401(k) Specialist Issue 1 - 2021 - 6
401(k) NEWS YOU CAN USE
Here's How Much the Average Retiree
Has Now (Hint: It's Not Enough)
ACCORDING TO A recent report, the average retiree has $177,787 in
retirement funds, which is just 39% of the report's stated " recommended
amount " of at least $465,000.
The report from real estate data company Clever, " The State of
Retirement Finances: 2021 Edition, " finds that despite expecting to
have expenses for 20 more years, two-thirds of retirees reported they
have less than $50,000 in retirement funds.
Sparse retirement funds leave many retirees heavily reliant on Social
Security income to cover their expenses. In fact, nearly 60% of
older adults' household wealth comes from Social Security, which
is less than ideal considering SSI is only about $1,514 per month
on average-much less than the typical spending of about $3,900
monthly.
Another key finding in the study is rising retiree debt. According
to the report, the average retiree now holds nearly $20,000 in
non-mortgage debt, with their debt more than doubling in 2020 due
in part to the ongoing COVID-19 pandemic.
Could the 401(k) Be a Social Security
'Bridge' to More Income?
WE ALL KNOW how much more retirees get in Social Security
benefits by waiting until age 70, but how do they get there?
The Center for Retirement Research at Boston College floated
the idea of using 401(k)s as a " Social Security bridge, " which
they argue is a way to further defer Social Security benefits to
a later age to thereby maximize the amount received.
" Introducing such an option as the default in 401(k) plans
would require no legislative or institutional changes and
would greatly enhance the welfare of participants, " according
to the issue brief.
Their proposal would introduce a default into 401(k) plans
that would " use 401(k) assets to pay retiring individuals ages
60-69 an amount equal to their Social Security PIA - the
monthly benefit at an individual's full retirement age. "
Replacing Social Security in early retirement years with
this type of temporary income stream would " break the link
between retiring and claiming. As a result, retirees could
delay claiming Social Security in order to maximize this valuable
source of annuity income. "
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401(k) Specialist Issue 1 - 2021
Table of Contents for the Digital Edition of 401(k) Specialist Issue 1 - 2021
Table of Contents
401(k) Specialist Issue 1 - 2021 - Cover1
401(k) Specialist Issue 1 - 2021 - Table of Contents
401(k) Specialist Issue 1 - 2021 - 1
401(k) Specialist Issue 1 - 2021 - 2
401(k) Specialist Issue 1 - 2021 - 3
401(k) Specialist Issue 1 - 2021 - 4
401(k) Specialist Issue 1 - 2021 - 5
401(k) Specialist Issue 1 - 2021 - 6
401(k) Specialist Issue 1 - 2021 - 7
401(k) Specialist Issue 1 - 2021 - 8
401(k) Specialist Issue 1 - 2021 - 9
401(k) Specialist Issue 1 - 2021 - 10
401(k) Specialist Issue 1 - 2021 - 11
401(k) Specialist Issue 1 - 2021 - 12
401(k) Specialist Issue 1 - 2021 - 13
401(k) Specialist Issue 1 - 2021 - 14
401(k) Specialist Issue 1 - 2021 - 15
401(k) Specialist Issue 1 - 2021 - 16
401(k) Specialist Issue 1 - 2021 - 17
401(k) Specialist Issue 1 - 2021 - 18
401(k) Specialist Issue 1 - 2021 - 19
401(k) Specialist Issue 1 - 2021 - 20
401(k) Specialist Issue 1 - 2021 - 21
401(k) Specialist Issue 1 - 2021 - 22
401(k) Specialist Issue 1 - 2021 - 23
401(k) Specialist Issue 1 - 2021 - 24
401(k) Specialist Issue 1 - 2021 - 25
401(k) Specialist Issue 1 - 2021 - 26
401(k) Specialist Issue 1 - 2021 - 27
401(k) Specialist Issue 1 - 2021 - 28
401(k) Specialist Issue 1 - 2021 - 29
401(k) Specialist Issue 1 - 2021 - 30
401(k) Specialist Issue 1 - 2021 - 31
401(k) Specialist Issue 1 - 2021 - 32
401(k) Specialist Issue 1 - 2021 - 33
401(k) Specialist Issue 1 - 2021 - 34
401(k) Specialist Issue 1 - 2021 - 35
401(k) Specialist Issue 1 - 2021 - 36
401(k) Specialist Issue 1 - 2021 - 37
401(k) Specialist Issue 1 - 2021 - 38
401(k) Specialist Issue 1 - 2021 - 39
401(k) Specialist Issue 1 - 2021 - 40
401(k) Specialist Issue 1 - 2021 - 41
401(k) Specialist Issue 1 - 2021 - 42
401(k) Specialist Issue 1 - 2021 - 43
401(k) Specialist Issue 1 - 2021 - 44
401(k) Specialist Issue 1 - 2021 - 45
401(k) Specialist Issue 1 - 2021 - 46
401(k) Specialist Issue 1 - 2021 - Cover3
401(k) Specialist Issue 1 - 2021 - Cover4
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