Core Insights - Generation Z is significantly increasing their contributions to tax-advantaged Roth accounts, with 95% of their contributions going into Roth options, surpassing previous generations like millennials at 75% and Generation X at 66% [1] Group 1: Factors Driving Adoption - A combination of increased financial education, easier access to investment platforms, and historically low tax rates is encouraging young investors to choose Roth accounts [2] - Financial education is more accessible than ever, with resources available on smartphones, leading to a greater awareness and adoption of Roth accounts among Gen Z and younger millennials [3] - Fintech platforms such as Robinhood and SoFi facilitate quick and easy access to Roth accounts, often providing incentives like matching contributions [3] Group 2: Impact of Automatic Enrollment Programs - Some research indicates that state-run automatic-enrollment IRA programs may contribute to the adoption of Roth IRAs, although the primary surge appears to be from higher-income households rather than lower-wage workers targeted by these programs [4] - The trend seems to be more influenced by fintech developments than by state auto-IRA initiatives [5] Group 3: Timing for Contributions - Advisors suggest that it is an advantageous time for young investors to contribute to post-tax retirement accounts like Roth IRAs, especially in light of potential future tax increases due to national debt concerns [6] - There is a growing expectation among savers of rising tax rates in the future, making current Roth contributions a strategic move to mitigate future financial impacts [7]

If you’re even casually thinking about your retirement plans, you’ve probably been bombarded with a common piece of advice: Wait until age 70 to claim your Social Security benefits. On paper, it sounds like a good idea since you’ll receive the highest possible monthly benefit. However, the best-laid plans that seem terrific on paper can sometimes fall flat in real life — depending on your circumstances. And delaying your Social Security benefits is no exception. For You: Here’s How Much You Need To Retire ...

Core Insights - A significant portion of retirees struggle to save enough for retirement, with 20% of Americans over 50 lacking retirement savings and over half concerned about their financial security during retirement [2] Group 1: Retirement Planning - Having a structured retirement plan is crucial, as many individuals, like Frank, initially lacked a clear strategy for their savings [4] - Understanding the amount needed for retirement can guide individuals in determining how much to save monthly [5] Group 2: Retirement Accounts - The introduction of Roth accounts has provided new opportunities for tax-efficient savings, which many, including Frank, wish they had utilized earlier [6] - Traditional retirement accounts, while beneficial for tax deductions during contributions, require careful planning due to tax implications upon withdrawal [6]