Daunted by all the retirement decisions? Some employers bring retirement advice to the workplace. Several years ago, Barbara Linnehan-Smith, a teacher in Portland, Maine, began attending retirement seminars offered through her union to learn about her pension formula, Social Security eligibility and retiree health insurance. Although Linnehan-Smith, 61, has no immediate plans to retire, "it was really important to get a feel for the whole process," she says.
Your company 401(k) plan may also be a source of help. Increasingly, plans offer online tools and one-on-one phone conversations with financial planners to deal with everything from Social Security strategies to retirement spending to asset allocation. “It’s a concierge service to help you navigate the process,” says Rob Austin, director of retirement research at Aon Hewitt, a human resources firm.
Some will even set up a retirement paycheck for you. Almost half of employers in a recent Aon survey allow 401(k) participants to choose an automatic payment from the plan in retirement, and 30% offer a professionally managed account with a drawdown feature. Another 9% offer a managed payout fund, which uses a withdrawal strategy designed to produce lifelong paychecks (but without the guarantee of an annuity).
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
If you’re deciding between leaving your money in the plan and rolling it over, you’ll have to weigh the costs, services and convenience of your 401(k) against the flexibility and wider range of investment choices in an IRA. Keep in mind that large plans have access to institutional pricing, which means lower fees. “If your 401(k) happens to be reasonably priced and gets the job done, by all means, keep the money there,” says Michael Kitces, a partner and director of wealth management at Pinnacle Advisory Group.
-
What Is a Qualified Charitable Distribution (QCD)?Tax Breaks A QCD can lower your tax bill while meeting your charitable giving goals in retirement. Here’s how.
-
Embracing Generative AI for Financial SuccessGenerative AI has the potential to reshape how we approach learning about and managing our personal finances.
-
457 Plan Contribution Limits for 2025Retirement plans There are higher 457 plan contribution limits for state and local government workers in 2025 than in 2024.
-
Medicare Basics: 11 Things You Need to KnowMedicare There's Medicare Part A, Part B, Part D, Medigap plans, Medicare Advantage plans and so on. We sort out the confusion about signing up for Medicare — and much more.
-
The Seven Worst Assets to Leave Your Kids or Grandkidsinheritance Leaving these assets to your loved ones may be more trouble than it’s worth. Here's how to avoid adding to their grief after you're gone.
-
SEP IRA Contribution Limits for 2024 and 2025SEP IRA A good option for small business owners, SEP IRAs allow individual annual contributions of as much as $69,000 in 2024 and $70,000 in 2025..
-
Roth IRA Contribution Limits for 2024 and 2025Roth IRAs Roth IRA contribution limits have gone up. Here's what you need to know.
-
SIMPLE IRA Contribution Limits for 2024 and 2025simple IRA The SIMPLE IRA contribution limit increased by $500 for 2025. Workers at small businesses can contribute up to $16,500 or $20,000 if 50 or over and $21,750 if 60-63.
-
457 Contribution Limits for 2024
retirement plans State and local government workers can contribute more to their 457 plans in 2024 than in 2023.
-
Roth 401(k) Contribution Limits for 2025retirement plans The Roth 401(k) contribution limit for 2024 is increasing, and workers who are 50 and older can save even more.
