Americans are more confident in their savings for the first time in six years
A survey by Bankrate has found that more Americans are becoming more optimistic about their retirement savings, according to this article on MarketWatch. This is the first time after six years of conducting the annual survey that more people voiced confidence about their retirement prospects. “The stock market has been on quite a tear,” which would explain the rising optimism among retirement savers, says a financial analyst with Bankrate. “That account balance looks a lot better, and that could be contributing to that comfort people have with what they’ve accumulated.”

Image: Bloomberg
Image: Bloomberg

The mistake that will upend your retirement security
Investors having big balances in their retirement accounts should not be overly optimistic about their prospects, according to this article on CNBC. That's because their investment returns could be less than what they expect. "The biggest problem investors have is an 'expectations gap,' between the returns that they hope to earn, and the plausible returns on today's low-yielding markets," says an industry analyst.

Why you shouldn't stick with your 401(k) plan's default settings
Clients who are contributing to a workplace retirement plan like a 401(k) should review the plan's default savings rate and investment, according to this article from U.S. News & World Report. That's because the savings rate could be lower than what they need to save and would not be enough to earn their employer's matching contributions. A low savings rate could also mean missing out on the opportunity to claim a bigger tax deduction on contributions, while the plan's default investment (usually a target-date fund) might not allow them to realize their retirement savings goals.

When it’s smart to take Social Security benefits at 62
Collecting Social Security benefits as early as age 62 is not always a bad move, as this could give seniors the autonomy that adds up to their fulfilment in retirement, according to this article on personal finance website Motley Fool. While the monthly benefits are reduced if they are claimed early, retirees would need a much smaller income than what they were told to have to live by. Retirees who file early can also enjoy their benefits while they still can and extend the most enjoyable phase of their retirement.

Two in five Americans say they’ll need $1 million to retire
Thirty-seven percent of workers polled by the Employee Benefit Research Institute said that they would need $1 million to secure their retirement, according to this article from Bloomberg. The number increased from 19% of respondents who had the same view in a similar survey conducted 10 years ago. The recent survey also found that 50% of the respondents with at least $75,000 in household income said that they should save $1 million to prepare for their golden years, while only 17% of households with income below $35,000 share the same amount to retire.

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