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Yahoo
5 days ago
- Business
- Yahoo
The Retirement Funds Boomers Rely on Most — and Why Rising Generations Will Need a New Strategy
Whether retirement is like a sunrise on a distant horizon or you can already feel its golden rays warming your golden years, one thing is clear: Your money needs to be ready. While there are universal pillars of smart saving, such as keeping savings in a high-yield savings account, investing consistently and maintaining an emergency fund, each generation approaches retirement saving a little differently. For You: Check Out: When GOBankingRates teamed up with New York Life to understand how people are feeling about their finances today, one insight stood out. In a survey of more than 1,000 Americans ages 18 and older, only 20.81% of respondents age 65 and older said they rely on a 401(k) for income. In contrast, 43.93% said they receive income from an employer pension. If you're thinking that Gen Z or Millennials might not have the same access to pensions, you're right. The way people save for retirement is changing — and future retirees will need a more self-directed strategy. In the survey, respondents of all age groups were asked about their sources of household income. Unsurprisingly, older respondents — those in the 65-and-older group — reported high reliance on Social Security (90.17%) and pensions (43.93%). More surprising? A relatively small portion of Baby Boomers — just 20.81% — reported income from a 401(k). That figure is nearly on par with the catch-all category of 'other savings.' But that may not be shocking to those familiar with how retirement planning has evolved. As retirement writer Donna Fuscaldo noted in a piece for Kiplinger, 'For many of the baby boomers' working years, they had access to pensions and a strong job market. They didn't have to worry about where their income in retirement would come from.' Explore More: Fuscaldo pointed out that by the time Gen X entered the workforce in the '80s and '90s, many companies were shifting away from pensions and toward 401(k) plans. Essentially, the onus for saving for retirement began falling to the employee instead of the employer. Boomers also came into, and out of, the workforce during a time when Social Security largely seemed secure, or at least, not something they had to worry about long-term, giving them one more reason to feel financially secure in retirement. It's only natural that younger generations — Millennials, Zoomers, and even Gen X — rely mostly on income from their current jobs. While they're not withdrawing from their retirement accounts just yet, it's worth noting that 12.78% of respondents aged 55-64 reported 401(k) income, just eight percentage points below the 65-and-older group. As pensions become less prevalent, especially in the private sector, younger generations are expected to lean more on the 401(k) in the future. The survey found that 16.77% of respondents ages 45-54 and 15.43% of those 35-44 reported a 401(k) as an income source. That may sound surprisingly high, especially for those under 45, but it's likely reflective of multigenerational households, where income from a parent's or older relative's 401(k) factors into the household total. Either way, the data underscores the growing importance of self-funded retirement strategies for future generations. Younger generations are also more likely to piece together income from multiple streams. Notably, 36.21% of respondents ages 18-24 said they earn money from side hustles. This age group also reported 0% participation in annuities — a traditional retirement product — compared to 11.56% of Boomers and 6.11% of respondents aged 55-64. This suggests younger Americans could stand to boost their awareness of long-term savings tools. Boomers largely benefitted from a retirement system that included pensions, stable Social Security, and less personal responsibility to actively manage long-term investments. But the same cannot be said for today's rising generations. As Fuscaldo writes, 'In the early days of 401(k)s, people weren't saving, and there wasn't a ton of information available about saving, investing and planning for retirement.' That's no longer the case. Today's workers have access to an abundance of financial education about 401(k)s and virtually every other type of financial product, but they also face more responsibility. And many are skeptical about the long-term viability of Social Security. According to the Nationwide Retirement Institute, 45% of Gen Z and 39% of Millennials believe they'll never see the Social Security benefits they've earned. Perhaps that's why Gen Xers now on the cusp of retirement, as well as Millennials and Zoomers, are embracing new and diverse ways of saving for retirement, from 401(k)s to side hustle savings to life insurance with cash value components. The retirement playbook has changed. And while Boomers may have been able to count on a few key institutions, rising generations will have to get more creative, more informed, and more proactive