Top Retirement Planning Stories of the Decade

Although much has happened during the last ten years, here are the most important retirement planning stories of the decade.

Volatile Markets Change Retirement Expectations

At the start of the decade, stock market values were riding high. Then we had our first bear market after 9/11.  Then from 2003 until late 2007, investors experienced incredible growth. Many thought they’d be retiring early. The year 2008, all by itself, brought that idea crashing to earth. The second half of 2009 & the year of 2010 were incredibly kind to those who stayed the course but the investment ride of the decade is certainly the retirement planning story of the decade.

IRA and 401(k) Contribution Limits Increase Dramatically

In 2000, the most an individual of any age could contribute to a 401(k)4 was $10,500. Today, that amount is $16,500 ($22,000 > 50 yrs old). For IRAs it’s gone from $2,000 to $5,000 ($6,000 > 50 yrs old).  While it’s no easier to save the maximum in those accounts than it was at the beginning of the decade, the benefit of doing so is now far more dramatic.

Continued Decline of Defined-Benefit Plans

Very few private companies offer a “pension” these days.  Those that did, many have frozen the benefits.

Taken together these top retirement planning stories of the decade simply highlight the one constant: While you can’t predict the future, you can “plan” for it.  If you want a chance at a comfortable retirement, you better start saving soon. Certainly, begin well before the next decade comes to a conclusion. It will be here faster than you can imagine.