The government wants to make it easier for workers to convert part of their 401(k) savings into an annuity that would pay guaranteed income checks for life — no matter the ups and downs in the markets.
"Delaying retirement leaves a worker with fewer years of retirement to finance, more time to save and earn returns, and higher Social Security benefits," says one financial planner.
Figuring out how much you'll need to retire — or how much you can expect to earn on your retirement dollars — isn't as simple as plugging numbers into an online calculator.
New 401K options and greater transparency over fees are designed to give workers and retirees more control over their retirement savings, with CNBC's Sharon Epperson.
The change partly reflects demographics but also government cost-cutting that has resulted in less generous pay and benefits, the New York Times reports.
Ameriprise Financial examined where consumers are most confident about retirement. Many expressed a nagging sense that they hadn’t saved enough money to keep them afloat. They’re right to worry, but they still have time for corrections.
Withdrawing money from a retirement account can carry a high price. Besides jeopardizing long-term savings, withdrawals can incur a 10 percent penalty. Still, if you’re in a financial pinch there are some options for cracking your nest egg that are better than others.
“Flexible savings accounts are today what the 401(k) match was 10 or 15 years ago, where people didn’t grasp that this free opportunity was sitting there,” says one financial expert.
Why risk your retirement investing in what others claim to know? Technically all retirement plans can be self-directed, but unfortunately the majority of plans are limited to the assets sold by the plan provider.