retirement savings Archives - Page 3 of 13 - The Free Financial Advisor

How Much Monthly Income Does the Average American Over 70 Have in Retirement?

August 13, 2026 by Brandon Marcus Leave a Comment

Retirement income for Americans over 70 can look surprisingly different from one household to the next. In 2026, the average Social Security retirement benefit for someone ages 70 to 74 was about $2,083 per month, or just under $25,000 a year.

That number sounds straightforward until the phrase “retirement income” enters the room and starts rearranging the furniture. Social Security represents only one piece of the retirement-income puzzle, and pensions, 401(k) withdrawals, IRA distributions, investment income, rental income, and even part-time work can change the monthly picture dramatically.

The Social Security Number Gives the Clearest Starting Point

The Social Security Administration provides a useful age-by-age snapshot, and the numbers show something interesting about retirement benefits after 70. In December 2025, retired workers ages 70 to 74 received an average of just over $2,200 in Social Security retirement benefits. The average fell gradually with age.

That decline does not mean Social Security suddenly decides to trim someone’s check after a certain birthday. Instead, the figures reflect differences among the people in each age group, including when they claimed benefits and their lifetime earnings histories.

Why the Number Changes So Much From One Retiree to Another

Retirement income depends heavily on what someone built before leaving the workforce. Social Security benefits depend on earnings history and the age when benefits begin, while retirement accounts depend on contributions, investment performance, withdrawals, and the length of time the money needs to last. A retiree with a pension can have a very different monthly budget from someone who spent a career relying primarily on a 401(k).

Housing also changes the equation in a hurry. Someone who owns a home outright may face a very different monthly expense load from someone still carrying a mortgage, while property taxes, insurance, utilities, transportation, and food can reshape the budget even when two households receive identical income. That is why comparing one retiree’s monthly check with another’s can create more confusion than clarity.

Age 70 Can Actually Be a Significant Retirement Milestone

For Social Security, age 70 matters because delayed retirement credits stop accumulating once a person reaches 70. Someone who waits to claim Social Security until 70 can receive a substantially larger monthly benefit than someone who claimed earlier, although the best claiming age depends on individual circumstances. The Social Security Administration notes that benefits depend on earnings history, claiming age, and other factors rather than one universal retirement amount.

The 2026 figures also show just how different individual benefits can be. The average retired worker receives nowhere near the maximum, while a worker with a very high earnings history who claims at 70 can receive more under the specific assumptions Social Security uses for its maximum-benefit example. That is a useful reminder that “average” describes a large population, not a target every retiree should expect to hit.

The Better Question Is Whether the Income Covers the Lifestyle

A monthly retirement income figure only becomes meaningful when it meets actual expenses. A retiree spending $3,000 a month needs a very different income stream from someone spending $5,000, even if both receive exactly the same Social Security benefit. The gap between income and expenses matters more than a national average printed on a spreadsheet.

That makes the average Social Security benefit for Americans ages 70 to 74 useful as a reference point, but not as a retirement-income goal. A realistic retirement budget should account for housing, healthcare, taxes, transportation, food, insurance, hobbies, travel, and those wonderfully sneaky expenses that appear whenever an appliance decides it has enjoyed enough of this mortal existence. The strongest retirement plans focus on dependable income, manageable spending, emergency reserves, and a withdrawal strategy that can adapt as circumstances change.

The Retirement Number Worth Watching Is Your Own

For Americans over 70, there is no single “average monthly retirement income” that tells the whole story. Current Social Security data puts the average retired-worker benefit at about $2,225 a month for ages 70 to 74, while Census data shows that older households can have substantially more total income once other sources enter the picture.

The practical takeaway is simple: use national averages as a measuring stick, not a verdict. The more useful calculation starts with the income that actually arrives each month and compares it with the expenses that actually leave the bank account.

How does your retirement income compare with the national figures, and which income source makes the biggest difference in your monthly budget?

5 Retirement Plan Fees That Look Small Until You Calculate the Long-Term Cost

August 9, 2026 by Brandon Marcus Leave a Comment

A retirement account can resemble a well-packed suitcase before a long vacation. Everything looks neat, organized, and ready to go. Then a handful of tiny items somehow take up far more space than expected. Retirement fees work the same way. They often appear harmless on a statement, yet years of steady deductions can quietly shrink an account.

That does not mean every retirement plan deserves suspicion. Many workplace plans offer valuable employer matches and tax advantages that easily outweigh reasonable fees. Still, anyone who contributes to a 401(k) or IRA should know where the money goes because even modest costs deserve attention when decades of compounding enter the picture. For 2026, the IRS increased the annual 401(k) contribution limit to $24,500 and the IRA contribution limit to $7,500, making it even more important to avoid unnecessary costs while building retirement savings.

1. Investment Expense Ratios

Expense ratios rarely grab attention because they appear as percentages instead of dollar amounts. A fund with a 0.80% annual expense ratio may not sound very different from one charging 0.20%, especially during a busy enrollment meeting. Those fractions, however, continue working every year whether markets rise or fall.

Imagine two investors who each contribute the same amount into similar funds for decades. One pays a noticeably lower expense ratio while the other sticks with the higher-cost option. Nobody can predict the exact ending balance because market returns constantly change, but the lower-cost investor often keeps substantially more money simply because fewer dollars disappear into annual expenses. That simple comparison explains why many investors review expense ratios before selecting investments instead of focusing only on recent performance.

2. Administrative Plan Fees

Many workplace retirement plans charge administrative fees to cover recordkeeping, customer service, compliance, and other operating costs. Employers sometimes pay these expenses directly, while other plans deduct them from participant accounts. Because the deduction often appears only once or twice each year, many people barely notice it.

These charges are not automatically excessive. Running a retirement plan involves real costs, and somebody must cover them. Still, employees should read plan disclosures and compare available options whenever possible. A modest annual administrative fee might remain perfectly reasonable, but knowing exactly what appears on the statement eliminates surprises and encourages smarter decisions during open enrollment.

3. Individual Service Charges

Some retirement fees only appear after a specific action. Taking a plan loan, requesting a paper statement, processing certain distributions, or working with professional investment management may trigger separate service charges. Each fee looks small on its own, yet several transactions throughout a career can gradually chip away at savings.

