Retirement loan – 100 CSKD Thu, 17 Nov 2022 05:01:00 +0000 en-US hourly 1 Retirement loan – 100 CSKD 32 32 Retirement savers, especially Gen Z, remain stable even in a tough stock market Thu, 17 Nov 2022 05:01:00 +0000 Despite market turmoil that has eaten away at retirement account balances and left workers feeling worse off financially, the majority of retirement savers have kept their contributions steady, and Gen Z savers have actually increased. their contribution rates, according to new data from Fidelity Investments.

Although average account balances have declined, the data suggests that retirement savers have continued to focus on the long term: 401(k) total savings rates have remained high, the number of IRAs at Fidelity continued to rise and the percentage of employees with 401(k) loans remained low for a sixth consecutive quarter, the company found.

“The market has taken some dramatic turns this year, including last October’s best month since 1976,” said Kevin Barry, president of workplace investing at Fidelity Investments. “Retirement savers have wisely chosen to avoid tragedy and continue to make smart long-term choices. This is important because one of the most essential aspects of a good retirement savings strategy is to contribute consistently enough – in up, down and sideways markets – to help you reach your goals.

Lily: Why You Shouldn’t “Set and Forget” Your Retirement Accounts

Total 401(k) savings rates remained stable. The total savings rate for the third quarter, which reflects a combination of employer and employee 401(k) contributions, remained relatively stable at 13.8%, compared to 13.9% in the second quarter and 14.0% in the first quarter of the year. This was slightly below Fidelity’s suggested savings rate of 15%.

The majority of workers (86%) kept their savings account contributions unchanged and 7.8% even increased their contribution rate. Men continued to save at higher rates than women (14.5% versus 13.5%), while pre-retired baby boomers saved at the highest levels (16.5%). Gen Z participants increased their level of savings this quarter from 10% to 10.3%.

Lily: Your 401(k) has had a crazy year. How to know when it’s time to rebalance.

“Generally, retirement savings rates weren’t an initial option for people when they wanted to make changes to their financial situation. We also haven’t seen people dipping into the loans,” said Mike Shamrell, vice president of thought leadership at Fidelity. “A lot of people realize that saving for retirement is a marathon, not a sprint. And over the long term, you will encounter many market scenarios. Staying the course and adopting a long-term perspective is truly the strongest path.

The majority of retirement savers are still not making changes to their asset allocation. Only 4.5% of 401(k) and 403(b) savers changed asset allocation in Q3, fewer than the 5.0% who did so in Q2 and those who changed asset allocation in the third quarter a year ago (4.8%). Among savers who made changes in the third quarter, about 85% made just one, with the main change involving the shift in savings towards more conservative investments (29%).

401(k) outstanding loans and average loan sizes continue to decline. Despite inflationary pressures, the percentage of 401(k) savers initiating a new loan remains low, with only 2.4% of participants having done so in the third quarter. In addition, the percentage of participants with an outstanding loan remained at 16.7% in the third quarter, a significant drop, compared to 18.7% in the third quarter of 2020 at the start of the pandemic.

In contrast, the percentage of people with negative feelings about their finances (32%) is now higher than those with positive feelings (30%), which contrasts sharply with just a year, when the percentage of workers who were positive about their finances (45%) was more than double the percentage of those with negative feelings (22%).

In addition, average retirement account balances declined for the third consecutive quarter.

The average IRA balance was $101,900 in the third quarter, down 24.9% from a year ago, down 8% from last quarter and up 33% from last quarter. compared to 10 years ago.

The average 401(k) balance fell below the six-figure mark at $97,200 this quarter, down 22.9% from a year ago, 6% from the second quarter and a 28% increase from 10 years ago. For baby boomers, the average 401(k) balance was $197,400, while Gen X had $126,800. Millennials’ average balance was $36,900 and Gen Z’s was $4,900.

The average 403(b) account balance decreased to $87,400, down 21% from a year ago, a decrease of 6% from last quarter and an increase of 48% from last quarter. 10 years ago.

Even so, Gen Z 401(k) savers actually increased their balances slightly this quarter, Fidelity said. Although their balances are smaller, among Gen Z savers, who are heavily invested in term funds, the average account balance actually increased 1.2% from last quarter.

“Gen Z really sees the positive benefits of auto services such as automatic enrollment in company plans,” Shamrell said. “Retirement is many years away, but they seem to be the group staying the course, which is probably the best approach they can take.”

