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Tapping Your Retirement Account for Other Financial Needs Can Have Costly Consequences According to a December 13, 2022, article in The New York Times, hardship withdrawals from workplace retirement accounts are rising — “another sign, along with rising credit card debt, that many Americans have been feeling financial pain from inflation.” At some point, most people find themselves in a situation where they need access to cash quickly. If that happens to you, you may think about taking money out of your retirement plan account through either a loan or distribution. While those are both...

Consider working with a financial professional to help improve your financial health A financial professional can help you not only make key financial decisions, but also identify your priorities and guide you toward achieving your financial goals — including retirement. Here are three reasons why seeking professional advice about your financial future may be a smart move. Objectivity Sometimes your emotional biases can make it difficult to look at your own financial situation with clear eyes. A common example: people may know they need to save for retirement, but they often have difficulty...

Summary of Key retirement and Tax Provisions On December 29, 2022, the Consolidated Appropriations Act of 2023 was signed into law. The Act, referred to as SECURE 2.0, includes important provisions affecting retirement savings plans. These provisions offer many new benefits to employers and employees which are designed to make it more attractive for employers to offer retirement plans and to improve retirement outcomes for employees. Below is a summary of selected provisions with potentially broad effects. Employers may need to consult with appropriate legal counsel and other professionals to...

Study reveals plan participants are on a positive trajectory, aided by auto features Being able to replace working income with income generated from retirement savings is the essential definition of retirement readiness. The percentage of working income that an individual may need in retirement will vary, depending on a number of factors, such as whether or not they will still have a mortgage, the amount of their Social Security benefit, their tax bracket, variable healthcare costs, lifestyle choices and having income from part-time work, among others. When projecting retirement income needs...

Dealing with inflation’s negative effect on employee retirement planning An August 2022 survey from Nationwide Retirement Institute found that 40% of workers age 45 and older plan to delay their retirement due to inflation and rising living costs. That figure is double the percentage of workers who said they delayed retirement last year due to the COVID-19 pandemic. While the current inflationary environment presents a host of retirement plan challenges for both employers and employees, tackling the trend with prudent and sensible solutions remains the best course of action. Inherent Costs to...