Picture someone who frequently changes investments, requests special paperwork, and occasionally borrows from a retirement account. None of those decisions automatically qualifies as a mistake because life happens. Even so, checking the fee schedule before completing optional transactions helps prevent unnecessary costs. Sometimes a free online option accomplishes the same goal without adding another charge.

4. High-Cost Advisory or Managed Account Fees

Many retirement plans now offer managed account services that build and monitor investment portfolios. For some investors, especially those who feel overwhelmed by investing, paying for professional guidance provides welcome peace of mind. The service itself is not the problem.

The important question involves value. A managed account that charges an additional annual fee should provide meaningful help that matches the investor’s situation. Otherwise, a simple target-date fund or diversified investment option may accomplish similar objectives at a much lower ongoing cost. Comparing both approaches before signing up can save money year after year without sacrificing a solid retirement strategy.

5. Fees That Follow Rollovers or New Accounts

Changing jobs often means deciding what to do with an old retirement account. Some workers leave money in the former employer’s plan, others roll funds into a new employer’s plan, and many choose an IRA. Each option carries its own potential fee structure, so the cheapest choice depends on the specific accounts involved.

A rollover deserves more than a quick signature. One IRA might offer thousands of investment choices but include higher annual account costs or expensive fund options. Another could provide lower-cost investments that fit long-term goals more effectively. Comparing fees before moving money prevents an unpleasant surprise later. If something about the transfer process or account servicing seems inaccurate or unfair, consumers also have the option to submit a complaint through the Consumer Financial Protection Bureau.

Small Numbers Can Cast Long Shadows

Retirement planning rarely produces dramatic movie moments. Success usually comes from hundreds of ordinary decisions repeated consistently over many years. Reviewing fee disclosures once a year probably will not feel exciting, but that simple habit can protect more of every contribution and allow savings to work harder.

No fee deserves automatic rejection because many provide valuable services. The real goal involves matching the cost with the benefit while avoiding charges that add little value. A few minutes spent reading plan documents today may help preserve much more money decades down the road, especially as contribution limits continue to rise and retirement balances grow.

Which retirement plan fee surprised you the most, and have you ever discovered a charge you did not expect? Let’s hear your experience in the comments.

Ages 60 to 63: How the New Catch-Up Contribution Rules Change Retirement Saving

August 2, 2026 by Brandon Marcus Leave a Comment

Retirement planning sometimes feels like a race where the finish line keeps moving. For workers ages 60 to 63, new 2026 catch-up contribution rules create a bigger lane for saving during those important final working years. The change gives eligible employees a chance to put more money into certain workplace retirement plans when every extra dollar can matter.

The new catch-up contribution rule does not magically fix years of missed savings or guarantee a comfortable retirement. Instead, it gives older workers another tool in the retirement toolbox, right next to budgeting, investing, and making thoughtful decisions about future income. The key involves knowing the new limits and using them wisely.

The Bigger Catch-Up Opportunity Arrives at the Right Time

Workers who turn 60, 61, 62, or 63 during 2026 can use a higher catch-up contribution limit in many 401(k), 403(b), governmental 457 plans, and the federal Thrift Savings Plan. The IRS set the special age 60 to 63 catch-up amount at $11,250 for 2026, compared with the regular catch-up amount of $8,000 for many workers age 50 and older.

That difference gives eligible savers an additional boost during a period when retirement often feels much closer than it did a decade earlier. Picture a worker who turns 61 in 2026 and wants to squeeze more savings into the last stretch before retirement. Instead of hitting the usual catch-up ceiling, that person gets access to the higher limit if the employer plan allows catch-up contributions.

The regular 401(k) employee contribution limit for 2026 stands at $24,500. Someone ages 60 to 63 who reaches the higher catch-up limit could contribute up to $35,750 in total through employee deferrals and catch-up contributions.

That larger number may look intimidating, but the goal does not require everyone to max out the account. Even increasing contributions gradually can help someone build more retirement resources. A small payroll adjustment today can create a meaningful habit tomorrow.

This Rule Helps Late Savers and Careful Planners

Many people reach their 60s with a retirement account that looks different from the plan they imagined decades earlier. Career changes, family expenses, medical costs, and simple life surprises can interrupt even the best savings intentions. The new catch-up rule gives some workers extra room to respond during the final years before retirement.

The rule also helps people who already save consistently and want to accelerate their progress. A household reviewing its retirement strategy might look at income needs, expected retirement dates, and account balances before deciding whether larger contributions fit the budget. The catch-up provision provides flexibility, not a requirement.

A common misconception involves thinking someone must be behind to use catch-up contributions. The IRS rules do not require workers to prove they fell short earlier in life before making these additional contributions. Eligible employees can use the opportunity simply because they reached the qualifying age.

Another important detail involves employer plans. A worker needs a retirement plan that permits catch-up contributions, and payroll systems must process the contributions correctly. Checking plan details before increasing contributions can prevent frustrating surprises.

IRAs Still Matter Alongside Workplace Plans

The new age 60 to 63 rule focuses on workplace retirement plans, but individual retirement accounts remain part of the bigger picture. For 2026, the IRA contribution limit rises to $7,500, and the IRA catch-up contribution for people age 50 and older rises to $1,100.

An IRA does not replace a workplace plan, but it can add another piece to a retirement strategy. Some people use an IRA for additional savings, investment choices, or account consolidation. Others may prefer focusing on their workplace plan first, especially if their employer offers matching contributions.

Retirement accounts come with different rules, and contribution limits do not automatically make one account better than another. A person’s income, goals, investment preferences, and future plans all affect which approach makes sense. The new limits simply create more room for planning.

The biggest mistake involves ignoring these opportunities because retirement feels too complicated. Retirement rules can look like a bowl of alphabet soup filled with numbers and letters, but the basics remain simple: know the limits, review the options, and make decisions that match personal goals.

The Final Working Years Can Become a Powerful Savings Window

Ages 60 to 63 often represent a unique moment in retirement planning. Workers may have more income than they expect during their final career years, while retirement sits close enough to make every decision feel more important. The enhanced catch-up contribution rule recognizes that timing.

A few extra years of focused saving can change the shape of a retirement plan. The new rule gives ages 60 to 63 another tool, and smart planning determines how effectively that tool gets used.

What do you think about the new catch-up contribution rules for workers ages 60 to 63? Will this change affect how you approach retirement saving, or do you think other planning strategies matter more?

