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Retirement planning for a post-pension world

Retirement planning for a post-pension world

As Americans move from defined-benefit pensions to defined-contribution plans, many households seem poorly positioned for retirement. According to the Federal Reserve’s 2013 Survey of Consumer Finances, households in the 55 to 64 age group have median 401(k) and IRA savings of just $111,000.

Even those with seemingly huge 401(k) balances may not be poised for a decadent post-retirement lifestyle. “The reality is that if you’re one of the lucky few with $1 million in your 401(k) plan, you can probably draw on the order of $40,000 a year out of that plan,” says Anthony Webb, a senior research economist at Boston College’s Center for Retirement...