Author: Money Mechanics

Key Takeaways On average, American workers say that they would need an additional $70,000 of household income each year to feel financially stable, according to a report by insurance company Aflac.Households earning under $50,000 per year would like an additional $48,834, on average, in annual income, while those earning over $100,000 would like an additional $86,518.Many workers report high levels of anxiety about health care costs, and almost half (44%) couldn’t cover a $1,000 health care expense out of pocket. Get personalized, AI-powered answers built on 27+ years of trusted expertise. Many Americans don’t feel financially secure. In some ways,…

(Image credit: Getty Images)One of retirement’s biggest psychological challenges is replacing a predictable paycheck with income drawn from investments that rise and fall.According to research from the Stanford Center on Longevity, retirees generally prefer predictable income to flexible lump sums.The usual answers for income certainty — such as bonds, CDs and annuities —come with tradeoffs. From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues CLICK FOR FREE ISSUE Sign up for Kiplinger’s Free Newsletters Profit and prosper with the best of expert advice…

(Image credit: Getty Images)Annuities are a popular component of many retirement strategies, particularly with increasing U.S. life expectancy. But how safe are they?Annuities have come through for Americans for many years. They’re generally low-risk but not entirely risk-free. Risk depends on the type of annuity you choose and which issuing company you select.Can you lose money in an annuity?An annuity is a contract between an individual and an insurance company. You, the owner, can buy an annuity with either periodic payments or a lump sum. They come in two basic types: fixed and variable. From just $107.88 $24.99 for Kiplinger…

(Image credit: Getty Images)Question: At 54, we’re young grandparents. My wife wants to start a college fund for our grandson, but I think we have to focus on funding our retirement. We’ve already saved $1.8 million. Who is right?Answer: As of 2022, the most recent year for which data are available, the average retirement savings balance among 54-year-olds was about $313,000, per the Federal Reserve. If you’re 54 years old with $1.8 million saved for retirement, you’re clearly in a strong position compared to the typical person your age.Just because you’ve amassed a $1.8 million fortune by age 54 doesn’t…

Key Takeaways According to Federal Reserve data, just 57% of Americans in their mid-50s to mid-60s have a retirement account, a participation rate that is near a 30-year low.More recent data from Empower placed the median saved for 50-somethings at $253,454 and the median saved for 60-somethings at $186,902.Retirement readiness varies widely at this stage, shaped by housing wealth, access to workplace plans, and exposure to market swings. Get personalized, AI-powered answers built on 27+ years of trusted expertise. How Many Americans Ages 55–64 Have Any Retirement Savings at All The Federal Reserve’s Survey of Consumer Finances shows that 57%…

(Image credit: Getty Images)Many families with children consider having one parent stay home. Sometimes the decision is driven by lifestyle preferences, but rising child care costs are also pushing more families to rethink whether two incomes always make financial sense.The ability to live on a single income varies widely depending on where a family lives. Housing, taxes and everyday expenses differ significantly from state to state, which can make living on one income easier to manage in some places than others.In lower-cost states, a single salary may be enough to support a parent staying home with a child. In higher…

Key Takeaways Rolling over a 401(k) into an IRA provides more investment options and control but limits annual contributions.Transferring funds to a new employer’s 401(k) can maximize employer match benefits and consolidate accounts.Leaving funds in an old 401(k) keeps investments growing but prevents new contributions and employer matches. Get personalized, AI-powered answers built on 27+ years of trusted expertise. When you leave a job, it’s important to decide what to do with your 401(k), because each option affects your taxes, fees, and long-term savings. One Reddit user shared their experience when changing jobs: “My 401(k) is with Principal. I’m not…

High prices and economic uncertainty kept demand muted; now, rates are already rising again and global tensions could add to homebuyer hesitation.  The median monthly housing payment was $2,591 during the four weeks ending March 1, down 2.8% year over year.  Payments are falling largely thanks to the weekly average mortgage rate dropping to 5.98% last week, down from 6.76% a year earlier and the first time it has dipped below 6% in three and a half years. (The daily average mortgage has risen from 5.99% last week to 6.07% on March 4.) On the other side of the housing…

Key Takeaways The average American aged 45 to 54 spent $6,748 on health insurance. This average masks huge variation: the top 10% of working families spend more than $14,800 annually, often due to chronic conditions or high-deductible plans that require thousands before coverage kicks in.When you add insurance premiums, deductibles, co-pays, and prescriptions, typical spending jumps to $3,000-$6,000 annually. Americans ages 45-54 spent an average of $6,748 on health care in 2024—up from $6,338 the year before, according to the Bureau of Labor Statistics Consumer Expenditure Survey. That covers insurance premiums, doctor visits, prescriptions, and medical supplies. But the average…

Key Takeaways Most Americans ages 35–44 have retirement accounts, but the Fed’s latest survey shows the median balance for this age group has declined.Among those with a retirement account, the median balance is $45,000 for those in their late 30s and early 40s.This time in life often brings higher pay but rising costs, making this period a challenging but crucial window to build meaningful savings. How Many People Ages 35-44 Have Any Retirement Savings? It’s no surprise that age impacts a household’s income, wealth, and ability to save for retirement. Families tend to see earnings and assets increase through midlife,…