2014 was a big year in retirement news and research, from women’s retirement savings still lagging behind men’s to LGBT Baby Boomers and soon-to-be-retirees continuing to experience unique hurdles in preparing for retirement.
The Washington Post explored some of the reasons why women are still saving and contributing less to retirement accounts than men, the Associated Press detailed the hurdles LGBT Baby Boomers face when planning for retirement, and the Washington Post gave an in-depth look at a startling study that showed nearly a third of Americans approaching retirement have zero dollars saved for retirement.
Despite the gloomy findings, one bright spot in 2014 was a report showing that millennials, young people whose formative years were tempered by the Great Recession, are starting to save earlier than Baby Boomers.
As each of these groups—Baby Boomers, millennials, women and soon-to-be-retirees—look at retirement planning, fixed indexed annuities (FIAs) have become an increasingly popular tool in ensuring their retirement plan is balanced.
In case you missed them, here are the top 5 stories and retirement news from 2014.
1) Almost 20 Percent of People Near Retirement Age Have Not Saved for It
By Jonnelle Marte
“One in five people who are near retirement age have zero money saved.
Overall, 31 percent of people said they have zero money saved for retirement and do not have a pension. That included 19 percent of people between the ages of 55 and 64, or those closest to retirement age.
What’s going on here? A lot of people said they rarely thought about retirement, at least not until it was too late. About 41 percent of people ages 18 to 29 said they never thought about retirement planning, a number that understandably declined to 20 percent for people above the age of 60.”
Read full story at the Washington Post.
2) Women Are Still Way Behind Men When it Comes to Retirement Savings
By Jonnelle Marte
“Women are just as likely to put away some money for retirement as men — but they are still way behind their male counterparts in total retirement savings, a new study shows.
Men had an average of $139,467 in their individual retirement accounts as of 2012, compared with the average of $81,700 that women had stashed in their IRAs, according to a report released Wednesday by the Employee Benefit Research Institute, a Washington-based research institute that focuses on health, savings and retirement issues.”
Read full story at Washington Post.
3) Fixed Indexed Annuities to Hold ‘Bright Spot’ in 2015
“Fixed indexed annuities will continue to be a ‘bright spot’ for the annuity market in 2015 and the industry can expect a ‘continued shift’ of annuity purchases in the new year toward principal-protected and income-producing products, as baby boomers confront their retirement realities.”
Read full story at ThinkAdvisor.
4) Millennials Save for Retirement Earlier Than Baby Boomers, Survey Finds
By Alicia Adamczyk
“All of those reports encouraging Millennials to start saving for retirement as soon as possible may be paying off, literally. According to the 15th Annual Transamerica Retirement Survey, performed by the nonprofit Transamerica Center for Retirement Studies, Millennials are an ‘emerging generation of retirement super savers,’ with 74% starting to save for retirement at an ‘unprecedented’ median age of 22, or 5 years sooner than Gen Xers and a staggering 13 years sooner than Baby Boomers.”
Read full story at Forbes.
5) LGBT Baby Boomers Face Tough Retirement Hurdles
By Ken Sweet
“For many, decades of workplace discrimination impaired their earning power. The AIDS crisis caused lasting financial and psychological damage, particularly for gay men. And legal pitfalls within Social Security, the cornerstone in any senior’s financial planning, have left gay boomers ill-equipped for retirement.”
Read full story at ABC News.