Key Takeaways A growing percentage of Americans believe they'll need at least $1 million to retire comfortably, according to a new survey from Betterment, a robo-advisor and fintech company. In 2025, nearly half (48%) of workers reported that they'd need at least $1 million to retire, up from 37% the year prior. Yet for many Americans, achieving that milestone may be challenging. Only about half (54.3%) of households actually had retirement account assets, while just 4.6% of households had assets worth more ...

Key Points A later retirement puts you at an advantage in certain regards. Figure out a withdrawal rate that supports you desired lifestyle while preserving your nest egg. Continue to invest wisely so your portfolio keeps generating returns. The $23,760 Social Security bonus most retirees completely overlook › A lot of people retire in their 60s, but doing so isn't for everyone. And there can be benefits to delaying retirement until your 70th birthday, especially if you enjoy what you do for a li ...

“Gen X is the first entirely do-it-yourself generation,” said Catherine Collinson, chief executive and president of Transamerica Institute and Transamerica Center for Retirement Studies. “I lose sleep over Gen X.”A new study by Nationwide Financial revealed that 61% of nonretired Gen X members didn’t view retirement as a serious priority until age 50 or older — and 26% won’t reach that point until age 60 or older. This delayed awareness has created a retirement crisis for this generation as they now scrambl ...

At 65 years old, Lloyd thought he was doing everything right. He was retired, his house was paid off, and he had $220,000 tucked away in his 401(k). But as the reality of daily expenses started chipping away at his nest egg, he called into "The Ramsey Show" with a simple question: should he start taking Social Security now and give his savings a break? "I'm 65 years old, be 66 in four months. I'm retired and right now I'm living off of my 401(k), and I wonder would I be better off to go ahead and start d ...

Key Takeaways "Coupled with rising costs, inadequate savings and the looming depletion of the Social Security trust fund, these factors underscore a retirement crisis in the US, requiring many households to boost their savings to achieve stable and sufficient income in retirement," wrote Torsten Slok, Chief Economist at Apollo, about these workers. Why This Matters Retirement shortfalls are growing, making higher 401(k) contributions crucial for older workers aiming to maintain their lifestyle. Understandin ...

As a spousal beneficiary, Bob’s wife could take a portion of the 401(k) as a lump sum. While this withdrawal would be penalty-free, it’s taxed as regular income, which could result in a hefty bill. She could also roll the inherited 401(k) over into her own 401(k) or IRA, if she has one.She’s 55, so she could live another 40 years. While she would receive some Social Security benefits in retirement, the couple has to consider whether that, combined with 401(k) withdrawals, would be enough to cover expenses a ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below. I’m 77 years old and I requested my 401(k) fund administrator to prepare my RMD. I was told I do not have to withdraw my money if I am still employed. Please confirm if this in fact an IRS rule or that of the fund management company? -Bea That is correct, Bea. If you are still employed, you do not have to take a required minimum distribution (RMD) from your current 401(k) regardless of your age, as long ...

MoMo Productions / Getty Images Designate your heirs as your beneficiaries to ensure they receive your 401(k). Key Takeaways Your 401(k) passes to the person you name on a beneficiary form—not through your will. Spouses and non-spouses face different rules and tax implications when inheriting a 401(k). Forgetting to update your beneficiary or leaving it blank can lead to probate and unintended recipients. Your 401(k) could be one of your biggest assets. But what happens to it after you die? Unli ...

After years of climbing the ladder, you’d finally made it. At 51, a high-paying role brought prestige and comfort — until the layoff notice hit. Suddenly, you’re staring down a shrinking job market and offers that don’t come close to your old salary. With a healthy $1.3 million tucked away in your 401(k), you’d like to draw some to live on right now, but you can’t touch it for another eight years without penalty. For many Americans who lose a job in their 40s or 50s, that untouchable retirement balance ...

SmartAsset and Yahoo Finance LLC may earn commission or revenue through links in the content below.A large, one-time conversion can create a significant upfront cost, which is why some investors choose to convert smaller portions over multiple years to manage the tax impact.When you convert pre-tax savings to a Roth IRA, the converted amount becomes taxable in the year of the transfer. This added income can increase your federal tax bill, move you into a higher tax bracket and affect other calculations tied ...