retirement news
Automatic enrollment of employees in a 401(k) plan is likely to get more workers to save something for retirement. But it might not boost retirement savings overall, suggests a new Center for Retirement Research at Boston College study. An increase in 401(k) participation means employers that provide a 401(k) match will have to spend more money on employee benefits. Firms that can’t or don’t want to increase compensation may take a scalpel to the 401(k) match.
Buy a house, pay the monthly mortgage, watch your home's value grow, and eventually sell it and fund your retirement dreams. It seemed to be the natural order of things until the bubble burst. For older homeowners, the new order of things is to either sell your home at a huge loss or stay put and hope things will get better before you're too old and frail to have any retirement dreams left. For recent homeowners, there is no dream. But there is a nightmare: Buy a house at an inflated value, pay a teaser mortgage until you can't afford it, watch your home's value fall like a rock, and then sink with that rock as you either default, renegotiate your loan, or sink further underwater each month. Renting never looked so good.
For workers without a traditional pension, retirement is a do-it-yourself affair. But the majority of Americans have not done any retirement planning, according to research released today. Only 42 percent of working Americans have ever tried to figure out how much they need to save for retirement, the survey conducted by the Treasury Department, President’s Advisory Council on Financial Literacy, and the FINRA Investor Education Foundation found. Even among those closest to retirement, just 51 percent of Americans between the ages of 45 and 59 have attempted to calculate how much they must accumulate.
