Baby boomers realize that their retirements may not unfold like those of their parents. New survey data from The Pew Charitable Trusts highlights how perceptions of retirement have changed for this generation. A majority of boomers expect to work in their sixties and seventies, and that expectation may reflect their desire for engagement rather than any economic desperation.
Instead of an “endless Saturday,” the future may include some 8-to-5. Pew asked heads of 7,000 U.S. households how they envisioned retirement and also added survey responses from focus groups in Phoenix, Orlando and Boston. Just 26% of respondents felt their retirements would be work-free. A slight majority (53%) told Pew they would probably work in some context in the next act of their lives, possibly at a different type of job; 21% said they had no intention to retire at all.1
A rundown of the big & little alterations coming next year.
2015 will bring COLAs, changes & something new. Each year, the retirement benefits landscape looks a little different, and next year is no exception. Here’s a look at what will change, what might develop, and even what won’t change for 2015.
The 401(k) contribution limit expands $500 to $18,000 next year. The catch-up contribution limit for plan participants 50 and older also rises by $500 to $6,000. If you are in the 25% tax bracket and put $18,000 in your 401(k) next year, you will save $4,500 in 2015 federal income taxes as a result. That tax savings comes with a regular 401(k), not the Roth version.1