Latest news with #CatherineCollinson
Yahoo
28-05-2025
- Business
- Yahoo
Think you won't live to 100? You might be wrong, and it'll cost you.
Who wants to live to 100? Not a lot of us, as it turns out. America's century club is getting larger, and reaching 100 is a realistic goal for a growing population of retirees. Longer life is a reward for improvements in exercise, diet and medical care. Yet, it's a club that only one in four Americans wants to join. Nationwide Retirement Institute, a division of the Nationwide insurance and financial services company, surveyed more than 1,000 Americans to gauge their thoughts on living a really long time. Most of us, they found, approach the topic with a mix of wonder and fear. Just 29% of adults said they want to live to 100. Among older workers, ages 55 to 65, only 23% voiced enthusiasm for the century club. Most Americans see living to 100 as a blessing, rather than a burden, the survey found. But the thought of actually living that long invokes a long list of worries: Declining health. Loss of mobility. Outliving loved ones. Running out of money. 'A lot of people would say, 'If I can live to 100 in good health, that's amazing, but if I'm going to live to 100 and be in poor health for the last 10 years, I'm not sure I'm up for that,'' said Catherine Collinson, CEO of the Transamerica Center for Retirement Studies. Centenarians are outliers in American retirement, but the odds might not be so long as you think. An American man who retires in good health stands an 8% chance of reaching 100, according to research by the American College of Financial Services, released in May along with the Nationwide survey. For a healthy female retiree, the chance of reaching 100 rises to 13%. For a healthy couple, there's a 20% chance that one partner will make a century. 'If you're a relatively healthy adult by the time you're 60 or 65, you're probably looking at 30 years of retirement,' said Kristi Martin Rodriguez, senior vice president of Nationwide Financial Marketing. Life expectancy rises with age. At birth, an American can expect to live between 70 and 80 years. By the time you reach 70, however, your expected longevity rises to at least 85. Most Americans underestimate the length of their retirement -- in other words, how long they will live. In a 2023 survey, the American College asked thousands of older adults how long a man of 65 could expect to live. Only 27% of respondents gave the correct answer: 20 years. 'I think a lot of people just look to their parents and their grandparents when they're thinking about how long they're likely to live,' said Michael Finke, professor of wealth management at the American College. 'But the reality is, half of men smoked back in the 1950s and early 1960s. People are taking better care of themselves. Survival rates for cancer are higher now than they were even 20 years ago.' The reality of American longevity has dire implications for retirement planning. The average over-50 worker expects to retire at 67, according to Transamerica research. But the average worker actually retires at 62, according to survey data from Transamerica and the Employee Benefit Research Institute. A worker who expects to retire by 67, and to die by 80, might plan for a 15-year retirement. That would be a mistake. Going back to those longevity statistics: A man or woman who retires at 62 can expect to reach 83 or 86, respectively. That would be at least a 20-year retirement. And that's the average. When you plan for retirement, experts say, you should plan for every scenario, including the one in which you live to 100. Many retirement planners assume a 30-year retirement. That span is the basis for the 4% rule: Plan to withdraw 4% of your retirement savings to cover your annual living expenses, adjusting the figure for inflation each year. The 4% rule prompts many financial planners to suggest Americans should aim to save $1 million for retirement. (Of course, millions of workers retire with much less, and many seem to be doing just fine.) If a retirement stretches to 35 or 40 years, however, the 4% rule starts to fall apart. 'Let's say you have a million dollars, and in the first year, you start taking out $40,000 to support your lifestyle,' Finke said, following the 4% rule. 'A very high percentage of the time, you're still going to have money in the bank after 30 years. But that drops very sharply after 35 years.' Worried you might live to 100? Here are some expert tips on how to prepare. The easiest way to write a retirement plan is with a retirement planner, who will know all about longevity rates and the 4% rule and the 30-year (or longer) retirement horizon. You can also do the work yourself. For a start, AARP and others offer retirement calculators. 'We ask how people have estimated their retirement savings needs, and if they have used a calculator, and most have not,' said Collinson of Transamerica. Americans can claim Social Security at 62. But that's pretty early, when you weigh the odds of living to 100. Consider working longer, and claiming Social Security later. There's a considerable financial reward for waiting until 70. A Stanford University study found that delaying retirement by just three to six months has the same impact on retirement savings as raising your 401(k) contribution rate by a full percentage point for 30 years. Commercial annuities, sold by insurance companies, deliver a guaranteed income stream in retirement, generally until death. The annuity industry has a mixed reputation. But recent legislation empowered employers to offer high-quality annuities as part of a 401(k) plan. That could be a game changer, said Surya Kolluri, head of the nonprofit TIAA Institute. 'In the corporate world,' he said, 'the move toward providing an annuitization option throughout your career is just beginning.' This article originally appeared on USA TODAY: Think you won't live to 100? You might be wrong.
