A study has found that retirement looks bleak for many Americans as a result of the shift from traditional pension to 401(k) plans, but the Trump administration does not seem to be part of the solution, according to this opinion piece on The New York Times. For example, GOP lawmakers are moving to prevent states from running their own retirement programs for workers who have no access to 401(k) plans, the opinion says. Although President Trump does not intend to reduce Social Security benefits, "his actions so far do not inspire confidence that the needs of current and future retirees are particularly high on his agenda."
Gen Xers are advised to drop their lukewarm attitude about retirement saving and start getting their act together to avoid serious consequences in their golden years, according to this article on MarketWatch. They are advised to start saving as soon as they can and create a strategy to manage their savings and finances. They may also want to max out their 401(k) contributions, consider changing jobs for better pay and downsize to reduce costs and free up more money to add to their savings.
Prolonged low interest rates don't do retirement savers any good, says Larry Fink, chairman and CEO of BlackRock, according to this story from CNBC. "Retirement and the fear of retirement is the greatest problem we have in this country," says Fink. "As people near retirement, they're getting more frightened [when they think], 'I don't have enough savings.' And the compounding effect with this low return is really having a severe impact."
Clients can expect their financial abilities to decline as they age, and the result could be costly, according to this article on Kiplinger. To avoid this, clients are advised to organize and simplify their finances, and to ask a trusted family member, friend or professional to help them manage their money. It also pays to plan ahead and watch out for warning signs, such as having difficulty reading their bank statement or doing simple mental math.
Clients should not rely on Social Security for income in retirement as their benefits won't be enough to cover their needs through the golden years, according to this article on Forbes. They are advised to start planning to secure their retirement. They may want to delay retirement and continue working until the age of 70 or consider pursuing a new career path after they retire.