about their financial and New York Life Insurance surveyed 1,009 Americans aged 18 and older from across the country between March 19 and March 125, 2025, asking twenty-one different questions: (1) What is your current employment status?; (2) Which of the following category or categories best describes your race or ethnicity? (If more than one category applies, please select all that apply); (3) What are the source(s) of income for your household? (Please select all that apply); (4) Please choose the approximate level of investible assets for your household; (5) Using the scale below, how do you feel about the following statement: 'I often take the opportunity to discuss my knowledge of financial products or services with others'; (6) Using the scale below, how do you feel about the following statement: 'I regularly read financial news or financial publications'; (7) Using the scale below, how do you feel about the following statement: 'Thinking about my future sometimes keeps me up at night'; (8) Using the scale below, how do you feel about the following statement: 'I have enough money to live the way I would like to'; (9) Using the scale below, how do you feel about the following statement: 'I believe that The American dream is within reach for people like me'; (10) Using the scale below, how do you feel about the following statement: 'Stories in the media sometimes make me nervous about my financial future'; (11) Using the scale below, how do you feel about the following statement: 'I can't really take risks in my life because I don't have a safety net if things go wrong'; (12) Thinking about the nation's economy, how would you rate economic conditions today?; (13) A year from now, do you think that during the next twelve months we'll have good times financially, or bad times, or what?; (14) Compared to 6 months ago, how has your level of uncertainty changed regarding the following societal and economic issues?; (15) Do you own any of the following products? (Please select all that apply); (16) Do you currently have a financial plan?; (17) On a 1 to 10 scale, where 1 means not at all confident and 10 means completely confident, how confident are you that you will meet your financial goals?; (18) What kind of financial professional have you worked with? (Please select all that apply); (19) Using the slider below, please indicate which statement best describes you.; (20) Using the slider below, please indicate which statement best describes you.; and (21) Using the slider below, please indicate which statement best describes you. In order to take the survey the respondents had to pass two screener questions (S1)Who is the primary financial decision-maker in your household? with the answer being they were at least involved in the households financial decision making and (S2) Which range best describes your total annual household income before taxes? with an answer above $50K. GOBankingRates used PureSpectrum's survey platform to conduct the poll. More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on The Retirement Funds Boomers Rely on Most — and Why Rising Generations Will Need a New Strategy
Yahoo
5 days ago
- Business
- Yahoo
The Retirement Funds Boomers Rely on Most — and Why Rising Generations Will Need a New Strategy
Whether retirement is like a sunrise on a distant horizon or you can already feel its golden rays warming your golden years, one thing is clear: Your money needs to be ready. While there are universal pillars of smart saving, such as keeping savings in a high-yield savings account, investing consistently and maintaining an emergency fund, each generation approaches retirement saving a little differently. For You: Check Out: When GOBankingRates teamed up with New York Life to understand how people are feeling about their finances today, one insight stood out. In a survey of more than 1,000 Americans ages 18 and older, only 20.81% of respondents age 65 and older said they rely on a 401(k) for income. In contrast, 43.93% said they receive income from an employer pension. If you're thinking that Gen Z or Millennials might not have the same access to pensions, you're right. The way people save for retirement is changing — and future retirees will need a more self-directed strategy. In the survey, respondents of all age groups were asked about their sources of household income. Unsurprisingly, older respondents — those in the 65-and-older group — reported high reliance on Social Security (90.17%) and pensions (43.93%). More surprising? A relatively small portion of Baby Boomers — just 20.81% — reported income from a 401(k). That figure is nearly on par with the catch-all category of 'other savings.' But that may not be shocking to those familiar with how retirement planning has evolved. As retirement writer Donna Fuscaldo noted in a piece for Kiplinger, 'For many of the baby boomers' working years, they had access to pensions and a strong job market. They didn't have to worry about where their income in retirement would come from.' Explore More: Fuscaldo pointed out that by the