USA Today
28-05-2025
- Health
- USA Today
Think you won't live to 100? You might be wrong, and it'll cost you.
Think you won't live to 100? You might be wrong, and it'll cost you. Show Caption Hide Caption Retirement group works to curb loneliness Combating loneliness and depression in their golden years, a Wisconsin senior citizen group is looking to add more members. Fox - Milwaukee Who wants to live to 100? Not a lot of us, as it turns out. America's century club is getting larger, and reaching 100 is a realistic goal for a growing population of retirees. Longer life is a reward for improvements in exercise, diet and medical care. Yet, it's a club that only one in four Americans wants to join. Nationwide Retirement Institute, a division of the Nationwide insurance and financial services company, surveyed more than 1,000 Americans to gauge their thoughts on living a really long time. Most of us, they found, approach the topic with a mix of wonder and fear. Just 29% of adults said they want to live to 100. Among older workers, ages 55 to 65, only 23% voiced enthusiasm for the century club. Most Americans see living to 100 as a blessing, rather than a burden, the survey found. But the thought of actually living that long invokes a long list of worries: Declining health. Loss of mobility. Outliving loved ones. Running out of money. 'A lot of people would say, 'If I can live to 100 in good health, that's amazing, but if I'm going to live to 100 and be in poor health for the last 10 years, I'm not sure I'm up for that,'' said Catherine Collinson, CEO of the Transamerica Center for Retirement Studies. Think you won't reach 100? Think again. Centenarians are outliers in American retirement, but the odds might not be so long as you think. An American man who retires in good health stands an 8% chance of reaching 100, according to research by the American College of Financial Services, released in May along with the Nationwide survey. For a healthy female retiree, the chance of reaching 100 rises to 13%. For a healthy couple, there's a 20% chance that one partner will make a century. 'If you're a relatively healthy adult by the time you're 60 or 65, you're probably looking at 30 years of retirement,' said Kristi Martin Rodriguez, senior vice president of Nationwide Financial Marketing. Life expectancy rises with age. At birth, an American can expect to live between 70 and 80 years. By the time you reach 70, however, your expected longevity rises to at least 85. Most Americans underestimate the length of their retirement -- in other words, how long they will live. In a 2023 survey, the American College asked thousands of older adults how long a man of 65 could expect to live. Only 27% of respondents gave the correct answer: 20 years. 'I think a lot of people just look to their parents and their grandparents when they're thinking about how long they're likely to live,' said Michael Finke, professor of wealth management at the American College. 'But the reality is, half of men smoked back in the 1950s and early 1960s. People are taking better care of themselves. Survival rates for cancer are higher now than they were even 20 years ago.' Living to 100 will cost you The reality of American longevity has dire implications for retirement planning. The average over-50 worker expects to retire at 67, according to Transamerica research. But the average worker actually retires at 62, according to survey data from Transamerica and the Employee Benefit Research Institute. A worker who expects to retire by 67, and to die by 80, might plan for a 15-year retirement. That would be a mistake. Going back to those longevity statistics: A man or woman who retires at 62 can expect to reach 83 or 86, respectively. That would be at least a 20-year retirement. And that's the average. When you plan for retirement, experts say, you should plan for every scenario, including the one in which you live to 100. Many retirement planners assume a 30-year retirement. That span is the basis for the 4% rule: Plan to withdraw 4% of your retirement savings to cover your annual living expenses, adjusting the figure for inflation each year. The 4% rule prompts many financial planners to suggest Americans should aim to save $1 million for retirement. (Of course, millions of workers retire with much less, and many seem to be doing just fine.) If a retirement stretches to 35 or 40 years, however, the 4% rule starts to fall apart. 