All articles tagged with #retirement savings
Elon Musk claims AI, energy, and robotics will create such abundance that retirement savings won’t matter, but seven personal-finance and AI experts say Americans should still save for retirement. They warn about Social Security funding shortfalls, uneven productivity gains, and ongoing cost‑of‑living pressures, arguing that relying on future abundance is risky and that individual saving remains essential.
The Thrift Savings Plan's 2025 funds had mixed results in 2025, with most funds ending the year in positive territory, though overall returns were modest, and only one fund exceeded 1% growth in December.
Soft saving is a mindful approach where individuals prioritize current enjoyment over aggressive retirement savings, which can serve as an entry point to consistent saving but may pose challenges for long-term financial goals if not balanced properly. Experts suggest maintaining some level of investing for the future while allowing room for present-day pleasures, emphasizing automation and gradual increases in savings over time.
Contributing the IRS limit of $7,500 annually to an IRA from age 27 to 67 could grow to about $1.38 million with an S&P 500 index fund, or around $882,000 with a more conservative 60/40 stocks and bonds portfolio, highlighting the impact of investment choices on retirement savings.
Gen Z is starting retirement savings earlier than previous generations, with many opening accounts by age 19, driven by financial anxiety and economic challenges, though some are already dipping into their savings early. While their engagement is promising, concerns about financial stability remain prevalent.
Americans aged 55-64 have an average of $8,000 in savings, with many holding significant assets in retirement accounts and other investments. While their savings are growing with age, experts advise increasing contributions and strategic investments to ensure long-term retirement readiness, especially as retirement can last over 30 years.
OregonSaves, a state-run retirement savings program with $430 million in assets, has successfully enrolled 180,000 residents, but many are withdrawing funds early, leading to an average account balance of only $3,000. Despite its growth and success in encouraging saving, the frequent withdrawals, often for emergencies, hinder long-term retirement preparedness, highlighting the challenges of encouraging consistent savings.
A new study finds that 90% of Americans plan to claim Social Security benefits before age 70, despite expert advice to delay for higher payments, due to concerns about financial stability and lack of retirement savings, amid ongoing debates about the program's future.
More Americans are living paycheck to paycheck, with projections indicating this trend will worsen, leading to decreased retirement savings due to rising costs like housing and education, and major life events disrupting savings plans. Experts advise engaging in personalized retirement planning to improve financial security.
A Goldman Sachs study reveals that more Americans are living paycheck to paycheck, with 42% of younger workers having no savings after expenses, making retirement savings increasingly difficult due to rising costs of essentials like housing and healthcare. The shift from pensions to 401(k)s has placed more responsibility on individuals, many of whom feel unprepared for retirement, highlighting the need for new strategies and policy changes to address the growing financial insecurity.
Many Generation X individuals face financial challenges for retirement, with low savings, lack of confidence, and a shift away from pensions towards 401(k)s, which have historically been less robust, leading to concerns about outliving savings and postponing retirement.
Starting January 1, 2026, workers over 50 earning more than $145,000 must make catch-up retirement contributions using Roth (after-tax) dollars due to new IRS rules, impacting both employees' savings strategies and employers' plan administration.,
A survey highlights Americans' ideal ages for reaching key financial milestones, such as starting to save for retirement at 27, landing a dream job at 29, earning six figures by 35, buying a first home at 30, becoming debt-free at 41, and retiring at 58, though many of these goals are increasingly challenging or delayed due to economic factors and changing circumstances.
The Trump administration's executive order aims to allow private equity and other private-market assets in 401(k) plans, opening a $12 trillion market for retirement savings. While this presents opportunities for private-equity firms and diversification for investors, concerns about high fees, performance variability, liquidity, and regulatory safeguards remain. The implementation process will take time, and the impact on retirement returns and investor protection is still uncertain.
The Trump administration signed an executive order to make it easier for 401(k) retirement plans to include private-market assets like private equity, potentially opening a significant new market for private-equity firms and offering retirement savers access to diversified investments, though concerns about fees and risks remain.