Lean savings, delayed retirement, & more
Despite trying to do better, the average American may not be saving enough for retirement and emergencies, a new national survey found.
The non-profit American Savings Education Council says 53% of American households save at least 5% of their income, while just 28% save the 10% minimum that is usually recommended by experts.
Higher income families with $75,000 or more did better at saving 5% of income than did those who earn $35,000 or less: the difference was 81% to 34%.
Less than half of those surveyed said they had a plan that mandated enough savings to meet goals.
Phased retirement
Baby Boomers will have to consider working past 65 or phasing in retirement by working part time, says The Center for Retirement Research at Boston College.
Rising health care costs have put 35% of those born between 1948 and 1954 and 44% of those born between 1955 and 1964 “at risk of being unable to maintain their standard of living in retirement,” the Center said.
Capital gains break
Lower-income taxpayers whose top federal tax rates are 10% or 15% get a big break on taxation of capital gains and qualified dividends starting this year.
The capital gains tax rate will be 0% for single taxpayers with taxable income of less than $32,550 and married taxpayers with taxable income of less than $65,100.