Seniors will face a 20% penalty on top of income taxes if they withdraw funds from a health savings account for non-medical expenses before the age of 65, according to this article on Kiplinger. The penalty disappears once seniors take the non-medical withdrawals after that age, but the distributions will still be subject to income tax. Moreover, “you can use HSA money tax-free for several extra expenses, such as paying your monthly premiums for Medicare Part B and Part D and Medicare Advantage plans,” according to the article.
Although amassing considerable savings is essential to securing retirement, a study by Merrill Lynch and Age Wave has found that for most retirees, having a supportive and loving family and friends is what makes a rewarding retirement, according to this opinion article on MarketWatch. “It’s who we were as people, who we loved and who loved us, and how we made an impact on the lives of others,” says an expert with Age Wave. “A well-prepared legacy allows us to leave families with a clear road map of our preferences and powerfully communicate the values, memories, and life lessons we want to leave behind.”
Clients who consider buying an annuity should look beyond the benefit of guaranteed income in retirement before making a decision, writes an expert on The Wall Street Journal. That’s because an annuity also carries a number of risks, the expert explains. For example, “an annuity purchased from an insurance company that fails can leave you completely exposed, and judging the strength of a financial institution decades down the line is difficult even for professionals.”
Data from the Employee Benefit Research Institute show that the retirement savings shortfalls of households headed by people aged 35 to 64 shrank to $3.83 trillion from $4.44 trillion recorded in 2014, according to this article on CNBC. “There’s a significant share of the population that is definitely going to be in trouble for retirement,” says an expert with EBRI. “But those people who are lucky enough to work for employers who sponsor retirement plans are on track to do very well.”