4 Reasons Social Security Benefits Can Stop or Be Reduced in 2026

July 28, 2026 by Brandon Marcus Leave a Comment

Social Security benefits can stop or shrink in 2026, and the reason may have nothing to do with some dramatic overnight collapse of the program. A retiree can see a smaller check because of work income, an early filing decision, taxes, or another deduction that quietly nibbles away at the money that arrives each month.

That makes Social Security planning a little like checking a restaurant bill before paying. The menu price may look familiar, but the final number can change once all the extras show up. Knowing the four biggest reasons benefits can get reduced or interrupted in 2026 can help workers and retirees avoid unpleasant surprises and build a more realistic retirement income plan.

1. Working Too Much Before Full Retirement Age Can Reduce Your Check

The first big reason involves a common retirement scenario: someone starts collecting Social Security but keeps working. There is nothing wrong with working while receiving retirement benefits, but people younger than full retirement age face an earnings test that can reduce their payments if their wages climb above the annual limit. In 2026, someone under full retirement age for the entire year can earn $24,480 before Social Security deducts $1 in benefits for every $2 earned above that amount.

The rules change for someone who reaches full retirement age during 2026. The earnings limit rises to $65,160 for earnings before the month the person reaches full retirement age, and Social Security deducts $1 in benefits for every $3 earned above that limit. Once full retirement age arrives, earnings no longer reduce retirement benefits, no matter how much the person earns. For someone who starts a part-time job after claiming benefits, that distinction can make a major difference, especially when a few extra shifts turn into a surprisingly large annual paycheck.

2. Claiming Early Permanently Shrinks the Benefit

The second reason can happen before the first Social Security check ever arrives. Workers can generally claim retirement benefits as early as age 62, but claiming before full retirement age permanently reduces the monthly benefit compared with waiting for full retirement age. For people turning 62 in 2026, full retirement age is 67, so filing five years early can create a much smaller monthly payment for the rest of retirement.

That decision deserves more attention than the simple question of whether someone needs money right now. A person who files at 62 because work has become difficult may have a perfectly sensible reason, while another person with adequate savings might benefit from waiting. Social Security also rewards delayed claiming after full retirement age with a larger monthly benefit, up to age 70, so the choice involves more than grabbing the earliest available check and calling it a day.

3. Taxes Can Take a Bite Out of Social Security Income

Social Security benefits can also create a tax bill, which can make the amount available to spend smaller than the gross benefit shown on a statement. The tax rules depend on a person’s combined income, including adjusted gross income, tax-exempt interest, and half of Social Security benefits. Depending on the household’s overall income, some benefits may count as taxable income on a federal tax return.

This creates a situation that catches some retirees off guard. A retiree might collect Social Security, withdraw money from a traditional IRA, and earn investment income, only to discover that the combination creates a larger tax obligation than expected. The Social Security benefit itself did not necessarily get cut, but the amount left after taxes can feel smaller, which matters when the monthly budget runs on tight margins. Retirement planning therefore requires looking at all income sources together instead of treating Social Security as an isolated paycheck.

4. Medicare Premiums and Other Withholdings Can Shrink the Deposit

Sometimes the benefit amount looks fine on paper, but the bank deposit still comes in lower. Medicare premiums can come out of Social Security payments, and higher-income beneficiaries may face additional Medicare Part B and Part D costs through income-related adjustments. A person who checks only the gross Social Security amount can therefore mistake a larger deduction for a reduction in the underlying retirement benefit.

Other situations can also affect payments. Social Security may withhold money to recover an overpayment, and benefits can stop in certain circumstances, including a conviction that results in imprisonment for more than 30 consecutive days. The agency also has special rules for certain types of benefits and situations, so a sudden change in a payment deserves investigation rather than a shrug and a second cup of coffee.

The Smart Move Is to Plan for the Check You Actually Keep

The biggest Social Security mistake involves planning around a headline number instead of the amount that actually reaches the household budget. A worker who expects to keep working should check the earnings test, while someone considering early retirement should compare the monthly benefit at different claiming ages. The Social Security Administration’s online tools can provide personalized estimates based on an individual’s earnings record and expected claiming age.

The same caution applies to anyone building a retirement plan around Social Security as the foundation of monthly income. The program did provide a 2.8% cost-of-living adjustment for 2026, but a COLA does not guarantee that every beneficiary will see the same increase in spendable cash after taxes, Medicare premiums, or other deductions. A realistic retirement plan should therefore include a cushion for changes in work income, taxes, health costs, and government program rules instead of assuming the benefit statement tells the whole story.

What Will Happen to Your Social Security Check in 2026?

The four reasons above share one important lesson: Social Security benefits do not always arrive in the form people expect. Working before full retirement age can trigger withholding, claiming early can permanently reduce the monthly benefit, taxes can reduce spendable income, and Medicare or other deductions can shrink the deposit that lands in the bank account. Checking the rules before making a major retirement decision can help prevent a very unpleasant financial plot twist later.

Which of these Social Security changes worries you most in 2026, and have you already adjusted your retirement plan because of it? Share your thoughts in the comments.

6 Retirement Gaps Women Can Measure Before Leaving the Workforce

July 27, 2026 by Brandon Marcus Leave a Comment

Retirement gaps can hide in plain sight. A career break here, a smaller paycheck there, a few years spent caring for family, and suddenly the retirement plan looks less like a neatly packed suitcase and more like one that refuses to zip.

That does not mean every woman faces the same financial shortfall, or that any single statistic predicts an individual outcome. But research highlighted in a recent MarketWatch article points to several patterns that can affect retirement security, including pay differences, caregiving interruptions, investment participation and access to financial planning.

1. Measure the Career-Break Gap Before It Becomes a Retirement Surprise

A pause from paid work can make perfect sense at the time. Raising children, caring for an aging parent, recovering from an injury or dealing with a family emergency can demand attention that no spreadsheet can schedule neatly. The financial impact, however, can stretch well beyond the years away from a paycheck because the missing earnings also can mean missed retirement contributions, employer matches and investment growth.

The MarketWatch article cited an American Retirement Association estimate that people who leave the workforce early to provide care can experience an average wage loss of 15%, while also noting that the effect varies from person to person. That figure does not predict what will happen to every caregiver, but it does show why a career interruption deserves a spot in a retirement calculation.

A practical check starts with a simple question: What did the career break cost in missed contributions? Add the retirement-plan deposits that never happened, any employer matching dollars that disappeared and the income difference after returning to work. The result may feel unpleasant, but an unpleasant number today gives someone far more options than an unpleasant surprise at 65.

