Retirement insights from a Colorado PERA perspective

A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.

<a href="https://apnews.com/article/what-is-republican-trump-tax-bill-f65be44e1050431a601320197322551b" target="_blank" rel="noreferrer noopener">What&#8217;s in the Big Bill That Trump Has Signed into Law | AP News</a>



Congress passed and President Trump signed the large tax and spending bill, known as the One Big Beautiful Bill Act, that President Trump has made a priority. The bill, which is nearly 900 pages long, makes a wide variety of changes to federal law, including extending tax cuts, creating new temporary tax deductions, boosting funding for border security, and reducing the number of people covered by Medicaid and food assistance programs.



<a href="https://www.forbes.com/sites/ronshevlin/2025/07/01/the-new-trend-in-personal-finance-revenge-saving/" target="_blank" rel="noreferrer noopener">The New Trend in Personal Finance: Revenge Saving | Forbes</a>



You may remember the term “revenge spending” from the period following COVID-related lockdowns, which described the surge in spending that occurred as people began to resume regular daily activities. Now, there’s a reversal happening with many people opting for “revenge saving” instead. Experts say unlike traditional saving, which is often focused on long-term goals, revenge saving is more emotionally reactive and a response to economic volatility and uncertainty.



<a href="https://www.usatoday.com/story/money/2025/07/05/most-popular-retirement-states-florida-arizona/84459117007/" target="_blank" rel="noreferrer noopener">Where do Americans Go to Retire? Not Where You Think. | USA Today</a>



While it’s long been known that retirees like to move to warm states like Arizona and Florida, recent analyses have found changing trends as retiree priorities shift. According to one such list, Wyoming is the top destination for retirees, followed by South Carolina and Idaho. Another ranking lists Massachusetts, Florida, and Illinois as top destinations for retirees. Experts say various factors beyond climate influence retiree migration, including proximity to nature, amenities, and cost of living.



<a href="https://www.kiplinger.com/retirement/retirement-planning/the-first-year-of-retirement-rule" target="_blank" rel="noreferrer noopener">The &#8216;First Year of Retirement&#8217; Rule | Kiplinger</a>



If you’re nearing retirement, you may be thinking about what your transition away from work looks like and daydreaming about the possibilities. But experts say that without careful planning, the first year of retirement can make or break the years that follow. Here’s why the first year is so important, and some tips for making sure you’re set up for success in retirement.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: What’s Included in the Federal Spending Bill?

<a href="https://apnews.com/article/social-security-medicare-trust-fund-trump-74e13292f510739724a555d7ded7c1a3" target="_blank" rel="noreferrer noopener">Medicare and Social Security Go-Broke Dates Pushed Up | AP News</a>



This year’s annual assessment of the Social Security and Medicare trust funds found the programs could be forced to begin cutting benefits even sooner than previously expected, if the government doesn’t take action. Social Security is expected to deplete its trust funds one year sooner than last year’s estimate, while Medicare’s hospital insurance fund is expected to run out of cash three years earlier.



<a href="https://www.reuters.com/business/fed-set-hold-rates-steady-middle-east-crisis-tariffs-cloud-outlook-2025-06-18/" target="_blank" rel="noreferrer noopener">Fed Keeps Rates Steady but Pencils in Two Cuts by End of 2025 | Reuters</a>



The Federal Reserve is cautiously keeping its key interest rate unchanged for the time being due to concerns over inflation ratcheting back up. Chair Jerome Powell said that while inflation has been low in recent months, it’s possible prices will rise as the full effects of tariffs are realized. However, experts say rate cuts later this year are still possible.



