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    Retirement Gold Rush: Your Benefits Now That More People Are Turning 65 in 2024 Than Ever Before

    By Adam Palasciano,

    15 days ago
    Iuliia Zavalishina /

    Retireme nt should be a time of rest, relaxation and enjoyment. Now, more Americans than ever before are about to enter this period of their lives.

    Check Out: 10 Things Boomers Should Always Buy in Retire ment

    Read Next: 4 Genius Things All Wealthy Peo ple Do With Their Money

    CNN reported that more Americans are turning 65 in 2024 than ever before. An average of 11,200 Americans per day will turn 65 this year, and that figure is slated to increase further over the next few years.

    This has sparked a “retirement gold rush.” More retirees than will begin collecting payments and financial institutions are jumping in on the action.

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    401(k)s Are Replacing Pensions

    Retirement-saving vehicles are necessary to ensure financial security after you call it quits at work.

    Traditionally, many workers qualified for pensions. With a traditional pension plan, the burden of saving and investing for retirement falls on the employer, not on the employee. Pensions typically offer employees payments for life. The size of the monthly payment depends on how long the employee worked for the company and what the employee’s salary is. Unfortunately, pensions are becoming more uncommon these days.

    Over the past 40 years or so, pension plans have been largely replaced by 401(k) retirement plans. The Investment Company Institute highlighted that total US retirement assets totaled a whopping $38.4 trillion as of December 31, 2023.

    The key difference between pensions and 401(k)s? Employers fund pensions while employees are largely shouldered with the responsibility of funding their 401(k)s throughout their working careers. For those retiring now who don’t have a pension, many are relying on a combination of their 401(k) plan and monthly Social Security benefits.

    The Secure 2.0 Act Is Paving The Way For Retirement Plan Changes

    While more older Americans are retiring, retirement plans are changing.

    With the recent passage of the Secure 2.0 Act , changes in federal law made it possible for employers to offer lifetime annuity products in their 401(k) plans. Annuities are financial products offered by insurance companies that, once paid into, offer monthly payments during retirement.

    Many large financial companies like Nationwide and BlackRock have begun offering different types of annuity products to fill the financial gap and provide employees with more options as they plan for retirement.

    Learn More: Retirement 2024: These Are the 7 Worst Places To Retire in South Carolina

    However, retirement annuity options are currently only available to employees at companies that offer them via workplace savings plans. There are also some downsides to consider when selecting an annuity option:

    • Annuities generally don’t allow payments to pass on to children without incurring an additional cost.
    • If you elect to pass the benefit on to your spouse after your passing, the monthly paychecks you get may decrease.
    • Annuities typically don’t offer inflation-adjusted payments, which means the value of your monthly payments will steadily decrease as you age.

    If you’re about to reach retirement age, it’s crucial to carefully review your retirement options . Take advantage of whatever financial products you’re eligible for to ensure a safe and secure future for years to come.

    This article originally appeared on : Retirement Gold Rush: Your Benefits Now That More People Are Turning 65 in 2024 Than Ever Before

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