2. Check the Paycheck Gap, Not Just the Job Title

Two people can hold similar jobs, work similar hours and still leave the workforce with very different retirement balances if their earnings and savings rates differ over time. A smaller paycheck can shrink retirement contributions even when both workers contribute the same percentage of income. The gap can widen further when raises, bonuses or promotions build on earlier salary differences.

MarketWatch cited Wealth Equity Index research reporting that women retire with 74% of the wealth men have, with the study linking the difference to factors including the gender pay gap and caregiving-related career breaks. That finding describes a broad research result, not a guaranteed outcome for every woman, and individual finances can look dramatically different.

The useful move involves measuring actual dollars rather than debating generalities. Compare current income, retirement contributions, employer matching and projected Social Security benefits with the lifestyle planned for retirement. A career that looks financially comfortable today may still leave a retirement gap if savings never keep pace with the income needed later.

3. Measure the Caregiving Cost Beyond the Family Calendar

Caregiving can create a financial ripple effect that lasts far longer than the original responsibility. Someone may reduce hours, turn down a promotion, take unpaid leave or leave a job entirely while caring for children, a spouse, a parent or another relative. The emotional value of that care cannot fit neatly into a calculator, but the financial tradeoffs deserve honest attention.

The first step involves listing every retirement-related account affected by the caregiving years. Include workplace plans, individual retirement accounts, employer matches and any lost opportunities to increase contributions. For a nonworking spouse, an eligible spousal IRA may offer a way to continue retirement saving based on household income, although contribution rules and eligibility requirements matter.

A family conversation can prevent caregiving from becoming a financial blind spot. Couples should discuss whose retirement accounts receive contributions, how unpaid work affects long-term security and what happens if the caregiver needs to return to the workforce later. Love may run the household, but love does not automatically fund a retirement account.

4. Check the Investment Gap Hiding Behind a Savings Balance

A retirement account can contain money and still face a growth problem. Keeping every dollar in cash may feel reassuring, especially when market headlines look like financial theater with worse costumes, but inflation can gradually reduce what that money buys. Investing also carries risk, so the goal does not involve blindly moving everything into stocks.

The more useful question asks whether the investment mix matches the time horizon, goals and tolerance for losses. The MarketWatch article quoted financial planner Veronica Taylor on the risk of avoiding investments entirely, particularly because inflation can erode purchasing power over time. Her point does not mean every investor needs the same portfolio, but it does highlight a risk that cautious savers sometimes overlook.

Reviewing the retirement account can reveal whether fear, confusion or simple procrastination has created a gap. Check the investment choices, fees, contribution rate and employer match, then consider whether the overall strategy fits the years remaining before retirement. A five-minute login can occasionally uncover a five-year problem.

5. Measure the Financial-Confidence Gap

Financial knowledge and financial confidence do not always arrive together. Someone can manage a household budget, pay bills on time and make smart money decisions while still feeling intimidated by retirement investing. That hesitation can delay important decisions for years.

The MarketWatch article cited Nationwide research finding that one in three women investors said a financial adviser had acted condescendingly while explaining recommendations. That kind of experience can make anyone less eager to ask questions, and it helps explain why access to advice and the quality of that advice both matter.

The fix starts with refusing to treat confusion as a personality trait. Write down questions before meeting with an adviser, ask for plain-language explanations and leave if the conversation feels patronizing or rushed. Financial planning does not belong exclusively to wealthy households, and a good plan should make someone feel more informed, not smaller.

6. Measure the Longevity and Income Gap Together

Retirement planning cannot stop at the day work ends. The plan also needs to answer how income will cover decades of housing, food, healthcare, taxes and the occasional expense that arrives with the timing of a cat knocking over a very expensive object.

Women do not all have the same health costs or retirement needs, so broad averages cannot predict an individual future. Still, the possibility of a longer retirement makes the size and durability of retirement income important factors to examine alongside savings balances.

Run the numbers using several retirement ages and spending levels. Look at Social Security claiming choices, pension income if available, investment withdrawals and emergency reserves, then test what happens if retirement arrives earlier than planned. The goal does not involve predicting the future perfectly, because nobody has that superpower. It involves building enough flexibility to handle a future that refuses to follow the script.

The Retirement Gap Is Easier to Fix Once It Has a Number

Retirement security rarely depends on one dramatic financial decision. More often, small gaps collect quietly through career interruptions, lower earnings, missed contributions, cautious investing or a lack of access to useful advice.

The best starting point involves measuring what exists today instead of waiting for perfect confidence. A retirement account statement, Social Security estimate, household budget and honest look at career history can reveal where the biggest gap sits. Once the gap has a number, it becomes a problem with possible solutions rather than a vague cloud hanging over the future.

Which retirement gap do you think women should measure first, and what financial step has helped you prepare for retirement? Share your thoughts in the comments.

How to Stress-Test a Retirement Plan After the Death of One Spouse

July 16, 2026 by Brandon Marcus Leave a Comment

The death of a spouse can turn a carefully built retirement plan into a puzzle with missing pieces. Stress-testing a retirement plan after that loss helps uncover where income, expenses, taxes, and investments need a fresh look before small cracks become bigger financial headaches.

A retirement strategy that worked beautifully for two people may not fit one person’s new reality. From Social Security decisions to insurance changes and investment withdrawals, every piece of the financial picture deserves a second look, especially when emotions and money decisions collide.

Start With a New Financial Snapshot After Loss

A retirement plan needs a complete checkup after the loss of a spouse because the household’s financial engine changes. The first step involves listing every source of income, every account, and every ongoing expense. A surviving spouse should gather documents such as retirement account statements, Social Security information, insurance policies, and monthly bills. This process may feel like sorting through a giant drawer full of tangled cords, but each document helps reconnect the financial system. A clear snapshot creates a starting point for smarter decisions.

Many people discover that some expenses shrink while others remain stubbornly unchanged. A smaller household might spend less on groceries or travel, but housing costs, healthcare expenses, and taxes can continue marching along like they own the place. A realistic budget should reflect the new household instead of simply cutting everything in sight. The goal involves finding the right balance between protecting savings and maintaining a comfortable lifestyle. A financial snapshot gives a surviving spouse the information needed to test different future scenarios.

