Thrift savings plan participants are suing over access to funds

Editor’s note: This story was updated at 12:26 PM EST on Friday, June 2 to include updated comments. Military and civilian users of the Federal Government Savings Plan, the popular tax-deferred retirement savings program for millions of government employees, have applied lawsuit Claiming that they lost access to their funds after updating their system. The … Read more

Retirees shouldn’t take drastic steps because of the debt ceiling deadline

As the US nears its debt ceiling deadline, Dave Boniface has been fielding calls and emails from older clients. “The concern is escalating very quickly,” says Boniface, a financial advisor at Legacy Capital, a subsidiary of LPL Financial, in Forest Lake, Minnesota. Retirees worry about how the economy will fare if lawmakers can’t reach an … Read more

Dental insurance for retirees is not a big deal. Consider self-insurance.

Christina Povenmire is semi-retiring from her financial planning practice and is going into Medicare. She’s buying a supplemental plan that will pay nearly all of the costs that Medicare doesn’t. But she wouldn’t buy any insurance to cover the dental costs. “The cost of dental insurance premiums is not worth the benefit,” she said. Her … Read more

Why this 63-year-old isn’t counting on any one source of income to see him through retirement. Plus, why all the fuss about mandatory RRIF withdrawals?

Open this image in the gallery: Mickey McCarthy with an RV-9A van in Villeneuve, Alta.Amber Bracken / For The Globe and Mail Content from The Globe’s weekly retirement newsletter. Register here “I semi-retired at 55 after hiring a manager to run my carrier, and then fully retired at 57 after winding up,” says Mickey McCarthy, … Read more

Less than 60 percent of Baby Boomers own retirement accounts

Millions of working-age Americans ages 56 to 64 are approaching retirement without stash savings. census data for 2020 shows that fewer than 60 percent (about 58.1 percent) of American “baby boomers” — generally defined as born between 1946 and 1964 — have owned a retirement account three years ago, at a time when the COVID-19 … Read more

The inverse 4% rule puts retirement income and spending in perspective

You may have heard of the “4% rule” for making withdrawals from your retirement account but how about trying the “reverse 4% rule?” Turning this investment guidance on its head could give retirees a new way to think about their money in retirement. Instead of multiplying your total nest egg by 4%, divide your withdrawals … Read more

What happens to Social Security payments if no debt limit is reached?

Failure to reach an agreement on the debt-ceiling crisis would send the US into perilous territory and could mess up the Social Security payments of nearly 70 million recipients. US Treasury Secretary Janet Yellen said on Monday that the US government may exhaust its ability to pay its bills as early as June 1 if … Read more

How to retire when basically nothing is saved

There is a lot of magical thinking surrounding retirement. The rule of thumb is to aim for about 80% of your current income for your retirement, and during it The figure is a little sketchyHelpfully, it highlights just how expensive retirement can be. When you’re young, you think retirement is very far away You don’t … Read more

Why is everyone so concerned about retirement? It feels like 2008 again.

In April 2022, when I looked through the 2022 Annual Employee Benefits Research Institute Favorite Retirement confidence surveyFor most working and retired Americans, the prospect of retirement felt like having a good time on a picnic but starting to see storm clouds on the horizon. Now, the 2023 poll is out. The storm has arrived. … Read more