Morsa Images / Getty Images Key Takeaways Having extra savings in retirement is a good goal to have. Start by saving and investing early, investing aggressively, and maximizing tax-advantaged retirement accounts. Automating your investments is a good strategy to use. If you are uncertain how to invest for your retirement, reach out to a fiduciary financial planner for advice. It’s a good problem to have: having too much money saved for retirement and having additional money to leave to your heirs. ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I’m 54 with 26 years of service as a nurse. We go by the rule of 80 (your age plus years of service = 80) on our retirement plan. It will cover my health insurance. My pension will be around $7,000 per month minus taxes. I have a combined $750,000 in a 403(b) and Roth IRA. I also have $150,000 in stocks that aren’t doing well, $250,000 in real estate property earning $600 per month and $100,000 in cash. Can ...

According to a recent report from PNC Bank, there’s a striking mismatch in beliefs about retirement readiness between American employers and employees. The study highlights that 78% of U.S. employers believe their staff are at least somewhat prepared for retirement, whereas only 45% of employees agree (1). This gap could reflect a deeper set of issues. It suggests a breakdown of communication issues between employers and employees, problems with benefit literacy, and financial pressures that make it diffi ...

Core Insights - Many middle-class Americans face financial challenges in retirement, often finding their savings insufficient to maintain their desired lifestyle [1][2] Investment Strategies - Maximize contributions to employer-sponsored retirement plans such as 401(k) or 403(b), especially taking advantage of any matching contributions offered by employers [4] - Consider Roth IRA conversions, which allow for tax-free withdrawals during retirement after paying taxes on the transferred amount, keeping in mind the five-year rule for withdrawals [5] - Maintain a balanced portfolio of stocks and bonds as retirement approaches, with a common recommendation of 60% stocks and 40% bonds, adjustable based on individual risk tolerance [6] - Utilize Health Savings Accounts (HSAs) if eligible, as they offer tax benefits for medical expenses, which are significant for retirees [7]

Core Insights - A significant portion of Americans, 56%, are not on track for a comfortable retirement, aligning with Morningstar's prediction that 45% of U.S. households may run out of money during retirement [1][2] Group 1: Importance of Retirement Accounts - Contributing to workplace retirement accounts is crucial, as 79% of Americans who contribute for at least 20 years will have sufficient funds for retirement [3] - For those without access to employer-led retirement accounts, individual retirement accounts (IRAs) can be a viable alternative to enhance retirement savings [5][6] Group 2: Timing of Retirement - The timing of retirement significantly impacts financial security, with the likelihood of running out of money during retirement decreasing to 28% if retiring at age 70 instead of 65 [4] Group 3: Planning for Retirement Needs - Understanding personal retirement needs is essential, with experts suggesting that retirees should plan to spend between 55% and 80% of their current income annually during retirement [8]

Core Insights - The article emphasizes the importance of growing net worth in one's 50s, as individuals are typically nearing retirement and may be in their highest-earning years [1] Financial Habits to Grow Net Worth - Maxing out retirement contributions is crucial, with catch-up contributions allowed for those over 50, enabling contributions of $8,000 to IRAs and $31,000 to 401(k) or 403(b) plans [5] - Eliminating high-interest debt is recommended to protect retirement funds, with suggestions for refinancing or consolidating debts to lower overall interest [6] - Regularly tracking net worth is advised, with quarterly reviews using tools like Empower to monitor progress and adjust savings or spending habits as needed [9] Average Net Worth by Age - The average net worth increases significantly with age, with figures such as $1,285,558 for individuals in their 50s and $1,512,799 for those in their 60s, indicating a trend of growing wealth as individuals approach retirement [7]

Core Insights - A record number of retirement savers now have $1 million or more in their 401(k)s or IRAs, with the number of 401(k) millionaires increasing by 16% to 595,000 by the end of June [1][4] - The average 401(k) balance rose to $137,800, marking an 8% increase from the previous year and a jump from $127,100 at the end of March [7] - Total average 401(k) savings rates remained steady at a record high of 14.2%, close to Fidelity's suggested savings rate of 15% [5] Retirement Saver Demographics - The average millionaire in 401(k) plans is approximately 59 years old and has been enrolled in their employer's plan for an average of 25 years [4] - These savers maintain an average individual savings rate of about 17.6%, which, when including employer matches, totals 26.2% [4] Market Behavior and Contributions - Despite market fluctuations, the majority of retirement savers did not alter their savings strategies, allowing them to benefit from market rebounds [1][5] - Only 5.5% of retirement savers changed their 401(k) asset allocation from the end of March to the end of June [5] Overall Market Trends - Average balances for 403(b) accounts increased by 9% to $125,400, while individual retirement accounts rose by 8% to $131,366 from the end of March [7] - The data is derived from 25,600 defined-contribution plans covering 24.6 million participants, along with 7.8 million IRA accounts and 10,677 tax-exempt plans covering 9 million participants [8]