After Losing a Spouse, Review:

Monthly income sources.
Social Security survivor benefits.
Retirement account withdrawal strategy.
Beneficiary designations.
Tax filing status.
Insurance coverage.
Estate planning documents.
Emergency savings.

Test Income Changes Before Making Big Decisions

Income changes often create the biggest pressure point after a spouse dies. Social Security benefits may change because the surviving spouse typically receives the higher of their own benefit or a survivor benefit, depending on eligibility and circumstances. Retirement accounts also require careful review because withdrawal strategies that supported two people may need adjustments for one. Testing different income scenarios can reveal whether the plan handles unexpected costs or market swings. This step helps prevent rushed decisions during a difficult transition.

A useful stress test asks practical questions instead of relying on optimism alone. What happens if investment returns disappoint for several years? What happens if healthcare costs rise faster than expected? What happens if the surviving spouse needs additional help later in life? Running these scenarios helps identify weak spots before they create trouble.

Many people also don’t consider their health. Healthcare costs often rise as people age, and a surviving spouse may eventually rely on only one Social Security benefit to help cover Medicare premiums, supplemental insurance, prescriptions, and long-term care expenses.

Review Taxes, Investments, and Protection Plans

Taxes can quietly reshape retirement income after one spouse passes away. A household may move from filing jointly to filing as a single taxpayer, which can change tax brackets and affect how much income remains after taxes. Retirement accounts, including traditional IRAs and other tax-deferred accounts, may require a new withdrawal strategy. Small adjustments can help avoid unnecessary tax surprises later. A review with a qualified tax professional can help create a more efficient approach.

Investments also deserve a fresh evaluation because the surviving spouse may have different needs, goals, and comfort levels. A portfolio built for two people may carry more risk than one person wants, or it may lack enough growth potential to support a longer retirement. Insurance coverage should receive attention too, including life insurance, long-term care coverage, and health-related policies. A good stress test checks whether the entire financial safety net still fits the new situation. Ignoring these details can leave expensive gaps hiding in plain sight.

Don’t Rush Major Financial Decisions

Many financial professionals recommend delaying major financial decisions—such as selling a home, making large investment changes, or claiming Social Security—until the initial emotional shock has passed, unless immediate action is necessary. Taking time to review all available options with trusted advisers can reduce the risk of decisions driven by grief rather than long-term financial goals.

Build a Retirement Plan That Fits the Next Chapter

The biggest mistake after losing a spouse involves treating the old retirement plan like a permanent blueprint. Life changed, so the plan needs room to change too. A surviving spouse may need to rethink housing choices, travel goals, charitable giving, or plans for helping family members. These choices do not mean abandoning the past, but they do require a fresh financial map. The next chapter deserves a strategy built around today’s reality.

A strong retirement stress test combines numbers with personal priorities. Money supports daily life, but it also supports independence, comfort, and peace of mind. Reviewing the plan regularly helps catch changes in spending, health needs, and financial goals. The process may feel uncomfortable at first, but it creates confidence through preparation. A thoughtful review can turn uncertainty into a clearer path forward.

A Fresh Financial Map Can Protect the Years Ahead

A retirement plan after the death of a spouse needs more than simple adjustments because the entire financial landscape has shifted. Stress-testing income, expenses, investments, taxes, and insurance creates a clearer view of what works and what needs attention. A surviving spouse can make stronger decisions by examining the plan instead of guessing about the future. The process creates a practical roadmap during a time filled with emotional challenges. Small reviews today can prevent major surprises later.

The best retirement strategies evolve as life changes, and losing a spouse represents one of the biggest transitions anyone can face. A careful review helps protect savings while keeping important goals within reach. Retirement planning does not end after a major loss; it enters a new phase that requires flexibility and care. Taking time to revisit the details can provide valuable financial confidence. A well-tested plan gives the future a steadier foundation.

What steps would you recommend for someone rebuilding a retirement plan after losing a spouse? Give us your thoughts and experiences in the comments.

The Long-Term Care Planning Question Advisors Should Ask Before Retirement: “Who Pays for Year Five?”

July 14, 2026 by Brandon Marcus Leave a Comment

According to the U.S. Department of Health and Human Services, about 70% of Americans who reach age 65 will need some form of long-term care during their lifetime. While many people budget for a few months of assistance, the financial challenge often grows when care extends for several years.

Retirement planning often focuses on the exciting parts: travel plans, hobbies, a slower morning routine, and finally having time for projects around the house. Yet one question can change the entire conversation: “Who pays for year five?” Long-term care costs can stretch far beyond the first few months, and a solid retirement plan needs to look past the beginning of a care journey.

Many people prepare for the possibility of needing help someday, but they picture a short period of assistance rather than a multi-year expense. The tricky part is that long-term care rarely follows a neat calendar. A thoughtful plan considers what happens after savings cover the early years and life keeps moving forward.

The Fifth Year Often Reveals the Real Strength of a Retirement Plan

The first years of long-term care can create a false sense of security because families often focus on immediate needs rather than the years that follow. A retirement plan needs to answer what happens when care continues longer than expected. The fifth year matters because it tests whether a person’s financial strategy can handle a longer road.

A person may have enough savings to cover home care or assisted living for a while, but extended care can create pressure on investments and family finances. Advisors often help clients examine income sources, insurance options, and personal resources before retirement arrives. The goal involves creating a plan that does not rely on hope as the main strategy.

Long-term care planning also requires honest family conversations that many people delay because the topic feels uncomfortable. Talking about future care needs before a crisis gives families more choices and fewer rushed decisions. A simple question about year five can reveal gaps that a basic retirement calculation might miss.

“While costs remain high, they are only one part of the equation. Families are also weighing quality, access, timing, and how to pay for care over time,” said Samir Shah, CEO of CareScout.

What Long-Term Care Can Cost (2025 National Medians)

Care Type	Median Annual Cost
Home caregiver	$80,080
Assisted living	$74,400
Nursing home (semi-private)	$114,975
Nursing home (private)	$129,575

Source: CareScout 2025 Cost of Care Survey

Retirement Savings Need a Backup Plan Beyond the First Few Years

Many retirees build careful budgets for everyday expenses, but long-term care can introduce costs that look completely different from normal retirement spending. A monthly budget for groceries, utilities, and hobbies does not automatically account for professional caregiving support. Care planning deserves its own section in the retirement conversation.