'Let's say you have a million dollars, and in the first year, you start taking out $40,000 to support your lifestyle,' Finke said, following the 4% rule. 'A very high percentage of the time, you're still going to have money in the bank after 30 years. But that drops very sharply after 35 years.' Worried you might live to 100? Here are some expert tips on how to prepare. Make a retirement plan The easiest way to write a retirement plan is with a retirement planner, who will know all about longevity rates and the 4% rule and the 30-year (or longer) retirement horizon. You can also do the work yourself. For a start, AARP and others offer retirement calculators. 'We ask how people have estimated their retirement savings needs, and if they have used a calculator, and most have not,' said Collinson of Transamerica. Plan to work longer Americans can claim Social Security at 62. But that's pretty early, when you weigh the odds of living to 100. Consider working longer, and claiming Social Security later. There's a considerable financial reward for waiting until 70. A Stanford University study found that delaying retirement by just three to six months has the same impact on retirement savings as raising your 401(k) contribution rate by a full percentage point for 30 years. Get an annuity Commercial annuities, sold by insurance companies, deliver a guaranteed income stream in retirement, generally until death. The annuity industry has a mixed reputation. But recent legislation empowered employers to offer high-quality annuities as part of a 401(k) plan. That could be a game changer, said Surya Kolluri, head of the nonprofit TIAA Institute. 'In the corporate world,' he said, 'the move toward providing an annuitization option throughout your career is just beginning.'
Yahoo
28-05-2025
- Business
- Yahoo
Think you won't live to 100? You might be wrong, and it'll cost you.
Who wants to live to 100? Not a lot of us, as it turns out. America's century club is getting larger, and reaching 100 is a realistic goal for a growing population of retirees. Longer life is a reward for improvements in exercise, diet and medical care. Yet, it's a club that only one in four Americans wants to join. Nationwide Retirement Institute, a division of the Nationwide insurance and financial services company, surveyed more than 1,000 Americans to gauge their thoughts on living a really long time. Most of us, they found, approach the topic with a mix of wonder and fear. Just 29% of adults said they want to live to 100. Among older workers, ages 55 to 65, only 23% voiced enthusiasm for the century club. Most Americans see living to 100 as a blessing, rather than a burden, the survey found. But the thought of actually living that long invokes a long list of worries: Declining health. Loss of mobility. Outliving loved ones. Running out of money. 'A lot of people would say, 'If I can live to 100 in good health, that's amazing, but if I'm going to live to 100 and be in poor health for the last 10 years, I'm not sure I'm up for that,'' said Catherine Collinson, CEO of the Transamerica Center for Retirement Studies. Centenarians are outliers in American retirement, but the odds might not be so long as you think. An American man who retires in good health stands an 8% chance of reaching 100, according to research by the American College of Financial Services, released in May along with the Nationwide survey. For a healthy female retiree, the chance of reaching 100 rises to 13%. For a healthy couple, there's a 20% chance that one partner will make a century. 