Latest news with #NorthwesternMutual
CNBC
6 hours ago
- Business
- CNBC
The market's rebound may put stocks at risk when the full tariff impacts take hold
The stock market has rebounded back above its April 2 levels before the impact of President Donald Trump's tariffs have fully hit the economy, and that could leave equities vulnerable if the data does start to sour. JPMorgan Strategist Mislav Matejka warned in a note to clients on Monday that the rebound since early April was boosted by some technical factors that no longer apply and that valuations are "stretched." "Positioning is not cautious anymore, short covering was significant and the systematic rerisking took place, ... future equity moves should be more driven by fundamental outcomes, rather than technicals," Matejka wrote. His team is looking for economic growth to soften and a potential rise in consumer prices in the months ahead, as "payback for frontloading of orders" ahead of tariffs, could reignite fears of the dreaded "stagflation." Add that all together and you have the environment for a weaker period for stocks. .SPX YTD mountain The S & P 500 is well above its April lows but has not made a new high since February. The tariff situation is far from settled. Trade tensions were stoked again on Monday when China pushed backed against the Trump administration's claims that it had broken the preliminary agreement reached in Geneva. But even if the latest flare up blows over, the market rebound could be overlooking the fact that tariffs are still well above their pre-Trump levels, even after all the pauses and reductions. "It looks like the tariff rate is not going to be in the mid-20s, but what's on paper today is still 12%, and that's still a big jump in terms of what the ultimate hit to the economy is," said Matt Stucky, chief portfolio manager for equities at Northwestern Mutual Wealth Management. To be sure, Northwestern Mutual is not forecasting a recession. Stucky said the downside risk for the market is probably more of a "run-of-the-mill" correction unless the unemployment rate starts to climb. Another key data point to watch is consumer spending, which is still solid and helping to support the stock market, Stucky said. "That might change though. ... We'll see how consumers actually react to higher prices when they arrive later this month and into the summer," he added.
CNBC
3 days ago
- Business
- CNBC
How much you should have saved by age 50, according to financial experts—and 3 steps to take if you're behind
Many Americans are anxious about their savings, especially as they approach retirement age. Over half of Gen Xers, those aged 45 to 60, say they have no more than three times their current annual income saved for retirement, according to a study commissioned by life insurance and financial planning provider Northwestern Mutual. This is significantly less than a benchmark set by Fidelity, one of the largest retirement plan providers in the U.S., which advises accumulating six times your current annual income by age 50 if you anticipate retiring at 67. Other experts take a different view. There's no magic number when it comes to saving for retirement, says Nathan Sebesta, a certified financial planner and owner of Artesia, New Mexico-based financial services firm Access Wealth Strategies. How much you anticipate spending every year of retirement and when you decide to retire can greatly affect how much you should have saved, Sebesta says. For example, those who plan on retiring later, as well as downsizing and living more frugally, may need less than Fidelity's benchmark, the report said. Additionally, the baseline amount you need can vary by as much as $1.49 million depending on what state you decide to retire in, according to an analysis by GOBankingRates earlier this year. To figure out how much you need, Sebesta recommends working backward. Start by deciding how much annual income you'll want in retirement and estimate how long you'll need that yearly income for. After taking that total and adjusting for inflation, you can determine how much you need to save each year and how your investments need to grow to hit that goal. If you're still feeling behind, Sebesta says there are a few other strategies you can consider to catch up and retire comfortably. "Don't panic," Sebesta says. "Start where you are and as soon as you can." While you can start claiming Social Security benefits as early as age 62, doing so means you'll receive a permanently reduced benefit. Alternatively, if you delay claiming benefits beyond full retirement age — 67 for Americans born after 1960 — your monthly payments could increase significantly, Sebesta says. For every year you wait up to age 70, your benefit grows by about 8%. That means someone born after 1960 who waits until 70 could receive up to 24% more than they would at 67. Once you turn 50, the Internal Revenue Service allows you to contribute more to various retirement plans in catch-up contributions. If you have a workplace retirement plan like a 401(k) or 403(b), you can contribute an extra $7,500 beyond the standard limit of $23,500, for a total of $31,000 in 2025. For those with an individual retirement account, the 2025 contribution limit is $7,000, plus an extra $1,000 in catch-up contributions for those 50 and older. These extra contributions not only help boost retirement savings but can also reduce your taxable income, which is especially valuable during high earning years in your 50s and 60s, Sebesta adds. Catch-up contributions are "definitely a neat benefit for people looking for more savings," Sebesta says, but they won't work for everyone: "You've got to be willing to put the money into the plan as well." If you haven't consistently contributed over the years or are struggling to keep enough cash on hand, finding the extra money to take advantage of these higher limits may be difficult. While it's not the ideal scenario, if you're significantly behind on retirement savings and working on paying off debt, Sebesta says you may have to consider lowering your expected lifestyle in retirement. If you have 10 to 15 years left to plan, the focus may need to shift to paying off debt and getting to a point where you can live on less in retirement, Sebesta says. This may look like scaling back on expenses, downsizing your lifestyle or living in a more affordable area. The last option would be to continue working in retirement. "No one ever dreams of that goal," Sebesta says. "But if they do delay for so long and are not able to catch up completely, that might be, sadly, one of the realistic opportunities that they would have." ,