Financial advisors can help people compare different ways to handle future care expenses, including long-term care insurance, personal savings, retirement income, and family support. Each option comes with trade-offs, and the right approach depends on personal goals and financial circumstances. A plan that works for one household may not fit another household at all.

One of the biggest retirement planning mistakes is assuming Medicare pays for long-term custodial care. Medicare generally covers short-term skilled nursing or rehabilitation following a qualifying hospital stay, but it typically does not pay for ongoing assistance with activities such as bathing, dressing, eating, or supervision over an extended period.

Families Need More Than a Financial Number on a Spreadsheet

Imagine a couple who retires with $1 million in savings. Paying approximately $75,000 a year for assisted living may seem manageable at first. But if care extends into a fifth year—or if both spouses eventually require care—that expense can easily exceed several hundred thousand dollars, fundamentally changing the family’s retirement picture.

Long-term care planning involves more than calculating dollars because care decisions affect relationships, routines, and living arrangements. A spreadsheet cannot fully show the emotional weight of asking a spouse, child, or relative to step into a caregiver role. Good planning considers both money and the people involved.

Real-life situations often look different from the simple examples found in retirement brochures. One spouse may need care while the other still wants to travel or maintain independence. Adult children may live far away, have demanding jobs, or face their own family responsibilities.

A strong plan creates a roadmap before a stressful moment arrives. It identifies possible care preferences, important documents, and financial resources that can support future choices. That preparation gives families more confidence when circumstances change.

How People Pay for Long-Term Care

Personal savings
Retirement income
Long-term care insurance
Hybrid life/LTC policies
Home equity
Medicaid (after meeting eligibility requirements)

A Simple Retirement Question Can Protect Future Choices

The question “Who pays for year five?” does not predict the future, but it encourages better preparation. It pushes retirement conversations beyond the first stage of care and toward the full picture. That shift can help people build plans with fewer weak spots.

Retirement planning works best when it includes realistic conversations about aging, health changes, and personal priorities. Advisors who ask detailed questions can help clients spot problems before those problems become emergencies. A complete plan considers the possibility of years of care, not just the first bill.

The strongest retirement strategies leave room for flexibility because life rarely follows a perfect script. People can review coverage, update documents, and adjust savings goals as circumstances change. A small planning conversation today can protect important choices tomorrow.

The Question That Keeps Retirement Plans Standing Strong

The phrase “Who pays for year five?” works like a flashlight in a dark corner of retirement planning. It shines attention on an issue many people prefer to postpone, while creating an opportunity to prepare with clarity. Long-term care planning does not need to feel overwhelming when people approach it step by step.

A retirement plan should support more than financial comfort during the early years. It should also provide a strategy for unexpected challenges that may appear later. Asking better questions before retirement can help families protect savings, preserve independence, and make decisions with less pressure.

The best time to discuss long-term care happens before a family faces a crisis. A thoughtful conversation with a financial advisor, loved ones, and trusted professionals can help create a stronger foundation. The year five question may seem simple, but it can uncover some of the most important retirement planning decisions.

If your retirement plan had to pay for five years of care starting tomorrow, would you know where the money would come from? It’s a question worth asking now—before you ever need the answer.

7 OregonSaves Rules Every New Oregon Employer Should Know Before the July 31 Deadline

July 7, 2026 by Brandon Marcus Leave a Comment

7 OregonSaves Rules New Employers Should Know Before July 31 — New Oregon employers should review OregonSaves requirements before July 31 to determine whether they need to register or certify an exemption. Staying ahead of the deadline can help businesses avoid penalties and keep payroll running smoothly – Shutterstock

OregonSaves became the nation’s first state-facilitated retirement savings program in 2017 and now has more than 120,000 participating workers and billions of dollars in retirement assets under management, giving employees without workplace retirement plans an easy way to save through payroll deductions. For many new Oregon employers, July 31 marks a key date because it could determine whether the business stays compliant with Oregon’s retirement savings law or risks financial penalties.

The good news is that OregonSaves keeps the employer’s role fairly simple. The program handles the retirement accounts while employers complete a handful of required administrative tasks.

“OregonSaves was designed to make retirement saving simple for workers while keeping employer responsibilities as limited as possible,” the program explains, noting that employers serve only as payroll facilitators and have no fiduciary responsibility for employee investments. Knowing what those responsibilities look like before July 31 can make the process much smoother and eliminate last-minute surprises.

1. New Businesses Have A July 31 Registration Deadline

Not every employer shares the same deadline, but many newly established Oregon businesses do. If a business starts after March 31 of one year and does not offer a qualified workplace retirement plan, it generally must register with OregonSaves by July 31 of the following calendar year. Businesses that launch between January 1 and March 31 face an even earlier requirement because they must register by July 31 of that same year.

Waiting until the final week rarely helps anyone. OregonSaves notes that registration only takes a few minutes in many cases, especially for employers with a small workforce. Having a Federal Employer Identification Number and the OregonSaves Access Code ready before sitting down at the computer turns the process into a quick task instead of an afternoon project.

2. A Qualified Retirement Plan Changes The Picture

Some employers assume every Oregon business must enroll in OregonSaves, but that is not the case. Businesses that already offer a qualified employer-sponsored retirement plan do not register for the program. Instead, they certify an exemption before the applicable deadline.

Qualified plans include traditional 401(k) plans, SIMPLE IRAs, SEP IRAs, governmental 457(b) plans, and several other IRS-recognized retirement plans. Employers that already sponsor one of these plans generally certify an exemption rather than register with OregonSaves.

The same rule applies to businesses that currently have no W-2 employees. Rather than ignoring the notices, employers should certify the exemption to avoid appearing noncompliant. That small step keeps records accurate and prevents unnecessary headaches later if the business grows or hires employees.

3. Registration Is Only The Beginning

Checking the registration box does not finish the job. Employers also need to submit payroll contributions every pay period for employees who remain enrolled and keep employee records up to date. That includes adding new hires, updating contribution information when needed, and marking former employees as terminated. (OregonSaves)

Think of OregonSaves as another routine payroll responsibility instead of a separate project. Once the initial setup wraps up, maintaining the account becomes part of the normal payroll rhythm. OregonSaves also integrates with many payroll providers, making the ongoing work even easier for participating employers. (OregonSaves)

4. Employees Make The Participation Decision

One common misconception pops up again and again. Some employers believe they can skip registration if employees already say they do not want to participate. OregonSaves says that is not how the process works.

