A survey by the Greenwald & Associates for the National Institute on Retirement Security has found that a majority of Americans back the federal rules encouraging states to create a state-run retirement savings program, according to this article on Bloomberg. Eighty-five percent of the respondents also felt that lawmakers don't understand the difficulty that they face when building a retirement nest egg, the survey found. “Americans are united in their anxiety about their economic security in retirement and in their dissatisfaction with national policy makers’ inaction to address the nation’s retirement crisis.”
A Vanguard study conducted in the U.S. and three other countries suggests that people should worry less about their retirement, according to this article on MarketWatch. The survey has found that more retirees than non-retirees in these countries were highly satisfied with their financial situations, with nearly 50% of the respondents claiming that they were not affected by the retirement crisis in their countries. This disconnect between pre-retirees and retirees is understandable, as “your financial life looks clearer and brighter when you retire,” says an expert with Vanguard.`
A state-sponsored retirement savings plan is an effective way to help millennials save for retirement, as these young workers tend to change jobs and move from one employer to another, according to this article on The New York Times website. Such a retirement program can also be a valuable help for small employers that find establishing their own retirement plan too costly and complicated. Maryland and other states intend to create their own retirement programs but there are efforts to thwart these state initiatives in the federal level.
A study has found that millennials are taking a more proactive approach to retirement saving compared with their elders, with a 401(k) plan as the common savings vehicle for this generation, according to this article on CNBC. More employers have also adopted automatic enrollment features for their 401(k) plans, prompting workers aged 25 to 34 to have stashed more than $10,500 in their accounts.
Annuities are known for offering guaranteed income in retirement, but there are other advantages that clients should know about these financial products, according to this article on Motley Fool. Annuities also offer tax-free growth on investment earnings and eliminate the risk of outliving their nest egg. Unlike other retirement plans, annuities impose no limits on annual contributions.