time Gen X entered the workforce in the '80s and '90s, many companies were shifting away from pensions and toward 401(k) plans. Essentially, the onus for saving for retirement began falling to the employee instead of the employer. Boomers also came into, and out of, the workforce during a time when Social Security largely seemed secure, or at least, not something they had to worry about long-term, giving them one more reason to feel financially secure in retirement. It's only natural that younger generations — Millennials, Zoomers, and even Gen X — rely mostly on income from their current jobs. While they're not withdrawing from their retirement accounts just yet, it's worth noting that 12.78% of respondents aged 55-64 reported 401(k) income, just eight percentage points below the 65-and-older group. As pensions become less prevalent, especially in the private sector, younger generations are expected to lean more on the 401(k) in the future. The survey found that 16.77% of respondents ages 45-54 and 15.43% of those 35-44 reported a 401(k) as an income source. That may sound surprisingly high, especially for those under 45, but it's likely reflective of multigenerational households, where income from a parent's or older relative's 401(k) factors into the household total. Either way, the data underscores the growing importance of self-funded retirement strategies for future generations. Younger generations are also more likely to piece together income from multiple streams. Notably, 36.21% of respondents ages 18-24 said they earn money from side hustles. This age group also reported 0% participation in annuities — a traditional retirement product — compared to 11.56% of Boomers and 6.11% of respondents aged 55-64. This suggests younger Americans could stand to boost their awareness of long-term savings tools. Boomers largely benefitted from a retirement system that included pensions, stable Social Security, and less personal responsibility to actively manage long-term investments. But the same cannot be said for today's rising generations. As Fuscaldo writes, 'In the early days of 401(k)s, people weren't saving, and there wasn't a ton of information available about saving, investing and planning for retirement.' That's no longer the case. Today's workers have access to an abundance of financial education about 401(k)s and virtually every other type of financial product, but they also face more responsibility. And many are skeptical about the long-term viability of Social Security. According to the Nationwide Retirement Institute, 45% of Gen Z and 39% of Millennials believe they'll never see the Social Security benefits they've earned. Perhaps that's why Gen Xers now on the cusp of retirement, as well as Millennials and Zoomers, are embracing new and diverse ways of saving for retirement, from 401(k)s to side hustle savings to life insurance with cash value components. The retirement playbook has changed. And while Boomers may have been able to count on a few key institutions, rising generations will have to get more creative, more informed, and more proactive about their financial and New York Life Insurance surveyed 1,009 Americans aged 18 and older from across the country between March 19 and March 125, 2025, asking twenty-one different questions: (1) What is your current employment status?; (2) Which of the following category or categories best describes your race or ethnicity? (If more than one category applies, please select all that apply); (3) What are the source(s) of income for your household? (Please select all that apply); (4) Please choose the approximate level of investible assets for your household; (5) Using the scale below, how do you feel about the following statement: 'I often take the opportunity to discuss my knowledge of financial products or services with others'; (6) Using the scale below, how do you feel about the following statement: 'I regularly read financial news or financial publications'; (7) Using the scale below, how do you feel about the following statement: 'Thinking about my future sometimes keeps me up at night'; (8) Using the scale below, how do you feel about the following statement: 'I have enough money to live the way I would like to'; (9) Using the scale below, how do you feel about the following statement: 'I believe that The American dream is within reach for people like me'; (10) Using the scale below, how do you feel about the following statement: 'Stories in the media sometimes make me nervous about my financial future'; (11) Using the scale below, how do you feel about the following statement: 'I can't really take risks in my life because I don't have a safety net if things go wrong'; (12) Thinking about the nation's economy, how would you rate economic conditions today?; (13) A year from now, do you think that during the next twelve months we'll have good times financially, or bad times, or what?; (14) Compared to 6 months ago, how has your level of uncertainty changed regarding the following societal and economic issues?; (15) Do you own any of the following