Employers still register the business and enroll eligible employees. After enrollment, employees receive notice and have 30 days to opt out if they choose. Anyone who stays enrolled becomes an active participant, and the employer then sends payroll contributions during each payroll cycle. The choice belongs to the employee, but the enrollment responsibility belongs to the employer.

Many employers assume they need employee permission before enrolling workers. They don’t. OregonSaves requires employers to submit eligible employees, after which the program notifies workers and gives them a 30-day window to opt out or change their contribution rate.

5. The Employer’s Role Stays Surprisingly Limited

Many small business owners hear the words “retirement program” and immediately picture investment meetings, financial advice, and stacks of complicated paperwork. OregonSaves intentionally avoids placing those responsibilities on employers. The program states that employers have no fiduciary responsibility and do not pay employer fees to participate.

Employers also should not provide investment advice to workers. When employees ask questions about investments or retirement choices, OregonSaves directs them to the program’s resources or encourages them to speak with their own financial advisor. That clear division of responsibilities helps employers stay focused on running the business instead of managing retirement accounts.

6. Missing The Deadline Can Become Expensive

Ignoring OregonSaves notices does not simply make them disappear. Oregon law requires employers without a qualified retirement plan to administer the program, and failing to comply can trigger enforcement.

Noncompliant employers may face investigation by the Oregon Bureau of Labor and Industries along with a civil penalty of $100 per employee, up to a maximum of $5,000. Those numbers can add up much faster than many owners expect, especially when compared with the relatively short amount of time it usually takes to register.

Penalties are based on the number of eligible employees reflected in state employment records. While the maximum annual penalty is $5,000, resolving the issue before enforcement begins is far easier—and much less expensive—than waiting until after a compliance referral.

7. Help Is Available Before Problems Develop

Business owners do not need to figure everything out alone. OregonSaves offers registration guides, webinars, videos, and employer support to answer questions before small issues become bigger ones. Employers who cannot locate their Access Code can also request it rather than delaying compliance.

That support matters because every business starts somewhere. Whether the company employs two people or two hundred, using the available resources can make registration feel much less intimidating and help payroll continue without unnecessary interruptions. A little preparation today often saves plenty of scrambling tomorrow.

Keep July 31 On The Calendar, Not In The Rearview Mirror

Before July 31, make sure you’ve completed these steps:

Verify whether your business qualifies for an exemption.
Locate your OregonSaves Access Code.
Gather your Federal Employer Identification Number (EIN).
Confirm employee payroll information is current.
Decide who will manage payroll submissions.
Register or certify your exemption before the deadline.

For new Oregon employers, July 31 deserves a bright circle on the calendar. Registering with OregonSaves when required, certifying an exemption when eligible, and handling payroll contributions correctly helps businesses stay compliant while giving employees access to a workplace retirement savings option.

Most importantly, OregonSaves keeps the employer’s responsibilities straightforward. A little planning, a few minutes of setup, and consistent payroll administration can prevent costly penalties and allow business owners to spend more time growing the company instead of sorting through compliance issues.

What steps has your business taken to stay on top of OregonSaves requirements, or do you have questions before the July 31 deadline? Share your thoughts in the comments.

Saver’s Match Replaces Saver’s Credit in 2027—Eligible Workers Get a 50% Federal Match on the First $2,000

July 4, 2026 by Brandon Marcus Leave a Comment

Retirement savings will look a little different starting in 2027, and for many workers, that change could bring a welcome boost. The long-running Saver’s Credit will step aside, making room for the new Saver’s Match, which sends a federal matching contribution directly into eligible retirement accounts instead of offering a tax credit.

That shift may sound like a small technical update, but it changes how eligible workers receive the benefit. Instead of hoping a tax credit reduces a tax bill, qualifying savers can receive up to a $1,000 federal match when they contribute the first $2,000 to a retirement account. For people trying to stretch every paycheck while still preparing for the future, that creates a much more tangible reward. What makes the Saver’s Match different from the Saver’s Credit?

Who Qualifies For The New Federal Match?

Eligibility still depends on income and a few other basic requirements. According to the Congressional Research Service summary highlighted by the Plan Sponsor Council of America, workers with modified adjusted gross incomes below $20,500 for single filers or $41,000 for married couples filing jointly qualify for the full 50% match, while the benefit gradually phases out as income increases. The phaseout ends at $35,500 for single filers and $71,000 for married couples filing jointly.

The program also keeps several familiar eligibility rules from the Saver’s Credit. Workers must generally be at least 18 years old, cannot qualify as someone else’s dependent, and cannot attend school as a full-time student. Those rules help focus the benefit on working adults who actively save for retirement through an eligible workplace plan or traditional IRA.

Why Many Retirement Experts Expect This Change To Help More People

Imagine two workers each contribute $2,000 to retirement. Under the old credit, one worker might receive the full benefit while another with very little tax liability receives only part of it. That uneven outcome often frustrated the very people the credit aimed to encourage.

The Saver’s Match tackles that problem by separating the benefit from the amount of federal income tax someone owes. A Congressional Research Service report noted that this approach will likely reach and benefit more retirement savers because the match no longer depends on tax liability. Instead, eligible workers see the federal government contribute directly to their retirement savings, making the incentive much easier to appreciate.

A Few Details Savers Should Keep In Mind Before 2027

One important point often surprises people. The federal government does not hand workers a check or increase a tax refund through the Saver’s Match. Instead, the matching contribution goes directly into the eligible retirement account, where it remains focused on its intended purpose of building long-term retirement savings.

Another detail deserves attention. The match applies only to the first $2,000 in eligible retirement contributions, so contributing more than that will not increase the federal match beyond $1,000. Workers also need to meet the income and eligibility rules each year, which means checking current IRS guidance during tax season remains a smart habit as the program officially launches.

A Stronger Reason To Keep Retirement Savings On The Priority List

Saving for retirement rarely feels exciting when grocery bills, rent, and everyday expenses compete for every dollar. Even so, programs like the Saver’s Match create a meaningful incentive by rewarding eligible workers who manage to set aside money for the future. Every contribution could work a little harder once the federal match arrives in 2027.

The change also simplifies the value of the benefit. Instead of sorting through tax forms to figure out whether a credit actually reduces a tax bill, eligible savers can focus on contributing to their retirement account and potentially receiving a matching federal contribution worth up to $1,000. For many households, that makes retirement planning feel a bit more rewarding and a little easier to appreciate.

