Individual retirement accounts

Advice about 401(k) rollovers is poised for a big change. Here’s why

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Johner Images | Johner Images Royalty-free | Getty Images A new U.S. Labor Department rule will significantly change the advice many investors receive about rolling money over from 401(k) plans to individual retirement accounts, legal experts say. The so-called “fiduciary” rule, issued April 23, aims to raise the legal bar for brokers, financial advisors, insurance … Read more

Americans think they need $1.46 million to retire. What experts say

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Aleksandarnakic | E+ | Getty Images When it comes to retirement, Americans have a new number in mind — $1.46 million — for how much they think they will need to live comfortably, according to new research from Northwestern Mutual. That estimate is up 53% since 2020, when Americans said they would need $951,000, as … Read more

Here’s who can claim a ‘special tax credit’ for retirement savings

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Halfpoint Images | Moment | Getty Images Some retirement savers can still snag an extra tax incentive for 2023. However, most eligible filers don’t claim it, according to the IRS. The retirement savings contribution credit, or “saver’s credit,” can help low- to moderate-income filers offset part of the funds added to an individual retirement account, … Read more

Policy changes look to reduce 401(k) plan ‘leakage’

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Sturti | E+ | Getty Images Leaks aren’t just a problem for pipes. Billions of dollars a year drip from the U.S. retirement system when investors cash out their 401(k) plan accounts, potentially crippling their odds of growing an adequate nest egg. The issue largely affects job switchers — especially those with small accounts — … Read more

Millennials’ retirement outlook may be worse than older generations

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JGI/Jamie Grill | Blend Images | Getty Images Millennials’ retirement prospects seem rockier than those of older generations of Americans. That’s largely a function of long-term policy changes such as a later age for full Social Security benefits and a shift to 401(k)-type plans, longer average lifespans and a bigger student debt burden relative to … Read more

Limiting retirement plan tax perks may help Social Security, experts say

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Wand_prapan | Istock | Getty Images There’s no debate that Social Security’s funds — which are projected to become insolvent in the next decade — need fixing. But a new research proposal published by the Center for Retirement Research at Boston College by experts at the opposite ends of the political spectrum has sparked considerable … Read more

Here’s the rate of return to expect on your retirement portfolio

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GlobalStock | Getty Images When you invest toward retirement, experts often like to say you are letting your money work for you. But how much can you realistically expect to earn on your money? The annual rate of return — defined as the percentage change in an investment’s value — is an estimate of the … Read more

4 factors affect how much Social Security retirees receive in 2024

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Adamkaz | E+ | Getty Images If you’re a retiree who relies on Social Security benefits for income, you will see some changes in 2024. You will get a benefit boost to adjust for inflation. But just how much extra money you see will depend on the size of your Medicare Part B premiums and … Read more

Early retirement is changing — here’s what to consider, according to the experts

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Ascentxmedia | Istock | Getty Images Retiring early is a dream for many, but can often appear impossible unless you’ve made millions throughout your career. “Twenty years ago rates of early retirement were fairly similar across different wealth levels,” Heidi Karjalainen, a research economist for retirement, saving and aging at the Institute for Fiscal Studies … Read more