Are Retirees Underspending? Pensions, Trump Accounts, and Aging Alone

Could you be spending more in retirement than you think? On this episode of the Retire Sooner Podcast, Wes Moss and Christa DiBiase dig into new research on retiree spending, a possible comeback for pensions, and a wide-ranging batch of listener questions about saving, investing, and planning for the future.

· Explore research suggesting many retirees may underspend, and why money that arrives as an income stream may feel easier to spend than money pulled from savings.

· Climb the "yield ladder" and see how dividends and interest from different types of investments may factor into retirement income.

· Examine why more employers seem to be offering pensions again, and how cash balance plans may differ from traditional pensions.

· Unpack where extra cash flow may go once the mortgage is paid off, from Roth 401(k) catch-up contributions to brokerage accounts.

· Learn when a 529 plan may be "enough," and how Trump accounts and future Roth conversions may fit into a child's long-term savings.

· Review how withdrawals from a 403(b) with both pretax and Roth money may be taxed.

· Compare investing a lump sum all at once versus dollar-cost averaging over time.

· Follow how the U.S. government and Federal Reserve may add money to the system, and what that may have meant for post-COVID inflation.

· Discover options for people aging alone, including financial powers of attorney, professional fiduciaries, and trust companies.

From Jean Chatzky’s new book on retiree spending and pensions to 529s, Roth conversions, and estate planning, Wes and Christa take on some of the money questions many listeners may be facing. Listen and subscribe to the Retire Sooner Podcast for more educational conversations about retirement planning, investing, and financial independence. Learn more about your ad choices. Visit megaphone.fm/adchoices