In the third quarter, 85% of Gen Z savers have all of their 401(k) savings in a target date fund. Using target date funds as the default option continues to grow in popularity, with plan sponsor adoption of 93.2% in Q3 2022, up from 88.3% in Q3 2017. just five years ago.

The number of IRA accounts continues to grow, especially among Gen Z and Millennials.

The total number of Fidelity IRA accounts continues to climb, reaching 13.2 million, an increase of 11.2% from the third quarter of last year. The number of accounts reporting a contribution also increased by 2.3% year-to-date between the third quarter of last year and this year.

Across generations, Roth accounts tend to be the retirement savings vehicle of choice, with 61% of all contributions going to a Roth in the third quarter of 2022.

Younger generations continue to lead the way, with the number of Gen Z accounts increasing by 83% from the third quarter of last year and the number of Gen Y accounts increasing by 25%. In particular, contributing millennial Roth IRA accounts are up 5.8% year-to-date. Additionally, younger generations (Gen Z and millennials) now make up about half (45%) of the tax-exempt workforce, Fidelity said.

Fidelity said its third-quarter analysis of savings behaviors and account balances included data from more than 35 million IRA, 401(k) and 403(b) retirement accounts.

Indonesia and AfDB Launch First Coal Power Plant Withdrawal Agreement Mon, 14 Nov 2022 08:13:00 +0000

NUSA DUA, Indonesia, Nov 14 (Reuters) – Indonesia, the Asian Development Bank and a private power company said on Monday they were teaming up to refinance and prematurely decommission a coal-fired power plant, the first project of its kind under a revolutionary carbon emissions policy. discount program.

The 660-megawatt Cirebon 1 power plant in West Java would be refinanced under a $250-300 million deal on the condition that it be decommissioned 10-15 years before the end of its useful life of 40 to 50 under a memorandum of understanding (MOU), Asian Development Bank (AfDB) officials said.

Manila-based multilateral lender and Indonesian Finance Minister Sri Mulyani Indrawati announced the memorandum of understanding with independent power producer Cirebon Electric Power in Bali on the sidelines of the G20 leaders summit.

The deal, the final details of which would be worked out as part of the memorandum of understanding, could eliminate up to 30 million tonnes of greenhouse gas emissions over a 15-year period – the equivalent of removing 800 000 cars off the road, estimates the AfDB.

The deal is the first under the AfDB’s Energy Transition Mechanism (ETM), an initiative to combine private investment funds, public finance and philanthropic donations to buy back or refinance coal-fired power plants in Southeast Asia in order to remove them quickly as the region transitions to renewable energy. sources.

The ETM project, first reported by Reuters last year, was developed by the AfDB with input from private sector firms including Prudential (PRU.L), Citi (CN) and Black Rock (BLK. N) to eliminate decades of future carbon emissions by changing the economics of operating coal-fired power plants.

“The problem of coal-fired power in Southeast Asia is considered one of the biggest problems of the energy transition, if not the world,” AfDB Regional Vice President Ahmed M told Reuters. Saeed, in an interview.

“With this announcement, we are taking the first steps in what was an ambitious project and making it a reality,” he added.

The coal-fired power plant deal was announced alongside a broader national platform for energy transition in Indonesia, which depends on coal for 60% of its electricity. Sri Mulyani said at the event that the government had identified power stations generating 15 gigawatts of electricity which could be withdrawn earlier.

“Fifteen gigawatts – that’s a very large size,” she said, adding that it would require “a significant investment.”

A new “just energy transition partnership” between rich countries and Indonesia is expected to be announced at the G20 summit on Tuesday.


The Cirebon 1 deal does not change the ownership structure of the 12-year-old power station, a key electricity supplier in Jakarta with a 30-year supply contract with public grid operator Perusahaan Listrik Negara (PLN).

Instead, it would compensate owner Cirebon Electric for the present value of lost early retirement profits from the plant with a new low-interest concessional loan arranged through the private sector arm of the AfDB, said David Elzinga, senior climate change energy specialist at the AfDB.

The deal will include funds from Indonesia’s $500 million allocation from the Climate Investment Fund, but the structure is still being put in place, Elzinga said, adding that the AfDB initially requested a contribution. $50 million to the fund.

