In December 2002, the U.S. Treasury Department issued some long-awaited guidance to employers about cash balance plans. These proposed regulations, issued under Internal Revenue Code Section 411 (b)(1)(H), prohibit age discrimination employment in benefit accruals and are fairly comprehensive in nature. Although a public hearing on the regulations was held in April 2003, the rules are not yet final as this article goes to press.

In essence, the regulations generally indicate that a company cannot directly or indirectly affect a participant’s benefit accrual based on age. (more…)

With changes in lifestyle after you retire, you could be spending more money related to health, recreation, your home, and your hobbies after retirement. Your cost of living after retirement may increase as well.

Medical

As previously mentioned, your medical costs will increase post retirement, and you’ll need to budget for this expense accordingly. (more…)

The economic status of older adults in the United States today is greatly improved, and there is much diversity of circumstances among different elder populations. In 2004 inflation-adjusted dollars, the median income of elderly households had increased from $13,228 in 1960 to $24,509 in 2004. Since the mid-1950s, poverty, as measured in 2005 by the U.S. Census Bureau’s poverty thresholds, has decreased for all age groups but most noticeably for adults age 65 years and older. (more…)

If you’re one of the “Baby Boomers,” you’re probably giving serious thought to retiring and become a full time retiring baby boomers, if you haven’t already retired - and if you have already retired, you may be wondering if you’re going to be able to afford to stay retired.

Today’s economic crisis complicates the situation considerably by increasing the following retirement risks: (more…)