products? (Please select all that apply); (16) Do you currently have a financial plan?; (17) On a 1 to 10 scale, where 1 means not at all confident and 10 means completely confident, how confident are you that you will meet your financial goals?; (18) What kind of financial professional have you worked with? (Please select all that apply); (19) Using the slider below, please indicate which statement best describes you.; (20) Using the slider below, please indicate which statement best describes you.; and (21) Using the slider below, please indicate which statement best describes you. In order to take the survey the respondents had to pass two screener questions (S1)Who is the primary financial decision-maker in your household? with the answer being they were at least involved in the households financial decision making and (S2) Which range best describes your total annual household income before taxes? with an answer above $50K. GOBankingRates used PureSpectrum's survey platform to conduct the poll. More From GOBankingRates 4 Things You Should Do When Your Salary Hits $100K If a Financial Advisor Doesn't Ask These 5 Questions in Your Consult, Keep Shopping 5 Steps to Take if You Want To Create Generational Wealth Robert Kiyosaki: 5 Money Habits of People Who Retire Early This article originally appeared on The Retirement Funds Boomers Rely on Most — and Why Rising Generations Will Need a New Strategy Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Business Wire
5 days ago
- Business
- Business Wire
Ameriprise Financial Recognized as Most Recommended Among Wealth Managers in 2025 Kiplinger Readers' Choice Awards
MINNEAPOLIS--(BUSINESS WIRE)--Ameriprise Financial, Inc. (NYSE: AMP) today announced that it received high recognition in the 2025 Kiplinger Readers' Choice Awards. Kiplinger, a publication known for personal finance advice and news, invited their readers to rate the financial firms they affiliate with on key dimensions of the client experience. Ameriprise was one of only two firms to earn an 'outstanding' accolade in all four categories surveyed: 'Clients are at the heart of everything we do, and we are honored that readers rated Ameriprise best-in-class in every category,' said Jim Cracchiolo, Chairman and Chief Executive Officer at Ameriprise. 'Throughout our unique 130-year history, we have had an unwavering focus on serving clients exceptionally well. Our top-tier capabilities and sophisticated solutions empower Ameriprise advisors to deliver quality, tailored advice and service, as well as the confidence people need to reach their financial goals across market cycles.' Kiplinger surveyed more than 2,000 of their readers across 13 different categories, asking them to name the financial product or service that they most frequently use. Within the wealth managers category, respondents were asked to rate companies they affiliate with on a 10-point scale based on: likelihood to recommend, overall satisfaction, advisor trustworthiness and quality of advice. The companies with the highest scores for each criteria won an 'outstanding' accolade. As Kiplinger highlighted in their announcement, readers who work with Ameriprise noted many positive, longtime relationships with their advisors. One survey respondent assessed the firm's financial planning services as 'truly objective' with 'sound recommendations' that are guided by the client's best interests in mind. To learn about Ameriprise, visit About Ameriprise Financial At Ameriprise Financial, we have been helping people feel confident about their financial future for more than 130 years 1. With extensive investment advice, global asset management capabilities and insurance solutions, and a nationwide network of more than 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs. Ameriprise did not pay a fee to be evaluated for this list but did pay a fee to cite the results. Kiplinger readers were invited to take the 2025 Readers' Choice Awards survey on from Feb. 20-March 21, 2025. Within the wealth management services category, respondents selected the wealth management provider they used most frequently and rated that provider on a ten-point scale in four criteria: likelihood to recommend to others, overall satisfaction, trustworthiness of the firm's advisers and quality of financial advice. Kiplinger awarded multiple providers with the highest-scoring providers in each criterion with an 'outstanding' designation. Award is not indicative of future performance or representative of any one client's experience. For more information, visit From Kiplinger's Personal Finance. ©2025 The Kiplinger Washington Editors. All rights reserved. Used under license. 1 Company founded June 29, 1894 Ameriprise Financial cannot guarantee future financial results. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Investment advisory products are made available through Ameriprise Financial Services, LLC., a registered investment adviser. Securities offered by Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2025 Ameriprise Financial, Inc. All rights reserved.