The AfDB also said a number of financial firms and philanthropic groups have expressed interest in participating in the transaction.

The deal also marks a shift from ETM’s original concept from an “acquire and withdraw” model to a “refinance and accelerate retirement” model, Saeed said, adding that Cirebon, whose shareholders include Japan’s Marubeni Corp ( 8002.T) and Korea’s Midland Electric Power Co was motivated to play an active role in the transition rather than just offloading the plan.

“It became clear that it’s a simpler structure to leave the existing owner in place,” Saeed said. “And so we could deliver economic value through financing rather than change in ownership.”

AfDB officials said they expected the Cirebon deal to give private investors more confidence to explore future participation, and that the development finance institution’s leadership could help them protect against any negative public perception regarding new investments in coal finance.

The deal comes amid growing calls for multilateral development banks to stretch their balance sheets and mobilize more private sector capital to fund the massive investments needed to tackle climate change. The World Bank is expected to produce an evolutionary roadmap to address these challenges in December.

Reporting by David Lawder; edited by Diane Craft, Raju Gopalakrishnan and Louise Heavens

Our standards: The Thomson Reuters Trust Principles.

Bombay High Court Denies Post-Retirement Plea of ​​Chanda Kochchar, Ex-CEO of ICICI Bank Fri, 11 Nov 2022 04:12:30 +0000

Former ICICI Bank CEO Chanda Kochhar’s post-retirement plea rejected

The Bombay High Court has refused to grant interim relief on the post-retirement appeal of former ICICI Bank CEO Chanda Kochhar. Judge RI Gahla’s single bench also asked Ms Kochhar not to touch the 6.90 lakh shares she acquired in 2018, news agency PTI reported.

The bench said Ms. Kochhar must disclose whether she has made any past stock-related transactions. “If she dealt with actions, she must disclose it by affidavit in six weeks,” the judge said.

Judge Gahla also ruled that Ms Kochhar’s dismissal was valid, the report added.

“I considered the termination a valid termination,” Judge Chagla said.

Citing the reasons, Judge Chagla added: “ICICI Bank did not have full knowledge of the facts, including Ms. Kochhar’s non-disclosures (at the time of her resignation)…these facts were only disclosed ‘upon receipt of the investigation report. . I argued that the dismissal was a valid dismissal and that Ms. Kochhar did not show up to court with clean hands.’

Ms Kochhar had applied for special benefits from her employer in 2018, the report added.

At the time, the Central Investigative Committee charged Ms Kochchar with criminal conspiracy and cheating over alleged irregularities in a ₹3,250 crore loan in 2012 to Videocon Group. This legacy business has become a non-performing asset for ICICI Bank.

ICICI bank said Ms Kochchar violated the company’s code of conduct and internal policies.

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Lawmakers are running out of time to pass the Secure Retirement 2.0 Bill Sat, 05 Nov 2022 11:00:00 +0000

Secure 2.0 is the rare piece of legislation that has received bipartisan support.

Eric Lee/Bloomberg

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Pell-Grant recipients are eligible to receive up to $20,000 in debt forgiveness. Non-Pell Grant recipients are eligible to receive up to $10,000 in debt forgiveness. This will not apply to the top 5% earners. Individuals are only eligible if their income is less than $125,000 or $250,000 for married couples.

Where to Apply Your Student Loan Savings

Now that you’ve learned about the student loan relief plan and the savings you’re entitled to, let’s talk about where to apply those savings: outstanding debt and retirement.

Outstanding debt: The average debt per American household is ridiculously high. Even when you write off student loan debt, Americans are still responsible for automobiles, personal loans, and credit cards.

Putting the new student loan savings into other debt relief efforts is a smart move. By eliminating your debt, you could see an increase in your net income that could be directed to an emergency fund, general savings, or retirement.

Below is a chart based on a 2021 study reflecting average debt by type.

SmartAsset: Here's what you can do with your student loan relief

SmartAsset: Here’s what you can do with your student loan relief

Retirement: The other option is to catch up with retirement savings. With high student loan debt and the high cost of homes, millennials and Gen Zers are either postponing their savings for retirement or not saving enough. While it may seem like retirement is a long way off for some 20-somethings, what they really miss is the concept of compound interest that will mean the difference in thousands of dollars when retirement arrives. To find out if you’re on the right track with your savings, use a retirement calculator to see how much you’ll need.

