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Ensuring Your Employees' Retirement Financial Security
ARTICLE | June 25, 2024
Authored by Vasquez + Company
As employees approach retirement, their financial readiness can vary significantly. This article explores the challenges and uncertainties facing future retirees, particularly Baby Boomers and Generation Xers. It highlights the importance of catch-up contributions, the impact of Social Security, and the financial risks associated with health, marital, and employment changes close to retirement age. Additionally, it offers practical advice on how to bolster retirement savings and improve financial security.
Key Points:
- Catch-Up Contributions: Employees aged 50 or older can make additional contributions to 401(k) or 403(b) plans.
- Retirement Risk Index: A study by Boston College indicates that 51% of working-age households may need to alter their standard of living upon retirement.
- Social Security Concerns: The strain on Social Security and the rising retirement age pose significant challenges.
- Financial Risks: Health, marital, and employment issues can severely impact retirement savings.
- Future Outlook: Increasing savings by at least 3% and extending working years by two years can substantially improve retirement security.
For more information, read the full article here.
Our firm provides the information for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. This article is not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided “as is,” with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose
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