GREENSBORO, N.C. — The Federal Reserve's long-awaited decision Wednesday to lower the benchmark interest rate by half a percentage point is underscoring an important financial reminder to seniors: plan ahead for retirement, and don't put all financial eggs in one basket.
"Be prepared to adjust your monthly budgets for smaller checks in 2025, thanks to interest rate cuts," debt expert Ja'Net Adams said.
Adams, who founded her financial literacy program Debt Sucks University, said she has been talking to her retirement-age clients about findings from a recent Bankrate Survey. It revealed the top two regrets Americans have in saving for retirement -- not investing earlier in a 401k and not putting enough savings in an emergency fund.
Troublesome trend
Adams said, "It is a trend that is troublesome because of the millions of Baby Boomers there are in the United States. It is important to look at how we got here and what possibly could be done to make sure that other generations don't end up in the same situation."
No direction
She noted the gradual move from pensions to 401Ks, a trend she found has deterred consistent retirement contributions.
"There is not a lot of education from companies around the 401K, and companies barely motivate employees to contribute to their 401K outside of job onboarding with Human Resources," she said.
Can't go back
There's no going backward, either.
Pensions are costly for employers, who are responsible for payments in the employee's retirement until his or her death. And, the pension money isn't a guarantee.
"Over the last two decades, there have been many stories of pension plans losing all the money in them and employees being left with nothing," she explained.
What to do
The time is now -- or, perhaps yesterday -- for Baby Boomers, especially, to work toward retirement financial health.
"Pay down or pay off homes, so that you don't have those large bills in retirement. If you can, put all the extra money you can find in your 401K or other retirement plan, so you can be in the best financial position possible," she said.
Lastly, consider post-retirement work to bring in consistent supplemental income.
"You don't have to go to work at a department store or fast food restaurant. Go back to your field and consult."