If you haven’t contributed in retirement or aren’t contributing at the required rate, withdrawing excess savings from student loan relief can help you fill the gap.

In numbers: your potential savings

SmartAsset: Here's what you can do with your student loan relief

SmartAsset: Here’s what you can do with your student loan relief

The average American had a student loan repayment of about $400 before the payment break according to the Federal Reserve. That’s an average of $4,800 per year. If you receive $20,000 in savings, that $4,800 is just over four years of contributions. Assuming you’re 30 and plan to retire at 65, let’s see how that will look over 35 years if you choose to contribute to retirement savings with an average return of 5-8% and interest compound annuals.

Now let’s look at the chart below to see what that sum alone will look like if it’s allowed to continue to sit and grow in a 401(k) account for the rest of your working years until you reach the age of 65.

SmartAsset: Here's what you can do with your student loan relief

SmartAsset: Here’s what you can do with your student loan relief

If you were wise and chose to continue contributing the same $400 per month for the remaining 30.84 years until you hit age 65, this is what your total retirement nest egg would look like.

SmartAsset: Here's what you can do with your student loan relief

SmartAsset: Here’s what you can do with your student loan relief


If you have student loans and earn less than $125,000 a year ($250,000 for married couples), you’ll get a $10,000 to $20,000 reduction in student debt. What you do with the savings is up to you, but with Social Security insolvency on the horizon, bolstering your retirement savings can be a smart option for a comfortable retirement.

retirement advice

  • The decision to retire is one of the most important and difficult decisions many of us will make. A financial advisor can help you determine a timeline and create a plan for the future. SmartAsset’s free tool connects you with up to three financial advisors who serve your area, and you can interview your matching advisors for free to decide which one is right for you. If you’re ready to find an advisor who can help you achieve your financial goals, start now.

  • Use our free retirement calculator to assess your progress towards the retirement goals you have set for yourself.

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The post Save $10,000 to $20,000 with student loan relief? Here’s What To Do With It appeared first on the SmartAsset blog.

Voya research reveals new workplace benefits and savings needs for higher education institutions in the post-pandemic world Tue, 25 Oct 2022 13:30:00 +0000

WINDSOR, Conn.–(BUSINESS WIRE)–Voya Financial, Inc. (NYSE: VOYA), today announced the release of new results from its biannual survey of pension plan decision makers in the higher education sector. Voya’s findings highlight the unique challenges and opportunities facing higher education institutions today following the COVID-19 pandemic, particularly when it comes to attracting and retaining top talent .

Voya’s research took place in two phases:

  • An online survey of pension plan decision makers from over 300 higher education institutions.

  • In-depth interviews with a select group of decision makers.

Research has found that attracting and retaining staff are, by far, the biggest challenges facing higher education institutions – with a majority (80%) agreeing that attracting and retaining high-quality administrators is a big deal. more important today.

The ability to attract and retain top talent has been a challenge for many industries, but for those in the higher education sector, it has only been exacerbated by the pandemic,” said Brodie Wood, vice -President and National Practice Leader for Voya’s Education Market. “When you consider today’s job market with more competition for companies to find staff in general, in most cases higher education institutions are not able to compete with the advantage of the flexibility that many jobs outside of the industry offer today – such as the desire to work completely remotely, which many colleges and universities do not allow. At the same time, these challenges present many unique opportunities for these institutions to deepen their benefits offerings as an area to stand out from their peers.

Voya’s research also found that a majority (89%) of institutions agree that an organization’s overall benefits program helps attract and retain high-quality employees. Specifically, key areas of opportunity for higher education institutions to focus on when it comes to social benefits include:

  • The pension plan and the employer correspond. When asked to identify the most important benefits for attracting talent, the defined contribution (DC) plan comes out on top, followed by paid vacation and a defined benefit pension plan. Ninety percent also agree that a DC pension plan helps to attract high-quality employees, and 87% agree it helps to hold onto high quality employees. And, in response to staffing pressures and the pandemic, half (50%) of institutions report having started or increased employer-pension matching since January 2021.
  • A focus on holistic benefits. Plan sponsors generally agree that employees face significant challenges when it comes to their ability to save for retirement, including: caregiving responsibilities (87%), education (85%) and the impact of inflation (84%). As a result, some are addressing these challenges through wellness programs such as student loan repayment assistance (49%) and planning for caregivers and employees with special needs and disabilities (42%). Additionally, 83% consider the idea of ​​matching student loan payments with a retirement plan contribution to be more important today than it was before the pandemic.
  • Accompaniment and accompaniment in compensation decisions. While 86% of organizations agree that more can be done to help employees make informed decisions about how to optimize their benefits in terms of workplace benefits and savings, an even higher number (90 %) agrees that financial advice and counseling services offered in the workplace are a highly valued component of the overall benefits package.

