Are your employees doing everything they need to do to prepare their finances for retirement? With possible changes coming for social security benefits and other recent shifts in the ways — and amounts — Americans need to save for retirement, the answer may be no.
No matter how old your employees are now, that day will eventually come and you’ll want them to feel secure in their preparations. This week’s 5 for Friday focuses on information on social security benefits and retirement savings strategies.
- How Should We Value Our Future Social Security Benefits? Yahoo News: “Here’s a critical question confronting the 10,000 baby boomers retiring daily, each of whom must decide when to take Social Security. How much are my future Social Security benefits really worth? The answer matters. If we place very little value on future benefits, we’re going to take our benefits as soon as possible. But doing so comes at a price – a permanently reduced level of benefits. The reduction is substantial.”
- Retirement Recovery After Tapping That Nest Egg Early. The Huffington Post: “In August, employees are most likely to take early withdrawals and loans from their defined contribution plans according to the ING U.S. Retirement In Review customer study. There are many reasons why you might need to tap your retirement savings during your working years — college funding (which could explain the August uptick), a health emergency, job loss, unexpected bills — even though you know this strategy is not an ideal solution to financial troubles.”
- Hutchinson Financial Discusses Why Not to Take Social Security before Normal Retirement Age. PRWeb: “Many working adults dream of retiring early, collecting Social Security retirement payments, and relaxing on a beach somewhere, especially now, at the height of America’s vacation season. However, collecting Social Security benefits before the normal retirement age might not be the best choice for most people who retire early, according to Eric Hutchinson, President of Hutchinson Financial, Inc.”
- Small-Business Owners Neglect Retirement Savings. CNBC: “For many small-business owners, the golden years aren’t looking so shiny. Many have devoted so much time and money to their businesses that they have failed to plan for retirement. Catch-up plans for these owners usually consist of aggressively putting money aside, or taking another big risk: Planning to sell their companies one day to fund their retirement.
- Which Are Better, 401(k)s or Pensions? MarketWatch: “ Most people bemoan the loss of the traditional pension plan, and they cite its disappearance—and the rise of the save-it-yourself 401(k)—as key factors in the retirement crisis facing American workers. But new research suggests the new kid on the block is not to blame. In fact, workers with 401(k)s in some cases are likelier to end up with more money at retirement than they would with a traditional private-sector pension plan, according to a study by the Employee Benefit Research Institute, a nonpartisan think tank in Washington.”