© 2019 SourceMedia. All rights reserved.

Most people (of all ages) failed this retirement quiz

Most people (of all ages) failed this retirement quiz
Clients should know the basic details of their retirement plans so they can make the most of their benefits and improve their prospects in the golden years, according to this article on MarketWatch. A survey by TD Ameritrade has found that only about 20% of Americans know the amount of contributions they can make to their 401(k) plan, with over 25% aware that non-working spouses can contribute to an IRA. Data from Employee Benefit Research Institute show that only about 18% of Americans were “very confident” about their retirement with nearly half saying they were “somewhat confident.”

401k-401(k)-retirement

Why a bucket approach can help when investing for retirement
A bucket approach is a good strategy for investors who want a better way of looking at their investments and managing retirement savings, writes an expert on The Wall Street Journal. “With buckets, there is still a conservative portfolio, the cash-based near-term bucket, but the other buckets become increasingly risky,” writes an expert. “Buckets, therefore, can be especially useful for very conservative retirees because most people need to take on some equity risk in their portfolios if they want to fund a retirement that will last 25-plus years.”

Should retirees expect more from their retirement plans?
Clients do not tend to dream big after seeing their nest egg, but even conservative seniors can pursue their ideal retirement if they use the right approach, writes this Forbes contributor. To do this, they should compare their newer goals with the old ones and refine their choices. They should then determine the potential challenges and personal expenses, identify income sources and assign budgets and timing to their goals and challenges. Finally, they should determine whether additional income sources will be needed and secure their retirement plan, closing the gaps between income and needs when necessary.

Are you a baby boomer looking for work?
As data from the Bureau of Labor Statistics and the Census Bureau show, the percentage of seniors in the labor force has grown over the last 20 years, according to this article on Forbes. This means that more older workers are deciding to delay their retirement to remain engaged or buy more time to boost their nest egg. Seniors who want to continue working have the option of doing consultancy or work on a part-time basis.

For reprint and licensing requests for this article, click here.