Miami Herald
7 days ago
- Business
- Miami Herald
TD Bank to Close 38 Locations by June 5: See the Full List
TD Bank plans to close 38 of its branches across 10 states and Washington, D.C., by June 5, as part of a broader corporate strategy to reduce physical locations amid growing digital banking trends. The closures come at a time when many banks across the country are downsizing brick-and-mortar operations due to their shifting consumer habits. Financial institutions, including JPMorgan Chase, Bank of America, and Wells Fargo, have each scaled back their branch networks in recent months. The pace of branch closures has doubled since 2020, according to Kiplinger, driven by increasing reliance on mobile apps and online platforms for daily transactions. TD Bank has emphasized that the closures are a routine part of its store evaluations, which a spokesperson told USA Today earlier this month "may result in some closures, consolidations, or relocations." However, the closures also follow the company's recent legal troubles. In 2024, the bank pleaded guilty to federal money laundering violations and agreed to pay over $3 billion in penalties, the largest such fine ever imposed under the Bank Secrecy Act. Connecticut (2) 1289 Foxon Rd., North Branford215 High St., Torrington District of Columbia (1) 1611 Wisconsin Ave. N.W., Washington, D.C. Florida (3) 1590 S. Nova Rd., Daytona Beach160 N.W. Main Blvd., Lake City500 Collins Ave., Miami Beach Maine (4) 112 Main St., Fairfield62 W. Main St., Fort Kent95 Main St., Gorham6 North St. (PO Box 713), Houlton Massachusetts (6) 860 S. Main St., Bradford465 N. Main St., East Longmeadow420 Franklin St., Framingham50 Holyoke St., Holyoke547 Broadway, Methuen2345 Main St., Tewksbury New Hampshire (4) 10 N. Main St., Bristol884 Main St., Contoocook40 High St., Hampton905 Elm St., Wilton New Jersey (6) 85 Pompton Ave., Cedar Grove1 Royal Rd., Flemington670 Laurel Ave., Holmdel191 E. Rte. 70, Marlton145 Skyline Dr., Ringwood555 Warren Ave., Spring Lake Heights New York (5) 460 Pulaski Rd., Greenlawn156 Dolson Ave. A-B, Middletown125 Park Ave., New York (Manhattan)451 Lexington Ave., New York (Manhattan)136 Margaret St., Plattsburgh Pennsylvania (3) 101 Lancaster Ave., Frazer346 W. Trenton Ave., Morrisville8600 Germantown Pike, Philadelphia South Carolina (2) 1501 Main St., Columbia6 Elmshorn Dr., Greer Virginia (2) 6200 Multiplex Dr., Centreville1750 N. Hampton Ave., Reston TD Bank has stated the closures are part of its regular review process aimed at aligning services with customer behavior. A representative told Fast Company, "As part of our ongoing strategic and business-as-usual reviews of TD's retail locations, we evaluate things like store traffic, customer needs, product use, and community landscape to determine any needed changes to our physical network." The spokesperson added, "We are committed to making this transition as smooth as possible for our impacted customers and colleagues and look forward to continuing to provide legendary service via one of our approximately 1,100 stores or any channel our customers choose." Meanwhile, although it is unclear how connected TD Bank's compliance issues are to the branch closures, the Department of Justice reported that the bank failed to monitor over $18 trillion in payments and allowed more than $600 million in illicit transactions. "TD Bank chose profits over compliance in order to keep its costs down," then-Attorney General Merrick Garland said during a press conference last year. New CEO Ray Chun has pledged organizational changes and reforms aimed at improving compliance. "Make no mistake, we will meet our commitments to our will get the job done," Chun said during a company call in October 2024. TD Bank is one of many financial institutions scaling back in-person services. Since the pandemic, foot traffic to physical branches has declined rapidly. The number of bank branches nationwide has decreased by 5.6 percent since 2020, according to Kiplinger, as the rise of mobile banking services has transformed how customers manage their finances. Related Articles These Are the World's Greenest Financial InstitutionsThree Ways China Is Fighting Trump's Tariff WarIs the Stock Market Open on Good Friday 2025? What We KnowDonald Trump Set to Change Bank Overdraft Fees: What to Know 2025 NEWSWEEK DIGITAL LLC.
