Retirees should ensure that they take their first required minimum distribution from their tax-deferred retirement account in the year they reach 70 1/2 or face a 50% penalty.
The government should promote universal access to retirement savings and give Americans more options for the spend-down phase of retirement, according to the study.
While contributing to a plan helps workers reduce their taxable income, socking away too much in the plan leave clients with no cash to cover unexpected expenses.
Workers want more diversified options for how to spend money traditionally accumulated in workplace retirement accounts, a South African study by financial services group Alexander Forbes finds.
Clients can end up with $1 million in retirement by saving $298 every month and maintain an investment portfolio consisting of stocks, corporate bonds and municipal bonds.
