Oldsters Refusing to Step Aside to Free Up Jobs

Save more, use 'catch-up' tax law provisions to turn things around

(NEWSER) - Retirement savers have been facing grim truths, like the fact that a 50% portfolio loss requires 100% in earnings to recover. But middle-of-the-road investors could recover in as little as 2 years if they make contributions, receive a company match, and see fair long-term portfolio returns, writes Linda Stern in Newsweek. Still, much depends on a person's age and wealth before the recession hit. More»

(NEWSER) - Low inflation could force the IRS to decrease the amount workers can contribute to their 401(k) plans to $16,000, USA Today reports. It would mark the first time the government has ever lowered contribution limits. Though a spokesperson says it’s too early for speculation, the IRS may not have any choice. "A strict interpretation of the code could lead them to believe that's their only option," a consultant says. More»

Cost-cutting efforts increasingly extend to pricey employee benefit

(NEWSER) - Shrinking 401(k) accounts may soon seem like a bit of a luxury as more and more companies eliminate matching contributions to the retirement accounts, reports BusinessWeek. Some 2% of firms in a recent survey said they had already cut out the match, and another 4% said they’ll drop it within the next year as the economy worsens. More»

Accounts tumble by up to 11%, but backers still love them

(NEWSER) - Tumbling stock markets have cracked open the piggy bank that many Americans use to store retirement savings—401(k) accounts—sparking fresh debate about how best to save money, the Washington Post reports. Supporters argue that 401(k)s offer bigger rewards than traditional pensions, which are less exposed to market turbulence. But they lose more on average too—between 7.2% and 11.2% over the last year. More»

From debt to 401(k) plans, it's never too late to prepare

(NEWSER) - According to a new survey, only 14% of US workers are very confident they'll be able to retire comfortably—and more than 50% haven't even tried to calculate how much money they'll need. Workers are increasingly planning to keep working past the retirement age—37% said they expected to work after hitting 65, which is up from 11% two decades ago. If all of the above scares you and you want to start planning, Time offers up six myths about retirement saving that you'll need to get past first: More»