![\"retirement\"](\"https:\/\/i0.wp.com\/www.himmelsteinfinancial.com\/wp-content\/uploads\/2016\/04\/retirement.png?resize=635%2C114\")
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John F. Kennedy once said, \u201cChange is the law of life. And those who look only to the past or present are certain to miss the future.\u201d This is certainly true of preparing for retirement. If we continue to expect that the ways of the past will see us through to our futures, we will be left behind. The methods that helped prepare us for retirement are quickly disappearing, and we must start using others.<\/p>\n
Today\u2019s companies are rewriting the retirement rules for working Americans. Traditional pension plans, which gained prominence in the 20th century, are rapidly disappearing because of the high costs involved in funding them. Some corporations have underfunded or at-risk plans.<\/p>\n
To help protect employees with corporate pensions, the federal government has enacted laws requiring employers to meet a 100% funding target for their defined-benefit plans. Companies that sponsor pension plans are also required to pay higher insurance premiums to the Pension Benefit Guaranty Corporation (PBGC), which was created by Congress in 1974 to help protect American workers from the risk of pension default. Premiums have increased because the PBGC itself is facing a deficit as a result of more companies defaulting on their pension plans.<\/p>\n
Because of these costly requirements, it is becoming less and less attractive for companies to provide traditional pensions to retirees. Employers with underfunded plans may simply choose to eliminate them, and even companies with healthy plans may decide that defined-benefit plans are not worth the cost. As a result, it is likely that more companies will offer defined-contribution plans like the 401(k) to attract new employees and to help employees fund their own retirements.<\/p>\n
Thus, it is important to be aware that you may have less help from your employer and will probably have to rely more on your own savings and investments to fund your retirement.<\/p>\n
The government has tried to help by raising contribution limits to most employer-sponsored retirement plans. You can contribute money to these plans on a pre-tax basis. Your contributions and any earnings accumulate on a tax-deferred basis. Of course, remember that distributions from most employer-sponsored retirement plans are taxed as ordinary income and, if taken prior to reaching age 59\u00bd, may be subject to an additional 10% federal income tax penalty.<\/p>\n
A number of companies are taking steps to help workers fund retirement. Many have instituted automatic-enrollment in their defined-contribution plans to encourage more employees to participate. Some are enhancing the benefits of their plans by increasing the amount they contribute to employee accounts and\/or enhancing matching contributions.<\/p>\n
Many companies that still have traditional pension plans should be able to pay their promised benefits. But in light of recent trends, it would be wise to consider all possible sources of retirement income when reviewing your retirement strategy. With the changing retirement landscape, there may be no better time than now to size up your current situation. Your company-sponsored retirement plan will be just one piece of your retirement funding pie.<\/p>\n
The information in this article is not intended to be tax or legal advice, and it may not be relied on for the purpose of avoiding any federal tax penalties. You are encouraged to seek tax or legal advice from an independent professional advisor. The content is derived from sources believed to be accurate. Neither the information presented nor any opinion expressed constitutes a solicitation for the purchase or sale of any security. This material was written and prepared by Emerald. \u00a9 2016 Emerald Connect, LLC<\/p>\n","protected":false},"excerpt":{"rendered":"
A New Chapter for Retirement John F. Kennedy once said, \u201cChange is the law of life. And those who look only to the past or present are certain to miss the future.\u201d This is certainly true of preparing for retirement. If we continue to expect that the ways of the past will see us through […]<\/p>\n","protected":false},"author":1,"featured_media":0,"parent":0,"menu_order":0,"comment_status":"closed","ping_status":"closed","template":"","meta":{"spay_email":""},"jetpack_sharing_enabled":true,"jetpack_shortlink":"https:\/\/wp.me\/PdUwpZ-4g","jetpack-related-posts":[{"id":132,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/advisors\/","url_meta":{"origin":264,"position":0},"title":"25 Items Advisors Need","date":"04\/15\/2016","format":false,"excerpt":"Advisors Can Find Opportunities with Their Clients... \u00a0 and Look like a Hero at the Same Time If you read this and it sparks attention please don\u2019t be afraid to call or email Waiting or talking RMDs only at retirement. If they hate paying taxes now they will hate it\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":250,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/annuities\/","url_meta":{"origin":264,"position":1},"title":"Annuities","date":"04\/28\/2016","format":false,"excerpt":"Why Do People Buy Annuities? Annuities are insurance-based financial vehicles that\u00a0can provide\u00a0many benefits sought\u00a0by\u00a0retirement-minded investors. There are a number of reasons why people buy annuities. Deferral of taxes is a big benefit, and so is the ability to put large sums of money into an annuity \u2014 more than is\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":16,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/products\/","url_meta":{"origin":264,"position":2},"title":"Products","date":"04\/07\/2016","format":false,"excerpt":"Products We Represent We can give you and your client access to many top-notch products from an array of quality carriers. Please use us for any of the following: Life Insurance Annuities Disability Income Long Term Care Retirement Products Questions ? Call Paul !","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":880,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/resources\/check-your-term-group\/","url_meta":{"origin":264,"position":3},"title":"Have You Helped Your Client Check Their Term?","date":"12\/07\/2018","format":false,"excerpt":"Have You Helped Your Client Check Their Term? The Disconnects with Group or Association Term Often, it is\u00a0more expensive\u00a0because healthy employees are subsidizing the unhealthy employees and smokers. Limited total benefits\u00a0available - Is it enough? Usually 1 x salary paid by employer Possibly an additional 5x to 8x\u00a0salary at the\u2026","rel":"","context":"Similar post","img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":78,"url":"https:\/\/staging.himmelsteinfinancial.com\/index.php\/about\/","url_meta":{"origin":264,"position":4},"title":"About","date":"04\/13\/2016","format":false,"excerpt":"About Us At Himmelstein & Associates, we believe in the value of service, ingenuity, and integrity.\u00a0 We provide a one-stop solution for your client's insurance and financial planning needs. 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