Adapting to the “new normal”

Voya’s survey also asked institutions about which needs have grown in importance, comparing their interest now versus before the pandemic began. While in today’s environment, several actions have become more important. Among many other priorities, those that rise to the top include:

  • Adopt strong socially responsible business practices and policies in all ESG areas (85%);

  • Provide student loan assistance (82%);

  • Develop/expand a diversity, equity and inclusion strategy and/or hiring programs to attract talent (81%);

  • Addressing mental health issues to better support employees (80%); and

  • Attract and retain high quality support staff (eg food services, grounds maintenance, maintenance staff) (80%).

Interestingly, Voya’s research found that many colleges and universities include a description of their pension plan in their offers to potential applicants, with some noting that the value of their pension plan and health insurance plan is more important to staff and potential staff than others. employee benefits, including non-traditional benefits.

While benefits can play a central role for many organizations in helping to attract and retain talent today, those in the higher education sector face even more complex needs, so it’s encouraging to see the CD plan seen as a basic tool that organizations are using to help meet the challenge,” added Wood. “Knowing that there are more opportunities ahead to support organizations through pending retirement legislation is also a big factor. It is therefore not surprising that 88% of colleges and universities believe that government support such as that described in current retirement legislation, i.e. SECURE 2.0, will help encourage employees to save, improve retirement plans and reduce costs for employers in the future.

Pension advisors play a central role

As the pension plan grows, the role of the advisor also grows in support. According to Voya’s research, two out of three higher education organizations (67%) rely on the services of a plan advisor or consultant; Of those who don’t, almost all plan to hire one next year. With respect to the services provided by plan advisors, organizations report a wide range of support functions, including plan design, investment review/selection, fiduciary and regulatory support, plan compliance , plan transitions and provider due diligence as well as implementing member education. programs and the design of financial wellness programs.

When it comes to supporting the overall retirement readiness of their workforce, employers today face many opportunities within their extensive benefits package,” added Wood. “Pension plan advisors can play a vital role for employers in establishing a plan that can both meet their needs and guide their employee to a financially secure retirement. Therefore, at Voya, we are always focused on delivering solutions that we know will support the finance professionals we work with and ultimately help improve their clients’ retirement outcomes. »

Voya serves savings and benefits clients of all sizes and in all industries, including public and private higher education institutions and other tax-exempt retirement plan markets. Specifically for higher education, Voya supports more than 1,500 higher education pension plans, and the average tenure of a higher education client is nearly three decades.1 To learn more, visit

With a number of products, solutions and technologies that help employers and employees meet their benefits and savings needs, Voya continues to offer solutions to enable actions that can help employees to achieve positive results as part of their health and wealth benefits. This includes the recent introduction of myVoyage, a new and first digital platform for personalized financial advice and connected workplace benefits, and the integrated and holistic benefits selection experience myHealth&Wealth.

As an industry leader focused on providing benefits, savings and investment solutions to and through the workplace, Voya is committed to fulfilling its mission to enable a secure financial future for all Americans – one person, one family, one institution at a time.

All data, unless otherwise stated, is based on the results of the Voya Study of Pension Management in the Higher Education Sector conducted by Greenwald Research. The study consisted of two phases both with pension policymakers at higher education institutions, including: an online survey conducted on June 29, 2022 On July 19, 2022, from 301 pension plan decision makers at higher education institutions offering a defined contribution pension plan, as well as in-depth interviews with a select group of decision makers conducted in August 2022.

