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The Dirty Dozen Retirement Savings and Investment Mistakes

I regularly review commentary, data, and analyses of respected financial advisors concerning retirement savings and investing. While they don't all agree on everything, there exists a consensus around the most common retirement savings and investment mistakes. Here are the top "dirty dozen" mistakes (as I see them).

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Lessons Learned the Hard Way When This U.S. City Replaced Its Retirement Program With One That Severely Cut Benefits

For over fifty years, Palm Beach, California maintained a generous traditional defined benefit (DB) pension plan for its employees that based benefits on a percentage of the employee's final average pay times years of service. As employees accumulated service and their pay increased over the years, their pension benefits grew exponentially. Upon retirement, the benefit was paid in the form of a life annuity, thereby guaranteeing that participants would never run out of money.

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Retirement Hopes, Plans, and Realities Across Three Generations

For the past 20 years, Transamerica Center for Retirement Studies (TCRS) has surveyed U.S. workers about their attitudes towards retirement. TCRS's most recent survey (Survey), conducted by the Harris Poll between August 9 and October 28, 2017 via an online survey of 6,372 representative workers across the U.S., reveals both similarities and differences in retirement views across three generations: Millennials (born 1979-2000), Generation Xers (born 1965-1978), and Baby Boomers (born 1946-1964). [See "Wishful Thinking or Within Reach? 18th Annual Transamerica Retirement Survey of Workers," December 2017, authored by Catherine Collinson, 117 pages].

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Follow These Rules to Minimize Your Medicare Premiums

If you collect Social Security retirement benefits before age 65, you will automatically be enrolled in Medicare when you turn age 65. However, more and more Americans are delaying the start of their Social Security retirement benefits because the payment becomes increasingly larger the longer one waits (up until age 70). In the course, many Americans are missing critical Medicare enrollment deadlines and, as a result, paying higher Medicare premiums FOR LIFE.

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Student Loan Debt Threatens Retirement Security of Many Older Americans

The Government Accountability Office (GAO)--the audit, evaluation, and investigative arm of Congress--recently released a report showing that a growing number of older Americans are saddled by student loan debt. Indeed, the rate of increase in older borrowers and the amount of their debt has rapidly surpassed that of younger student-loan borrowers. Further, borrowers age 50 and older have much higher rates of default on federal student loans than younger borrowers, loans that generally cannot be discharged in bankruptcy.

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I'm From the Government, and I'm Here to Help You

If you are looking for your 401(k) check, this may actually be true. The Pension Benefit Guaranty Corporation, a federal agency, has long had a "missing participant program" which helps find pension plan participants who may have left their employers years earlier and are now owed pension benefits, but cannot be found. The program currently covers only terminated single-employer defined benefit (DB) pension plans (plans that pay benefits based on a formula defined in the plan and in the form of an annuity). The program does not cover defined contribution (DC) plans (plans that pay only the participant's account balance, e.g., a 401(k) plan).

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Department of Labor Stepping Up Audits of Pension Plans

In 2016, the Department of Labor (DOL) announced that it was stepping up efforts to ensure that terminated vested participants receive the pension benefits they are due under the terms of their plan. The DOL's primary targets? Large Fortune 500 defined benefit pension plans whose Form 5500 filings show high numbers of participants eligible for benefits, but not receiving them.

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2017 Global Retirement Study Reveals That U.S. Retirement System Is Only Average As Compared To Other Countries

For the ninth year in a row, Mercer (a global consulting firm with expertise in pensions and investments) and the Australian Centre for Financial Studies have collaborated on research studying the retirement systems of 30 countries and published their findings in the 2017 Melbourne Mercer Global Pension Index (2017 Study). The main objectives of the Study were to (i) benchmark each country's retirement system using more than 40 different factors, (ii) determine the primary shortcomings of each country's retirement system, and (iii) suggest reforms for improvement.

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Harris Poll Survey Reveals Life Is Worse in Retirement for Many Recent Retirees

Harris Poll recently conducted an online survey on behalf of the Nationwide Retirement Institute to gage Americans' outlook on retirement. There were 1,012 responders (i) age 50 or older, (ii) retired or planning to retire within the next 10 years, and (iii) collecting or expecting to collect Social Security benefits. Their responses are sobering.

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