Posts Tagged ‘retirement’

New Jersey Ranks Worst in Nation for Finances

Posted on September 25, 2017 by Laura Lam

New Jersey is nearly $209 billion in debt and has the worst finances of any state in the nation, according to a recent report.  Truth in Accounting, a think tank that analyzes government finances, ranked all 50 states based on their debt per taxpayer. The group’s latest report said New Jersey taxpayers carry $67,200 each in debt, a burden has almost doubled since 2013, when it was $36,000 per taxpayer. New Jersey’s massive debt load largely stems from pension and retiree health care costs for state workers. The report said the state has $118.8 billion in unfunded pension benefits and…

73% of Americans Have Financial Regrets

Posted on June 06, 2017 by Laura Lam

Nearly 3-in-4 U.S. adults have financial regrets, according to a new report. The most common is not saving for retirement early enough, followed by not saving enough for emergency expenses and taking on too much credit card debt. Taking on too much student loan debt is fourth, however, it tops the list among older millennials (27-36 year-olds). Fifth overall is not saving enough for your children’s education and sixth is buying more house than you could afford. Baby Boomers are the most likely to regret not saving for retirement earlier; remorse over this issue grows steadily from age 18-62. It’s…

Millennials’ Financial Habits Differ from Previous Generations

Posted on May 12, 2017 by Laura Lam

More so than Gen X and baby boomers, millennials prioritize issues like buying a home, purchasing cars, saving for and planning vacations and weddings and college planning, according to a recent Stash survey.  Yet these are not issues that most financial advisers typically bring up with clients.  “We have a retirement, baby-boomer-centric service model that tends not to interest millennials,” said Alan Moore, co-founder of the XY Planning Network.  “Advisers need to look at where younger investors are in their lives and help them with those issues, such as navigating debt.” The financial habits of millennials,a giant generation of 92 million people…

Average Retirement Savings is Inadequate

Posted on April 14, 2017 by Laura Lam

Most American families, even those close to retirement, have little or no retirement savings.  Not surprisingly, younger families have less stashed away. According to a report from the Economic Policy Institute (EPI), the mean retirement savings of a family between 32 and 37 years old is $31,644. But that number doesn’t tell the whole story. Since so many families have zero savings and since super-savers can pull up the average, the median savings, or those at the 50th percentile, may be a better gauge. The median for families between 32 and 37 is a scant $480. How big should your nest egg be in your 30s?…

Retirees Will Influence Future Consumer Spending

Posted on March 15, 2017 by Laura Lam

Major demographic shifts over the next decade will have a dramatic affect on U.S. consumer spending – which in turn will influence the overall economy, specific industry sectors and individual stocks, according to a new report.  Population growth will be uneven, favoring the South and West as retirees migrate to the Sunbelt in search of warm climates and lower taxes.  This shift in population could affect public sector spending and municipal bond markets. The Conference Board report, “The Impact of Demographic Trends on Consumer Spending,” examines the size and age distribution of the future population, how spending patterns will change…

Seniors Prefer Non-Digital Communication from Banks

Posted on September 28, 2016 by Laura Lam

According to the Pew Research Center, 4 in 10 U.S. adults over the age of 65 don’t use the internet at all.  Some older customers may simply prefer not to divulge their email addresses because they don’t intend to conduct bank transactions online or because they are afraid of a security breach. Indeed, when PeopleMetrics asked consumers of all ages what topics they want to know more about, the only major issue popping up for seniors was how to protect their online identities. Regardless of why, an inability to communicate with customers digitally is compounded by a broad decline in lobby traffic….

Housing Debt is a Growing Concern for Retirees

Posted on September 27, 2016 by Laura Lam

Americans are carrying higher levels of debt as they head into retirement, raising the specter of financial headaches in their old age, according to a new report from Prudential Financial. Much of that debt Americans are taking with them into retirement is housing debt, Prudential noted in a white paper based on data from the Center for Retirement Research at Boston College. Citing Federal Reserve data, Prudential reported that median-home values for those aged 65 to 74 rose 76%, while housing debt skyrocketed 393%. This trend is the byproduct of low interest rates and high access to home equity lines…

The Richest Generation Keeps Getting Richer

Posted on August 31, 2016 by Laura Lam

Baby boomers started turning 65 in 2011, marking the unofficial beginning of their retirement years. The timing could not have been better for older boomers, who are already part of the wealthiest generation in U.S. history. Since then, the broad S&P 500-stock index is up 91%. Market performance in the early years of retirement is a crucial worry for anyone living off a nest egg. In the worst-case scenario, stocks crash just as retirees start spending their savings, leaving them in a hole they can no longer earn their way out of.  But older boomers have experienced what is arguably the best-case…

No Rest for the Weary: More Americans Working Past 65

Posted on June 03, 2016 by Laura Lam

Almost 20% of Americans 65 and older are now working, according to the latest data from the U.S. Bureau of Labor Statistics. That’s the highest number of older people with a job since the early 1960s.  When asked to describe their plans for retirement, 27% said they will “keep working as long as possible,” a 2015 Federal Reserve study found. Another 12% said they don’t plan to retire at all.  Why are more people putting off retirement?  A recent Bloomberg article reveals 5 possible reasons. They need the money.  3 in 5 retirees surveyed by the Transamerica Center for Retirement Studies said making money…

Banks Neglect Seniors in Digital Push

Posted on May 20, 2016 by Laura Lam

According to a 2016 mobile banking study from the Federal Reserve, only 18% of seniors use mobile banking services, versus a whopping 67% of millennials.  Seniors have been laggards in shifting to mobile banking. But banks’ inability as an industry to design websites and apps that respond to the seniors’ needs contributes to the lack of use.  Despite research from Nielsen Norman Group on seniors’ challenges in using the web, developers are still not adequately taking into account older customers’ challenges in when designing digital interfaces. Not only are these customers generally less versed in the mobile environment, but designers…