1. Voya internal data as of December 31, 2021.

About Voya Financial®

Voya Financial, Inc. (NYSE: VOYA), is a leading health, wealth and investment company that provides products, solutions and technologies that enable a better financial future for its customers, its customers and society. Servicing the needs of 14.3 million retail, professional and institutional customers, Voya has approximately 6,000 employees and total assets under management and administration of $644 billion as of June 30, 2022. Certified as a “Great Place to Work” by the Great Place to Work® Institute, Voya is driven and also committed to conducting its business in a socially, environmentally, economically and ethically responsible manner. Voya has been recognized as: one of the World’s Most Ethical Companies® by the Ethisphere Institute; member of the Bloomberg Gender-Equality Index; and one “Best Workplace for Disability Inclusion” on the Disability Equality Index. For more information, visit Follow Voya Financial on Facebook, LinkedIn and Twitter @Voya.


Court temporarily blocks Biden’s student loan cancellation Sat, 22 Oct 2022 01:07:30 +0000

ST. LOUIS (AP) — A federal appeals court issued an administrative stay Friday night temporarily blocking President Joe Biden’s plan to forgive billions of dollars in federal student loans, throwing the program into limbo just days after the people started asking for loan forgiveness.

The Eighth Circuit Court of Appeals issued the stay while it considers a motion by six Republican-led states to block the program. The suspension ordered the Biden administration not to act on the program while it considers the appeal.

It’s unclear what the ruling means for the 22 million borrowers who have already applied for the relief. The Biden administration had promised not to write off debt until October 23 as it battled legal challenges, but the earliest it was expected to start writing off debt was mid-November.

White House press secretary Karine Jean-Pierre encouraged borrowers to continue to apply for the relief, saying the court’s temporary order does not prevent applications or applications from being considered.

“We will continue to move full speed ahead with our preparations in accordance with this order,” she said in a statement. “And, the administration will continue to fight Republican officials who are suing to block our efforts to help working families.”

The crucial question now is whether the problem will be resolved before January 1, when payments on federal student loans are expected to restart after being halted during the pandemic. Millions of Americans were to have their debt completely canceled under Biden’s plan, but now face uncertainty over whether they will have to start making payments in January.

Biden has said his previous payment pause extension will be his last, but economists worry that many Americans may not have regained financial footing after the pandemic upheaval. If borrowers who expected debt cancellation are asked to make payments in January, there are fears that many of them could fall behind on bills and default on their loans.

A notice of appeal to the United States Court of Appeals for the Eighth Circuit was filed Thursday evening, hours after U.S. District Judge Henry Autrey’s ruling in St. Louis. that since the States of Nebraska, Missouri, Arkansas, Iowa, Kansas and South Carolina have failed to establish standing, “the Court has no jurisdiction to hear this case.

Separately, the six states also asked the district court for an injunction restraining the administration from implementing the debt cancellation plan until the appeal process is completed.

Nebraska Attorney General Doug Peterson, one of six attorneys general leading efforts to block the debt relief program, welcomed the court’s decision.

“We are delighted that the temporary reprieve has been granted,” Peterson said in a statement. “It is very important that the legal issues involving presidential power be analyzed by the court before transferring more than $400 billion in debt to American taxpayers.”

Speaking ahead of Friday’s decision at Delaware State University, a historically black university where the majority of students receive federal Pell grants, Biden touted the number of applicants. who applied for the loan relief in the week since his administration made its online application available.

The plan, announced in August, would forgive $10,000 in student loan debt for those earning less than $125,000 or households with incomes below $250,000. Pell Grant recipients, who typically demonstrate greater financial need, will get an additional $10,000 in debt forgiveness.

The Congressional Budget Office said the program would cost about $400 billion over the next three decades. James Campbell, a lawyer for the Nebraska Attorney General’s Office, told Autrey in an Oct. 12 hearing that the administration was acting outside of its powers in a way that would cost the states millions of dollars.

Forgiveness applies to federal student loans used to attend undergraduate and graduate school, as well as Parent Plus loans. Current students are eligible if their loans were disbursed before July 1. The plan makes 43 million borrowers eligible for debt forgiveness, including 20 million who could see their debt wiped out entirely, according to the administration.

The announcement immediately became a major political issue ahead of November’s midterm elections..

Conservative lawyers, Republican lawmakers and business-oriented groups have argued that Biden overstepped his authority by taking such sweeping steps without congressional consent. They called it an unfair government giveaway to the relatively well off at the expense of taxpayers who did not pursue higher education.

Many Democratic lawmakers facing tough re-election contests walked away from the plan.

Biden on Friday lambasted Republicans who criticized his relief package, saying “their outrage is false and hypocritical.” He noted that some Republican officials have had their debts and pandemic relief loans forgiven.