Newsweek
03-06-2025
- Business
- Newsweek
TD Bank to Close 38 Locations by June 5: See the Full List
Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources. Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content. TD Bank plans to close 38 of its branches across 10 states and Washington, D.C., by June 5, as part of a broader corporate strategy to reduce physical locations amid growing digital banking trends. The closures come at a time when many banks across the country are downsizing brick-and-mortar operations due to their shifting consumer habits. Financial institutions, including JPMorgan Chase, Bank of America, and Wells Fargo, have each scaled back their branch networks in recent months. The pace of branch closures has doubled since 2020, according to Kiplinger, driven by increasing reliance on mobile apps and online platforms for daily transactions. TD Bank has emphasized that the closures are a routine part of its store evaluations, which a spokesperson told USA Today earlier this month "may result in some closures, consolidations, or relocations." However, the closures also follow the company's recent legal troubles. In 2024, the bank pleaded guilty to federal money laundering violations and agreed to pay over $3 billion in penalties, the largest such fine ever imposed under the Bank Secrecy Act. List of TD Bank Locations Closing by June 5 File photo of a TD Bank branch in New York. File photo of a TD Bank branch in New York. AP Photo/NewsBase Connecticut (2) 1289 Foxon Rd., North Branford 215 High St., Torrington District of Columbia (1) 1611 Wisconsin Ave. N.W., Washington, D.C. Florida (3) 1590 S. Nova Rd., Daytona Beach 160 N.W. Main Blvd., Lake City 500 Collins Ave., Miami Beach Maine (4) 112 Main St., Fairfield 62 W. Main St., Fort Kent 95 Main St., Gorham 6 North St. (PO Box 713), Houlton Massachusetts (6) 860 S. Main St., Bradford 465 N. Main St., East Longmeadow 420 Franklin St., Framingham 50 Holyoke St., Holyoke 547 Broadway, Methuen 2345 Main St., Tewksbury New Hampshire (4) 10 N. Main St., Bristol 884 Main St., Contoocook 40 High St., Hampton 905 Elm St., Wilton New Jersey (6) 85 Pompton Ave., Cedar Grove 1 Royal Rd., Flemington 670 Laurel Ave., Holmdel 191 E. Rte. 70, Marlton 145 Skyline Dr., Ringwood 555 Warren Ave., Spring Lake Heights New York (5) 460 Pulaski Rd., Greenlawn 156 Dolson Ave. A-B, Middletown 125 Park Ave., New York (Manhattan) 451 Lexington Ave., New York (Manhattan) 136 Margaret St., Plattsburgh Pennsylvania (3) 101 Lancaster Ave., Frazer 346 W. Trenton Ave., Morrisville 8600 Germantown Pike, Philadelphia South Carolina (2) 1501 Main St., Columbia 6 Elmshorn Dr., Greer Virginia (2) 6200 Multiplex Dr., Centreville 1750 N. Hampton Ave., Reston Why Are TD Bank Locations Closing? TD Bank has stated the closures are part of its regular review process aimed at aligning services with customer behavior. A representative told Fast Company, "As part of our ongoing strategic and business-as-usual reviews of TD's retail locations, we evaluate things like store traffic, customer needs, product use, and community landscape to determine any needed changes to our physical network." The spokesperson added, "We are committed to making this transition as smooth as possible for our impacted customers and colleagues and look forward to continuing to provide legendary service via one of our approximately 1,100 stores or any channel our customers choose." Meanwhile, although it is unclear how connected TD Bank's compliance issues are to the branch closures, the Department of Justice reported that the bank failed to monitor over $18 trillion in payments and allowed more than $600 million in illicit transactions. "TD Bank chose profits over compliance in order to keep its costs down," then-Attorney General Merrick Garland said during a press conference last year. New CEO Ray Chun has pledged organizational changes and reforms aimed at improving compliance. "Make no mistake, we will meet our commitments to our will get the job done," Chun said during a company call in October 2024. Why It Matters TD Bank is one of many financial institutions scaling back in-person services. Since the pandemic, foot traffic to physical branches has declined rapidly. The number of bank branches nationwide has decreased by 5.6 percent since 2020, according to Kiplinger, as the rise of mobile banking services has transformed how customers manage their finances.
