Blog

Key Takeaways

• Most workers older than 40 are not participating in retirement plans
• The COVID-19 pandemic has halted retirement planning for many Americans
• Defined Benefit and Cash Balance plans can accelerate retirement savings and maximize tax savings by allowing larger contributions for small business owners

The responsibility of saving for retirement is largely up to the individual and unfortunately, many Americans haven’t saved enough money for retirement: most workers older than 40 are not participating in any retirement plans. The COVID-19 pandemic also has deterred retirement savings for Americans, forcing many to stop contributing to retirement accounts. If you’re self-employed or a small business owner who has postponed saving for retirement, there are strategies to catch up. Defined Benefit plans and Cash Balance plans can accelerate retirement savings and maximize tax savings by allowing larger contributions. Plus, these pension plans can provide greater employer tax deductions or tax deferrals compared with other retirement plans such as a 401(k) or SEP IRA. Here’s a roundup of the top stories on how you can get back on track with your retirement savings.

Workers Over 40 Aren’t Saving Enough for Retirement: Insured Retirement Institute

Most workers older than 40 have inadequate retirement savings and are not saving enough to catch up. However, most Americans expect retirement income far greater than even the highest Social Security benefits, according to a study from the Insured Retirement Institute. To help address this issue, Congress is considering new retirement security legislation that would increase a tax credit for small-business owners to encourage them to offer their employees a retirement plan.

Via Think Advisor

If you want to save for retirement but don’t know where to start, calculating your net worth can be a useful tool. It might help you evaluate your current situation, set goals and budget for retirement. Here’s how you can calculate your net worth and learn some tips to determine your retirement needs.

Via Money

Related Articles

Why More Women Will Have a Retirement Savings Shortfall During the Pandemic

Should You Delay Your Retirement During the Health Crisis?

Four Retirement Plan Solutions for the Self-Employed

Confused About Retirement Savings Plans? Here’s How to Choose the Right One for You

More than half of U.S. workers between the ages of 40 and 73 have less than $50,000 set aside for their retirement, according to a survey from the Insured Retirement Institute. Nearly 6 in 10 save less than 10% of their income. Here are factors to consider when figuring out the best option for your retirement savings plan.

Via CNBC

How Much You Should Have in Your Retirement Fund at Ages 30, 40, 50 and 60

How much a person should have in their retirement fund depends on the type of lifestyle you want to lead in the future. Setting goals and milestones to reach at ages 30, 40, 50 and 60 will help you have money to live when you no longer bring in regular income. Here are some guidelines.

Via Go Banking Rates

Do You Really Need to Save That Much for Retirement?

Guidelines for how much money you need saved for retirement can be appealing because of their simplicity, but also daunting for investors who may find themselves behind. Here are some retirement saving estimates and a look why these estimates may not be an accurate benchmark for every investor.

Via Morningstar

Americans Are Behind on Saving for Retirement. Here’s How to Get on Track

Most adults don’t have sufficient retirement savings and aren’t putting enough aside to catch up, according to a survey. The COVID-19 pandemic has exacerbated the issue. One-third of Americans who planned to retire say it will now happen later because of COVID and about 14 million stopped contributing to their retirement accounts. Here are some tips to get your retirement back on track.

Via CNBC