The six states sued in September. Lawyers for the administration countered that the Department of Education has “broad authority to administer federal student financial assistance programs.” A court filing said the Higher Education Student Aid Opportunity Act of 2003, or HEROES Act, allows the Secretary of Education to waive or vary the terms of wartime federal student loans. or national emergency.

“COVID-19 is such an emergency,” the filing reads.

The HEROES Act was enacted after the terrorist attacks of September 11, 2001 to help the military. The Justice Department says the law allows Biden to reduce or forgive student loan debt in the event of a national emergency. Republicans argue the administration is misinterpreting the law, in part because the pandemic is no longer considered a national emergency.

Justice Department attorney Brian Netter told Autrey during the Oct. 12 hearing that the fallout from the COVID-19 pandemic was still being felt. He said defaults on student loans have skyrocketed over the past 2 1/2 years.

Other lawsuits have also sought to shut down the program. Earlier Thursday, Supreme Court Justice Amy Coney Barrett denied an appeal from a group of Wisconsin taxpayers seeking to stop the debt cancellation program.

Barrett, who oversees emergency appeals from Wisconsin and neighboring states, did not comment on the dismissal of the appeal from the Brown County Taxpayers Association. The group wrote in its Supreme Court filing that it needed an emergency order because the administration could begin writing off outstanding student debt as early as Sunday.


Associated Press reporter Darlene Superville contributed from Dover, Delaware.

Loans from credit unions increased by 1.9% in August | 2022-10-18 Tue, 18 Oct 2022 19:57:00 +0000

Credit union loans outstanding rose 1.9% in August, compared to a similar increase of 1.9% in July 2022 and a 1.0% increase in August 2021, according to the latest monthly credit union estimates. of credit from CUNA.

Other mortgages led loan growth during the month, up 3.9%, followed by unsecured personal loans (3.3%), home equity loans (3.0%), adjustable rate mortgages (3.0%), other loans (2.9%), new loans (2.6%), used car loans (1.6%), credit card loans (1.3 %) and fixed rate mortgages (0.9%).

Credit union savings balances decreased -0.2% in August, compared to an increase of 0.1% in July 2022 and an increase of 0.1% in August 2021. accounts (0.1 %).

Down were money market accounts -0.7%, followed by equity trades (-0.8%) and common stocks (-0.9%).

Credit unions’ 60+ day delinquencies remained at 0.49% in August.

The loan-to-savings ratio increased to 77.9% in July from 76.2% in July. The liquidity ratio (the ratio of excess funds maturing in less than a year to borrowings plus other liabilities) declined from 14.8% in July to 13.5% in August.

The total number of credit union memberships rose 0.3% in August to 134.6 million.

The movement’s overall capital-to-asset ratio fell to 8.9% in August from 9.0% in July. Total dollar capital amount decreased -1.4% to $194 billion

Here’s how much the average 60-year-old American has in retirement savings – how does your nest egg compare? Sun, 16 Oct 2022 14:00:00 +0000

Here’s how much the average 60-year-old American has in retirement savings – how does your nest egg compare?

Even Americans with only modest retirement funds may be shocked to learn how many people are in dire straits: as in, they have no nest egg at all.

A new Federal Reserve study shows that one in four Americans (including the 27% who consider themselves retired) have saved absolutely nothing.

And even if you have something hidden, it might not be enough – although it’s something you can change even late in the game.

According to the Institute for Social Benefits Research, Americans are an estimated $3.68 trillion behind in retirement savings. While this includes everyone between the ages of 35 and 64, those in their 60s still don’t fare very well.

Here’s how your savings stack up and what you can do if you’re falling behind.

Don’t miss

What is the average?

A Vanguard study found that people between the ages of 55 and 64 held an average of about $256,000. But that includes high-income earners; breaking down the numbers, it boils down to a median of about $90,000.

Interestingly, a lot has changed even in the short time since 2021, the source of Vanguard’s study figures. Last year, Vanguard noted that retirement savings had actually increased, thanks to the strong performance of the stock market.

But of course, since then, Wall Street’s woes have lingered for much of this year, as even otherwise strong stocks have taken a severe beating.

Which means the 2023 numbers could drop significantly – although with dollar costs averaging, people who hold on and keep investing will be rewarded if the market returns to full strength.

