Biden Wants to Take the “Junk” Out of Retirement Advice

Professional advising services can help people reach their retirement goals — but that guidance isn’t always free, and advisers may have conflicts of interest that can leave savers less secure. The unfortunate reality is that some advisors get paid commission to push certain products, even if they work against their client’s best interests.

There may soon be rules to hold those shady investors accountable. Retirement investors can look forward to new protections against dubious financial advice as part of the Biden administration’s latest strike against “junk” fees, or hidden costs by service providers in clients’ bills.

The White House announced this week that it’s working with the Department of Labor to propose a new rule to mandate that paid advisers put their clients before profit when giving guidance on products like rollovers and annuities.

You can read more about how retirement investors can benefit from the proposal from Money writer Brenden Reardick’s story.

— Mary Ellen Cagnassola, Money reporter

Many American workers are anxious that they’ll never be able to retire or may have to continue working in some capacity in retirement. The latest retirement confidence survey from the Employee Benefit Research Institute found, however, that almost half (46%) of retirees said they actually left the workforce earlier than planned.

That may sound like a good thing, but EBRI’s research shows that more than a third of respondents who retired sooner than expected did so because of hardship, like health issues or job loss. Workers reported an expected median retirement age of 65, while retirees reported that they actually retired at a median age of 62.

• If you haven’t signed up for 2024 Medicare coverage yet, there’s still time to enroll before the Dec. 7 deadline.
• Thinking about where you want to live in retirement? These states may not be ideal because of their heavy tax burdens.
• The IRS announced new 401(k) contribution limits for 2024 — see how much more money you can put toward your retirement plan next year.

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