Retirement

There is an interesting and worthwhile article in Financial Planning that discusses the post-financial crisis retirement landscape. The author draws a picture of a new set of retirement norms for Baby Boomers and the generation following Boomers. Issues addressed include: Longevity . The financial crisis' impact on retirement planning . Sequence of returns risk . Social Security . Use of annuities. Employment in retirement. Recreation in retirement. Source: Financial Planning Full Story

There is a very good article in Investment News about retirement planning and, more specifically, devising appropriate withdrawal and income strategies in retirement. The author discusses the nature of various income requirements and makes the entirely appropriate point that all income needs are not created equal. For example, travel desires obviously differ from essentials such as food and shelter. There are also different inflationary characteristics that need to be taken into account. Health...

AARP has published a tip sheet called Money Matters that offers advice on spending down one's assets in retirement. The tip sheet addresses a number of areas, including: When to claim Social Security . Asset Allocation . Annuities. Withdrawal rates. The role of one's home in retirement planning . For each topic, AARP offers a description of common or current practices, conventional wisdom and their general guidance. With respect to annuities, AARP notes that most people pay very little...

In a Bloomberg report scientists predict that half of the babies born today in rich or developed countries will live until age 100. Life expectancy has increased by 30 years over the past century in the same developed countries, and researchers do not see longevity limits on the immediate horizon. The increasing longevity carries some potential downsides as countries struggle to finance the increasingly long duration of retirement: The aging of society has left nations struggling with how to...

The IRS requires that individual retirement account (IRA) owners start taking minimum distributions from the account once they reach age 70 1/2. Failure to take the mandated withdrawal triggers a 50% tax penalty on the amount that should have been taken out. The financial crisis has prompted the government to approve a one year suspension of the required minimum distribution rule. The article referenced at the bottom of this page provides very good information about IRA withdrawal rules and the...