Yahoo
3 days ago
- Business
- Yahoo
Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year
If you've ever assumed retirement meant having a seven-figure nest egg, you're in good company — and maybe a little stressed. For years, Americans have treated the $1 million mark as the gold standard for retiring comfortably. Anything less? Cue the panic attacks. But according to Northwestern Mutual's just-released 2025 Planning & Progress Study, the average American now believes they need $1.26 million tucked away to retire in peace. That's actually down from $1.46 million last year. Don't Miss: Maker of the $60,000 foldable home has 3 factory buildings, 600+ houses built, and big plans to solve housing — 'Scrolling To UBI' — Deloitte's #1 fastest-growing software company allows users to earn money on their phones. Sure, the so-called magic number dropped by $200,000, but don't pop the champagne just yet. According to the same study, most Americans are still wildly unprepared. More than half – 51% – say it's somewhat or very likely they'll outlive their savings. Only 16% feel confident that outliving their savings is "very unlikely." So if your retirement plan is "hope for the best," you're not alone. The 'magic number' to retire comfortably may be down this year, but it's still far beyond what many people actually have. And the gap isn't just wide — it's a canyon. Vanguard's 2024 report puts the average 401(k) balance across all age groups at just $134,128. That's barely a tenth of what Americans say they'll need to retire comfortably. Trending: Maximize saving for your retirement and cut down on taxes: . And what's behind the drop? Inflation is still top of mind, but it's cooled off—dropping from around 6% in 2023 to about 3% in 2024. That doesn't mean prices are falling; it just means they're not rising quite as fast. Groceries still feel like a splurge and rent still makes you cry, but apparently, that slight dip was enough for Americans to shave down their expectations. Either way, the new target still feels like a stretch. One in four Americans has just a single year of income saved. Among Gen X'ers, 52% have saved up to three times their annual income, but 54% don't think they'll be financially ready to retire when the time comes. Which raises a fair question—not from a study or expert, just plain observation: Are Americans adjusting the number because they think they can genuinely live on less, or have they just accepted that $1.26 million sounds more reachable than $1.46 million? Maybe this is optimism. Maybe it's financial you're wondering how anyone hits that $1.26 million target: you either start young or start wealthy. To get there by age 65, a 20-year-old would need to sock away $330 a month at a 7% return. Wait until you're 50? That jumps to a casual $3,958 per month. Yes, the goal dipped—but the struggle to reach it hasn't. Americans may be adjusting expectations, but most still have a long way to go before retirement feels anything close to "comfortable." Read Next: Many are using retirement income calculators to check if they're on pace — Deloitte's fastest-growing software company partners with Amazon, Walmart & Target – Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? APPLE (AAPL): Free Stock Analysis Report TESLA (TSLA): Free Stock Analysis Report This article Can You Guess What Americans Think They Need To Retire Comfortably? Hint: The 'Magic Number' Just Dropped From Last Year originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Business Wire
3 days ago
- Business
- Business Wire
AM Best Assigns Issue Credit Rating to The Northwestern Mutual Life Insurance Company's New Surplus Notes
BUSINESS WIRE)-- AM Best has assigned a Long-Term Issue Credit Rating (Long-Term IR) of 'aa' (Superior) to the $1 billion, 6.17% surplus notes, due 2055, issued by The Northwestern Mutual Life Insurance Company (Northwestern Mutual) (Milwaukee, WI). The outlook assigned to this Credit Rating (rating) is stable. The proceeds from the surplus notes offering will be used for general corporate purposes. The newly issued surplus notes will remain subordinated to policyowner liabilities. Financial leverage and interest coverage are expected to remain within AM Best's guidelines for the assigned rating. The existing ratings of Northwestern Mutual continue to reflect its balance sheet strength, which AM Best assesses as strongest, as well as its very strong operating performance, very favorable business profile and very strong enterprise risk management. This press release relates to Credit Ratings that have been published on AM Best's website. For all rating information relating to the release and pertinent disclosures, including details of the office responsible for issuing each of the individual ratings referenced in this release, please see AM Best's Recent Rating Activity web page. For additional information regarding the use and limitations of Credit Rating opinions, please view Guide to Best's Credit Ratings. For information on the proper use of Best's Credit Ratings, Best's Performance Assessments, Best's Preliminary Credit Assessments and AM Best press releases, please view Guide to Proper Use of Best's Ratings & Assessments. AM Best is a global credit rating agency, news publisher and data analytics provider specializing in the insurance industry. Headquartered in the United States, the company does business in over 100 countries with regional offices in London, Amsterdam, Dubai, Hong Kong, Singapore and Mexico City. For more information, visit