What do you think about replacing the Saver’s Credit with the new Saver’s Match? Will this change encourage more people to save for retirement? Share your thoughts in the comments!

Unused 529 Money Can Roll Over to a Roth IRA—But Only If the Account Is 15 Years Old and You Spread the Transfer Over Five Years

July 3, 2026 by Brandon Marcus Leave a Comment

A 529 plan rarely sits still forever anymore. New rules open a surprising path that moves unused education savings into a Roth IRA. This shift links college savings with retirement in a single strategy. Strict timing and transfer limits shape how and when money can move.

This opportunity does not work like a simple account swap. Families must meet age requirements, follow annual caps, and respect a multi-year transfer structure. The rules reward long-term planning over quick decisions. Missing details can block access to the benefit entirely.

How The 529 To Roth IRA Rollover Actually Works

A new rule allows unused 529 plan funds to move into a Roth IRA for the same beneficiary under strict conditions. This transfer creates a tax-advantaged path that keeps savings within the family’s financial system instead of triggering penalties or taxes elsewhere in education accounts. The Roth IRA receives funds without new taxes or penalties when all requirements align. Annual Roth IRA contribution limits still control how much can move each year under this rule. The structure prevents large transfers and pushes steady movement over time rather than sudden shifts.

Eligibility Rules That Decide Who Can Use The Rollover

A 529 account must stay open for at least 15 years before any rollover begins. The beneficiary on the 529 plan must match the Roth IRA owner receiving the funds. Contributions made within the last five years cannot move into the Roth IRA. Annual Roth IRA limits still apply to each year of transfer activity. These rules ensure the rollover supports long-term saving habits.

Why The Five-Year Transfer Rule Changes Everything

The rollover does not allow a single lump-sum transfer into a Roth IRA. Annual Roth IRA limits control how much can move each year. Eligible funds must spread across a five-year window to complete the process. This turns the rollover into a gradual conversion rather than a quick shift. Timing mistakes can delay access to the full benefit.

Common Misconceptions And Planning Mistakes

Many assume unused 529 funds move freely into retirement accounts without limits. The rules impose strict age, timing, and contribution requirements. Some overlook the restriction on recent contributions and face delays. Others misjudge annual Roth IRA caps and expect faster transfers. Careful planning keeps the rollover on track.

What This Rollover Really Changes For Long-Term Savers

This rollover links education savings and retirement planning through a long-term path. The 15-year rule filters out short-term accounts and rewards staying power. The five-year spread aligns transfers with Roth IRA contribution structure. Families gain flexibility only when they follow all conditions. Unused education funds can become meaningful retirement support over time.

A 529 plan no longer ends its usefulness when education expenses slow down. Instead, this rollover option creates a second life for leftover funds, but only under disciplined conditions. The rules reward patience, precision, and long-term thinking rather than quick financial moves. Anyone who maps out the timeline early gains a clearer path to turning unused savings into retirement potential.

What stands out most to you about this rollover strategy: the strict timing rules or the long runway for moving funds?

The Social Security Number Gives the Clearest Starting Point

Why the Number Changes So Much From One Retiree to Another

Age 70 Can Actually Be a Significant Retirement Milestone

The Better Question Is Whether the Income Covers the Lifestyle

The Retirement Number Worth Watching Is Your Own

You May Also Like…

1. Investment Expense Ratios

2. Administrative Plan Fees

3. Individual Service Charges

4. High-Cost Advisory or Managed Account Fees

5. Fees That Follow Rollovers or New Accounts

Small Numbers Can Cast Long Shadows

You May Also Like…

The Bigger Catch-Up Opportunity Arrives at the Right Time

This Rule Helps Late Savers and Careful Planners

IRAs Still Matter Alongside Workplace Plans

The Final Working Years Can Become a Powerful Savings Window

You May Also Like…

1. Working Too Much Before Full Retirement Age Can Reduce Your Check

2. Claiming Early Permanently Shrinks the Benefit

3. Taxes Can Take a Bite Out of Social Security Income

4. Medicare Premiums and Other Withholdings Can Shrink the Deposit

The Smart Move Is to Plan for the Check You Actually Keep

What Will Happen to Your Social Security Check in 2026?

You May Also Like…

1. Measure the Career-Break Gap Before It Becomes a Retirement Surprise

2. Check the Paycheck Gap, Not Just the Job Title

3. Measure the Caregiving Cost Beyond the Family Calendar

4. Check the Investment Gap Hiding Behind a Savings Balance

5. Measure the Financial-Confidence Gap

6. Measure the Longevity and Income Gap Together

The Retirement Gap Is Easier to Fix Once It Has a Number

You May Also Like…

Start With a New Financial Snapshot After Loss

After Losing a Spouse, Review:

Test Income Changes Before Making Big Decisions

Review Taxes, Investments, and Protection Plans

Don’t Rush Major Financial Decisions

Build a Retirement Plan That Fits the Next Chapter

A Fresh Financial Map Can Protect the Years Ahead

You May Also Like…

The Fifth Year Often Reveals the Real Strength of a Retirement Plan

What Long-Term Care Can Cost (2025 National Medians)

Retirement Savings Need a Backup Plan Beyond the First Few Years

Families Need More Than a Financial Number on a Spreadsheet

How People Pay for Long-Term Care

A Simple Retirement Question Can Protect Future Choices

The Question That Keeps Retirement Plans Standing Strong

You May Also Like…

1. New Businesses Have A July 31 Registration Deadline

2. A Qualified Retirement Plan Changes The Picture

3. Registration Is Only The Beginning

4. Employees Make The Participation Decision

5. The Employer’s Role Stays Surprisingly Limited

6. Missing The Deadline Can Become Expensive

7. Help Is Available Before Problems Develop

Keep July 31 On The Calendar, Not In The Rearview Mirror

You May Also Like…

Who Qualifies For The New Federal Match?

Why Many Retirement Experts Expect This Change To Help More People

A Few Details Savers Should Keep In Mind Before 2027

A Stronger Reason To Keep Retirement Savings On The Priority List

You May Also Like…

How The 529 To Roth IRA Rollover Actually Works

Eligibility Rules That Decide Who Can Use The Rollover

Why The Five-Year Transfer Rule Changes Everything

Common Misconceptions And Planning Mistakes

What This Rollover Really Changes For Long-Term Savers

You May Also Like…