'If you're a relatively healthy adult by the time you're 60 or 65, you're probably looking at 30 years of retirement,' said Kristi Martin Rodriguez, senior vice president of Nationwide Financial Marketing. Life expectancy rises with age. At birth, an American can expect to live between 70 and 80 years. By the time you reach 70, however, your expected longevity rises to at least 85. Most Americans underestimate the length of their retirement -- in other words, how long they will live. In a 2023 survey, the American College asked thousands of older adults how long a man of 65 could expect to live. Only 27% of respondents gave the correct answer: 20 years. 'I think a lot of people just look to their parents and their grandparents when they're thinking about how long they're likely to live,' said Michael Finke, professor of wealth management at the American College. 'But the reality is, half of men smoked back in the 1950s and early 1960s. People are taking better care of themselves. Survival rates for cancer are higher now than they were even 20 years ago.' The reality of American longevity has dire implications for retirement planning. The average over-50 worker expects to retire at 67, according to Transamerica research. But the average worker actually retires at 62, according to survey data from Transamerica and the Employee Benefit Research Institute. A worker who expects to retire by 67, and to die by 80, might plan for a 15-year retirement. That would be a mistake. Going back to those longevity statistics: A man or woman who retires at 62 can expect to reach 83 or 86, respectively. That would be at least a 20-year retirement. And that's the average. When you plan for retirement, experts say, you should plan for every scenario, including the one in which you live to 100. Many retirement planners assume a 30-year retirement. That span is the basis for the 4% rule: Plan to withdraw 4% of your retirement savings to cover your annual living expenses, adjusting the figure for inflation each year. The 4% rule prompts many financial planners to suggest Americans should aim to save $1 million for retirement. (Of course, millions of workers retire with much less, and many seem to be doing just fine.) If a retirement stretches to 35 or 40 years, however, the 4% rule starts to fall apart. 'Let's say you have a million dollars, and in the first year, you start taking out $40,000 to support your lifestyle,' Finke said, following the 4% rule. 'A very high percentage of the time, you're still going to have money in the bank after 30 years. But that drops very sharply after 35 years.' Worried you might live to 100? Here are some expert tips on how to prepare. The easiest way to write a retirement plan is with a retirement planner, who will know all about longevity rates and the 4% rule and the 30-year (or longer) retirement horizon. You can also do the work yourself. For a start, AARP and others offer retirement calculators. 'We ask how people have estimated their retirement savings needs, and if they have used a calculator, and most have not,' said Collinson of Transamerica. Americans can claim Social Security at 62. But that's pretty early, when you weigh the odds of living to 100. Consider working longer, and claiming Social Security later. There's a considerable financial reward for waiting until 70. A Stanford University study found that delaying retirement by just three to six months has the same impact on retirement savings as raising your 401(k) contribution rate by a full percentage point for 30 years. Commercial annuities, sold by insurance companies, deliver a guaranteed income stream in retirement, generally until death. The annuity industry has a mixed reputation. But recent legislation empowered employers to offer high-quality annuities as part of a 401(k) plan. That could be a game changer, said Surya Kolluri, head of the nonprofit TIAA Institute. 'In the corporate world,' he said, 'the move toward providing an annuitization option throughout your career is just beginning.' This article originally appeared on USA TODAY: Think you won't live to 100? You might be wrong. Sign in to access your portfolio
Yahoo
01-03-2025
- Business
- Yahoo
What is the Saver's Credit, and do I qualify?