Is there a magic retirement number?

So how much should are you 60?

Retirement calculators like this can help you get answers. But the best thing Americans can do is go to a financial advisor who can help them achieve their goals.

If you want a broader view, Fidelity has ways to identify the right numbers for you. Generally speaking, Americans should aim for the equivalent of their salary at age 30, three times at age 40, six times at age 50 and eight times at age 60.

Read more: ‘Remarkable comeback’: President Biden has just (quietly) cut student loan forgiveness – and the change could affect up to 1.5 million borrowers. Are you one of them?

So if you’re 60 and earning $50,000 a year, that means you should have $400,000 saved in your retirement account. As you can see, neither the average neither the median pension amount is even closer.

That said, the “should” amount does not take into account a multitude of variables. Consider, for example, how much you will be able to reduce your expenses in retirement, the money you can take out of Social Security, the assets you can offload, or the sale of a house.

How can you balance the numbers?

First and foremost, speak with a financial advisor. If you don’t have one, talk to friends who have done well with their advisor or ask someone you trust for recommendations.

The advisor will need to assess your overall financial situation. Do you have children you need to take care of your studies or a marriage? What is your home worth and do you plan to move? What sources of assets have you possibly overlooked?

Remember, it’s never too late to start saving money. Even 5% of each paycheck adds another $96 every two weeks, or $2,500 at the end of the year, which can then get worse.

And that’s far better than the zero bar that applies to 25% of Americans: all of whom deserve better than withdrawing their savings efforts before they begin.

What to read next

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This article provides information only and should not be construed as advice. It is provided without warranty of any kind.

Don’t Retire Until These 2 Things Are Paid Out Wed, 12 Oct 2022 20:30:02 +0000

Leaving those accounts open could tarnish your golden years

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This article was created by MoneyWise. Postmedia and MoneyWise may earn an affiliate commission through links on this page.

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Millions of Canadians spend their working days dreaming of retirement. Yet millions of Canadians too may overlook the crucial financial steps they must take to become retired.

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Although many understand the importance of paying off loans, they often focus on the bad – prioritizing their mortgages, which have lower interest rates, over expensive high-interest accounts. .

Here are the two loans that Canadians have to repay before they even considering retirement.

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Personal loans and credit cards

Personal loans and credit cards generally have the highest interest rates. This is especially true for credit cards, which typically have an average interest rate of 19.99-22.99% in Canada.

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Personal expenses can also end up on a credit card, such as moving and wedding expenses or funeral expenses and unexpected expenses. While these credit card balances need to be paid off quickly, you shouldn’t let them delay saving for your retirement.

Instead, consider lowering your mortgage payments to use those funds to pay off other high-interest loans.

Mortgages have lower interest rates, which will allow you to preserve your savings and pay off your debts. From there, start putting money aside in an emergency fund with about three months’ salary. That way, if unexpected expenses come your way, you’ll be prepared.

Car loans

Finally, auto loans are another area to pay off before retirement. In July 2022, the average interest rate for a car loan was 6.62%, according to Statistics Canada.

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But if you have bad credit, it goes up to 19%. That’s about as much as the interest rate on a credit card.

In addition, you will have to take these payments into account for your retirement. If $400 is spent paying for a car, $300 for a credit card and more for a line of credit, you suddenly have a lot less cash on hand for your retirement.

If you delay your retirement to pay off these loans, setting aside wages to pay them back, you could save thousands in interest and create a cushion for your retirement.

What about my mortgage?

So why not pay off your mortgage too? It’s not just about lower interest rates, although with the national average mortgage rate for a 5-year term set at around 6.14%, that’s a plus.

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While you may be inclined to pay off your home loan, pay off high-interest loans, or put extra money into your retirement fund and let it grow, the strategy most likely to get you closer to retirement and your dream of really achieve financial freedom.

Check your credit score today

If you don’t know your credit score, you can check it in minutes using a free online service.

You can access your credit information anytime, and it’s updated monthly so you can easily track your progress.

And if your credit score isn’t what you want it to be, many free credit monitoring services will give you personalized advice to help you turn things around quickly.

This article was created by Wise Publishing. Wise is dedicated to providing information that helps readers navigate the complex landscape of personal finance. Wise only partners with brands it trusts and which it believes can be useful to the reader. This article provides information only and should not be construed as advice. It is provided without warranty of any kind.