Newsweek
23-05-2025
- Business
- Newsweek
Americans Have a 'Magic Number' They Need for Retirement
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. Americans believe they need a "magic number" to retire comfortably, far beyond what many have been able to save. According to a study from Northwestern Mutual that polled more than 4,600 adults in January, Americans think they need $1.26 million to comfortably retire. For those aiming to retire in 30 years, the financial math to reach this goal is sobering. To attain the $1.26 million retirement goal based on a 7 percent annual return in investments, a person would need to put away approximately $1,035 each month, which amounts to $12,420 annually. If they're saving 15 percent of their income—a commonly recommended target for retirement savings—this would require an annual salary of around $82,800, more than $20,000 more than the national median salary of $61,984. However, the study reveals that 25 percent of Americans have saved only one year or less of their current annual income for retirement, and over half fear they will outlive their savings. Gen Xers, who are next in line to retire after baby boomers, are particularly concerned, with 54 percent believing they will not be financially prepared when the time comes. Why Is Retiring Getting Harder? While commonly touted as the "golden years" of life, a comfortable retirement is becoming out of reach for plenty of Americans. In an era where the cost of living continues to outpace wages and traditional retirement structures have all but vanished, saving for retirement has transformed from a long-term financial goal into a daily struggle for many Americans. Bobbi Rebell, CFP and personal finance expert at frames the situation starkly. "The recent market downturn, despite its recovery, was a big reminder that retirement funding is fragile," she told Newsweek. "It has never been easy but it has been something that Americans did not have to think about as directly in the past because many had pensions as well as family support systems in place to help control the variables." That foundation has steadily eroded. Gone are the days when defined benefit pensions formed a safety net for retirees. Today, most workers rely on self-directed savings plans—if they're lucky enough to have access to them at all, Rebell explained. "Not only have defined benefit plans like pensions become rare," Rebell notes, "but self-directed defined contribution plans, like 401(k)s, are not available for many people who work in the gig economy. It is no wonder people feel vulnerable and are lowering their expectations when it comes to their retirement nest egg." Composite image created by Newsweek. Composite image created by Newsweek. Newsweek Illustration / Canva Ashley Morgan, a debt and bankruptcy lawyer and owner at Ashley F Morgan Law, echoes the difficulty facing workers, especially in a volatile housing market. "Cost of living has been steadily on the rise. Saving for retirement is difficult for many with living costs rising and retirement costs being stagnant," she told Newsweek. She adds that one of the most common retirement strategies—building home equity over time—is increasingly out of reach. "Now, since younger generations are not buying properties or house prices are so high that mortgage payments are substantial, saving for retirement is not possible when you have a mortgage." Renters, in particular, are at a disadvantage, often facing rising housing expenses that eat into any potential savings. "With increasing rent," Morgan explains, "it means increases in income are automatically offset, at least to a certain degree." Another significant challenge is the shift in employment patterns. "Many people work for smaller companies or perform contracting jobs like gig work," says Morgan. These jobs typically don't offer retirement benefits, and the lack of employer matching makes it less appealing to contribute independently. Frequently changing your job also makes it difficult to accumulate long-term savings. Then there are student loans—a burden that can linger well into what should be peak retirement savings years. While some of these borrowers have recently been protected by pandemic-era rules that stopped the collection of unpaid education debts, the Trump administration has now ordered the Department of Education to begin resuming forced collections, which can result in wage and Social Security garnishment. "I unfortunately see people in their 60s still paying student loans, some for their own educations and some for their children," Morgan said. "These student loans often are paid at the expense of saving for retirement." These compounding factors, which have made saving more difficult, also mean many are working later in life than previous generations. A 2023 report from the Pew Research Center revealed that about one in five Americans aged 65 and older were still working, almost double the proportion from 35 years ago. According to the Bureau of Labor Statistics, 8.2 million people over 65 were employed in February 2015. By February 2025, that number had grown to 11.1 million, marking a 35 percent increase. A recent study by Transamerica Center for Retirement Studies found that more than half of current workers—52 percent—plan to work at least part-time in retirement. While acknowledging these challenges, Rebell does see a silver lining in the growing trend of older workers. "The growing trend of older workers is not necessarily a bad thing. Working gives purpose and can provide an extra layer of financial security," she said. "As people live healthier for longer lives, staying in the workforce longer makes a lot of sense." But for millions of Americans, working longer may not be a choice, but a necessity. With financial pressures mounting and support systems weakened, the modern retirement landscape is less a peaceful reward for years of work and more a shifting target that is becoming harder and harder to attain.