(NewsNation) — Millions of Americans can get a tax break if they contribute to a retirement account, but many don't take advantage of it. The Retirement Savings Contributions Credit, or 'Saver's Credit,' is a tax benefit for low- to moderate-income taxpayers who contribute to a retirement plan like a 401(k) or individual retirement account (IRA). It's worth up to $1,000 for single filers and up to $2,000 for those who are married filing jointly, depending on how much they make and contribute to their retirement account. But the saver's credit is 'a well-kept secret,' Catherine Collinson, CEO and president of Transamerica Center for Retirement Studies (TCRS), said in a recent report. 4 ways to maximize your tax refund A recent TCRS survey found that just over half (51%) of U.S. workers know about the credit. That percentage is even lower (44%) among those who could qualify for it: households that bring in less than $50,000. According to the IRS, only 5.8% of tax returns claimed the Saver's Credit in 2022. Here's what to know about the Saver's Credit and how much you could save. The Saver's Credit allows eligible taxpayers to claim a tax break for contributing to a retirement account like a 401(k) or IRA. The credit can be worth up to $1,000 for single filers who contribute $2,000 to a qualifying retirement account. Married couples filing jointly can offset 50% of retirement contributions on as much as $4,000 — making the credit worth $2,000 to them. It's a tax credit, not a tax deduction, which means it lowers your tax bill dollar for dollar. 'A tax credit is the holy grail of tax benefits,' Mark Steber, chief tax information officer at Jackson Hewitt Tax Service, told NewsNation in a recent interview. For example: With a $1,000 tax credit, your $2,000 tax bill would be lowered to $1,000, whereas a tax deduction lowers your taxable income, not your tax bill directly. The downside is that the Saver's Credit is nonrefundable, meaning it can reduce the tax you owe to zero, but it won't provide you with a tax refund. That means those who don't owe federal income tax don't benefit. 7 key tax terms you should know The Saver's Credit is meant to help those with modest incomes build their nest eggs, so not everyone qualifies. To be eligible, your adjusted gross income (AGI) needs to fall within certain thresholds. Single filers must have an AGI under $38,250. Those who are married filing jointly can't have an AGI above $76,500. Of course, you'll also have to contribute to a retirement account, such as any of the ones listed here. Your AGI determines your credit amount, which can be either 50%, 20% or 10% of your retirement contribution. Those who make less can have more of their retirement contribution offset. Here's how the credit rates and income limits break down for tax year 2024 (taxes you file in 2025): Credit rate Married filing jointly Head of household All other filers* 50% of your contribution AGI not more than $46,000 AGI not more than $34,500 AGI not more than $23,000 20% of your contribution $46,001- $50,000 $34,501 – $37,500 $23,001 – $25,000 10% of your contribution $50,001 – $76,500 $37,501 – $57,375 $25,001 – $38,250 0% of your contribution more than $76,500 more than $57,375 more than $38,250 To qualify, you also have to be: Age 18 or older, Not claimed as a dependent on another person's return, and Not a student Find out if you qualify for the Saver's Credit using the IRS tool here. The size of the credit depends on your income and filing status, but it tops out at $1,000 for single filers and $2,000 for married couples filing jointly. The math works like this: The maximum retirement contribution that can go toward the credit is $2,000 for a single filer and $4,000 for a married couple. So, at the top credit rate, 50%, those contributions would be worth $1,000 and $2,000, respectively. Here are a couple of scenarios: A single filer with an adjusted gross income of $35,000 contributes $2,000 to an IRA. That person would be eligible for a 10% credit, offsetting their retirement contribution by $200. A married couple filing jointly with an adjusted gross income of $50,000 contributes $2,000 to an IRA. That couple would be eligible for a 20% credit, a tax benefit worth $400. In 2022, the average amount of the Saver's Credit was $194, according to TCRS. It's not too late to contribute to an IRA for the 2024 tax year. The IRS allows tax filers to put money in an IRA until April 15, 2025, and still get the tax break for 2024. What is a Roth IRA for kids, and how does it work? 'It is one of the only — if not the only thing — you can do after year-end up until the tax due date to affect last year's taxes,' Steber said. Putting money into an IRA could make you eligible for the Saver's Credit, but there are other tax benefits as well. For example, contributions to a traditional IRA can reduce your taxable income. The Saver's Credit is going away in 2027 and being replaced by a new program called the 'Saver's Match.' Instead of receiving a credit, eligible individuals will have money contributed directly to their retirement account paid by the U.S. Treasury. 'The new match has the potential to benefit millions of low-income households, as even those who don't pay federal income taxes will be able to claim the matching federal contribution to their retirement accounts,' the Bipartisan Policy Center noted in a recent report. According to the IRS, a qualifying taxpayer who contributes $2,000 to a retirement account like an IRA can receive as much as $1,000, which is matched by the Treasury. 'Saver's Match may create an incentive to save for some people that the Saver's Credit does not reach,' the Congressional Research Service wrote in a 2023 report. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
