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America's retirement 'magic number' just hit another record

America's retirement 'magic number' just hit another record

Most people have a retirement number in their head. A new record shows how fast that number keeps moving.
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IRS Notifies Taxpayers About New Saver's Match Retirement Benefit

IRS Notifies Taxpayers About New Saver's Match Retirement Benefit

The IRS has begun sending notices to taxpayers who may be eligible for the new Saver's Match program, a retirement benefit authorized by the 2022 Secure 2.0 retirement legislation. This program, set to debut in the 2027 tax year, will provide income-eligible retirement savers with a matching annual contribution of up to $1,000 for single filers and $2,000 for joint filers. The IRS sent CP321J notices to individuals who claimed the previous saver's credit on their 2025 tax return or whose 2025 income fell within the eligibility range. The benefit applies to savings in workplace plans like 401(k)s or individual retirement accounts. Taxpayers will claim the Saver's Match using a new Form 8880-A when filing their 2027 tax return in 2028. This initiative aims to replace the existing saver's credit, which was a nonrefundable tax credit that could only reduce a tax bill to zero, offering minimal benefit to low-income households with little to no tax liability.
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Study Reveals Majority of U.S. Workers Expect to Restrict Spending in Retirement

Study Reveals Majority of U.S. Workers Expect to Restrict Spending in Retirement

Study Reveals Majority of U.S. Workers Expect to Restrict Spending in Retirement
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U.S. Retirement System Reforms Proposed by Pension Research Council and Brookings Institute

U.S. Retirement System Reforms Proposed by Pension Research Council and Brookings Institute

The Pension Research Council (PRC) and the Brookings Institute are co-hosting a livestreamed event titled 'The Next Generation of Reforms to the Retirement Saving System.' This event, scheduled for Wednesday, September 30th, from 9:45 AM to 11:35 AM (ET), will feature discussions on evidence-based proposals for SECURE 3.0. PRC Executive Director Olivia S. Mitchell is among the panelists who will be presenting these proposals, which represent a potential new wave of U.S. retirement policy reforms. The initiative aims to address current challenges and improve the long-term sustainability and effectiveness of the retirement saving system in the United States.
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Early Retirement Requires Distinct Planning Considerations Beyond Traditional Advice

Early Retirement Requires Distinct Planning Considerations Beyond Traditional Advice

Early Retirement Requires Distinct Planning Considerations Beyond Traditional Advice
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Retirees Face Psychological Barrier to Spending Savings Despite Financial Security

Retirees Face Psychological Barrier to Spending Savings Despite Financial Security

Retirees Face Psychological Barrier to Spending Savings Despite Financial Security
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Dave Ramsey has blunt warning on 401(k)s, IRAs

Dave Ramsey has blunt warning on 401(k)s, IRAs

The bestselling personal finance author cautions Americans about a serious retirement savings mistake to avoid.
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Comprehensive Retirement Planning Emphasizes Early Saving and Holistic Approach

Comprehensive Retirement Planning Emphasizes Early Saving and Holistic Approach

Effective retirement planning extends beyond mere financial savings, encompassing a holistic approach to ensure a comfortable and fulfilling post-work life. Key elements include setting clear goals, understanding various income sources like pensions and Social Security, and estimating future expenses such as daily costs, healthcare, and leisure activities. The process also involves strategic saving and investing, with a strong recommendation to start early and utilize employer-sponsored accounts like 401(k)s, especially when matching contributions are available. Additionally, exploring other investment vehicles like IRAs or Roth IRAs is crucial for diversified growth. Healthcare planning is a significant component, requiring an understanding of Medicare coverage and considering supplemental plans to mitigate unexpected medical costs. Social connections and continuous personal growth through education or hobbies are also highlighted as vital for well-being in retirement. The CrossState Credit Union Associat...
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Consumer Behavior Shifts Towards 'Constraint' and 'Upgrade' Spending Amidst Persistent Volatility

Consumer Behavior Shifts Towards 'Constraint' and 'Upgrade' Spending Amidst Persistent Volatility

Consumer Behavior Shifts Towards 'Constraint' and 'Upgrade' Spending Amidst Persistent Volatility
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Brookings Institution Proposes SECURE 3.0 Reforms to Enhance U.S. Retirement Savings System

Brookings Institution Proposes SECURE 3.0 Reforms to Enhance U.S. Retirement Savings System

The Brookings Institution has put forth proposals for 'SECURE 3.0,' aiming to address persistent gaps in the U.S. retirement saving system. Building on the SECURE Act and SECURE 2.0, which expanded retirement plan coverage and encouraged automatic saving, these new recommendations focus on improving the targeting of tax subsidies, broadening access to workplace retirement plans, and promoting lifetime income options. The institution highlights that despite previous reforms, millions of workers still lack easy ways to save for retirement, and employers are hesitant to offer lifetime income solutions. The proposals seek to restore lifetime income to retirement plans by establishing partial annuitization as an automatic payout default in defined contribution plans, thereby allowing employers to offer this option without additional fiduciary risk. This initiative aims to provide retirees with low-cost protection against longevity risk and simplify complex financial decisions, effectively reintroducing a form o...
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Social Security's biggest check locks out most retirees

Social Security's biggest check locks out most retirees

A single income threshold separates most retirees from the program's highest benefit.
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Parents Increasingly Rely on Baby Boomer Relatives for Financial and Childcare Support Amid Affordability Crisis

Parents Increasingly Rely on Baby Boomer Relatives for Financial and Childcare Support Amid Affordability Crisis

Nearly two in five parents with young children, specifically 37%, anticipate receiving financial assistance from their parents or grandparents in the coming year, according to the BMO Real Financial Progress Index. This reliance on older generations, often referred to as the 'Bank of Baby Boomers,' is a direct response to the escalating costs of raising children in the U.S. The report indicates that 82% of American parents believe the cost of raising children has become 'out of control,' with 86% struggling with everyday expenses like daycare, after-school programs, and school supplies. Beyond financial aid, 43% of parents depend on grandparents for childcare, and 26% expect family members to contribute to their children's future savings, such as 529 plans. This trend signifies a shift where younger families are actively seeking support from older relatives rather than solely waiting for a 'Great Wealth Transfer.'