successfully sued major companies and institutions, resulting in over $750 million in settlements since 2006, with notable cases including ABB's $55 million settlement in 2019 and Boeing's $57 million settlement in 2015 [2][3][15] - The Trump administration is preparing to implement a "safe harbor" for private assets in 401(k) plans, making it more difficult to sue plans that demonstrate proper investment scrutiny processes [5][6] - The number of lawsuits related to retirement plan fees has surged, with nearly 450 lawsuits filed from 2020 to September 2021, primarily targeting plans with over $500 million in assets [17][18] Group 2: Investment Strategies and Risks - The introduction of private equity and alternative funds into 401(k) plans is seen as a significant shift, with proponents arguing that these investments could potentially increase returns by an average of 0.50% per year over a 40-year period [4][8] - However, these private assets typically come with higher fees and less liquidity compared to traditional stock and bond index funds, raising concerns about their suitability for retirement investors [9][11] - Schlichter warns that the inclusion of private equity in retirement plans could expose fiduciaries to greater risks and complicate their responsibilities, as these investments are often opaque and expensive [11][10] Group 3: Industry Perspectives and Future Outlook - Financial firms argue that private credit strategies can provide significant value to investors, countering the trend of focusing solely on costs [7] - The current regulatory environment is causing companies to be more cautious in their retirement plan offerings, as the fear of litigation may stifle innovation [18] - Despite the changing political landscape, Schlichter remains committed to pursuing legitimate cases, emphasizing that judicial decisions will ultimately shape the law [20]

Core Insights - T. Rowe Price's annual 401(k) benchmarking report highlights that participants utilizing financial advice, education, or tools have an average account balance that is twice as high as non-users and save at a rate 29% higher than those who do not engage with these resources [1][1][1] Group 1: Participant Behavior - Only 13.8% of participants currently utilize financial advice, education, or tools available through their workplace retirement site [1] - Participants in their 50s and 60s tend to increase their savings rates by an average of 1.4 percentage points annually, surpassing typical automatic increase defaults [1][1] - Less than 2% of participants with below-average retirement savings make catch-up contributions, while 15% of those with above-average savings do [1] Group 2: Plan Design and Features - Plans with automatic enrollment see 99% of participants either maintain or increase their default savings rate, indicating the long-term benefits of effective plan design [1] - Plans that offer emergency expense withdrawals have a participation rate of 76%, compared to 67% in plans without such features [1] - Seventy-eight percent of plans have adopted at least one optional SECURE 2.0 provision, with higher catch-up limits and self-certified hardships being among the most popular [1] Group 3: Roth Contributions - Plans that include a Roth employer contribution experience 30% higher Roth participation rates, 29% higher Roth balances, and 6% higher Roth savings rates compared to those without a Roth match [1] - Younger participants are particularly inclined to utilize Roth options [1] Group 4: Company Overview - T. Rowe Price manages $1.80 trillion in client assets as of January 31, 2026, with approximately two-thirds of these assets being retirement-related [1] - The firm has over 85 years of experience in investment excellence and retirement leadership, focusing on client interests and integrity [1]

Core Insights - Retirement savings are a significant concern for many Americans, with 47% of individuals aged 45 to 54 worrying about their savings daily, and nearly half of those in their 40s and 50s lacking confidence in their retirement readiness [2][8] Group 1: Retirement Savings Strategies - Starting to save early allows young investors to benefit from compound interest, potentially tripling or quadrupling their investments by retirement, with average stock market returns of 6% to 7% [4] - Regular savings through automated contributions can help grow retirement funds and alleviate anxiety about financial security [5] - Establishing an emergency fund with three to six months of living expenses in a high-yield savings account can prevent the need to withdraw from retirement savings for unexpected costs [6] Group 2: Utilizing Retirement Accounts - Utilizing tax-advantaged retirement accounts like 401(k) plans, especially those with employer matching contributions, is crucial for building retirement savings, with a recommended investment of 10% to 15% of each paycheck [7][8]