Retirement planning is a complex issue and one that is drawing increased attention in recent years especially from the more than 77 million baby boomers approaching retirement age. One of the most challenging issues for many people is determining at what age they should commence collecting their Social Security benefits.
Employer retirement plans progress
The mid-Michigan area’s three largest employers have made changes to their retirement plans over the last several years to simplify, reduce risk and make choices easier for the participants. These changes reflect fewer custodians, fewer investment choices in their core offerings, several fund options with lower expenses, many target date or simple choices of providing a balanced asset allocation and several other improvements.
The proper way to plan for and live in retirement is changing. Individual investors are acutely aware of these changes, as the first question from many of my clients at the TIAA-CREF office in East Lansing is, “Am I on track for retirement?”
Participants in employer-sponsored retirement plans, such as 401(k) plans, often express they do not want the responsibility of constructing their own investment portfolios for their savings goals. The investment industry responded by offering two types of asset allocation funds to provide all-in-one solutions: target date funds and risk-based funds.
Could you end up paying higher taxes in retirement? Do you have a lot of money saved in a 401(k) or a traditional IRA? If so, you may be poised to receive significant retirement income.