<a href="https://www.planadviser.com/workers-dont-expect-succeed-saving-retirement/" target="_blank" rel="noreferrer noopener">Workers Don’t Expect to Succeed in Saving for Retirement | PLANADVISER</a>



If you ask people if their generation has it harder than their parents’ generation, 8 times out of 10 they’ll say “yes,” according to a recent report by the Transamerica Center for Retirement Studies. The survey found that across generations, Americans say they’re struggling to meet their financial needs and save for retirement. The good news is employer-based retirement plans are a vital part of retirement success and more than three-quarters of Generation Z say they’re saving for retirement.



<a href="https://coloradosun.com/2025/06/16/aging-in-colorado-housing-crisis/" target="_blank" rel="noreferrer noopener">As Colorado Ages, Seniors are Colliding with the Housing Crisis | The Colorado Sun</a> 



The Colorado Sun continues its series on aging in Colorado with an article that explores how the state’s seniors—the fastest-growing demographic group—are finding themselves dealing with the housing affordability crisis as they search for homes that meet their needs.







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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Social Security, Medicare Finances Worsen

<a href="https://coloradosun.com/2025/06/04/pera-colorado-law-enforcement-funding-deal-proposition-130/" target="_blank" rel="noreferrer noopener">How PERA Could Be the Big Winner of Colorado’s Police Funding Deal | The Colorado Sun</a>



One of the PERA-related bills that lawmakers passed during the recently concluded legislative session uses a unique funding mechanism for the voter-approved Proposition 130, which creates a fund to support public safety in Colorado. Under the bill, the State will give PERA a lump sum of $500 million and then may reduce its annual payments to PERA in future years based on our investment earnings, until the public safety fund reaches a total of $350 million.



<a href="https://www.cbsnews.com/news/social-security-fairness-act-payments-june-2025/" target="_blank" rel="noreferrer noopener">Social Security Says over 2.5 million Retroactive Payments Have Been Processed. Here&#8217;s What to Know. | CBS News</a>



The Social Security Administration says it has processed the majority of retroactive payments due to beneficiaries who had previously been affected by the Windfall Elimination Provision (WEP) and/or Government Pension Offset (GPO). The agency said that while affected individuals should have received their retroactive payments by the end of March and their updated benefit amounts in April, more complicated cases that require manual processing will take more time.



<a href="https://www.npr.org/sections/shots-health-news/2025/06/04/nx-s1-5423538/medicare-drug-price-negotiations-ozempic-otezla" target="_blank" rel="noreferrer noopener">Medicare seeks lower prices for drugs, including Ozempic : Shots &#8211; Health News : NPR</a>



The Centers for Medicare and Medicaid Services has begun its second round of price negotiations with prescription drug manufacturers. The agency is targeting 15 drugs for lower prices, including popular weight-loss medications Ozempic and Wegovy. Any lower prices would go into effect in 2027.



<a href="https://www.investopedia.com/emergency-fund-for-retirement-11741359" target="_blank" rel="noreferrer noopener">Retired? Here&#8217;s 5 Reasons You Still Need an Emergency Fund—Plus How Much It Should Cover | Investopedia</a>



If you’re retired, you may be thinking more about withdrawals from your savings rather than stashing away extra cash, but experts say it’s important to keep saving. Unexpected expenses such as medical bills, home repairs, and other emergencies can wreak havoc on any budget and especially for someone on a fixed income.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: PERA Could Benefit from Public Safety Law

<a href="https://coloradosun.com/2025/05/20/colorado-aging-demographics/" target="_blank" rel="noreferrer noopener">Colorado’s Median Age is Nearing 40 — and Getting Older. Here’s What That Looks Like. | The Colorado Sun</a>



Colorado has long been one of the “youngest” states in the country as measured by median age of its population, but that’s changing as birth rates and migration into the state have declined. The Centennial State’s median age has crept up to 37.9 years old, which is still one of the lowest in the nation, but our state is now aging at the third-fastest rate.



<a href="https://www.kiplinger.com/retirement/401ks/new-bill-would-lower-age-to-contribute-to-401k-to-18-from-21" target="_blank" rel="noreferrer noopener">New Bill Would Lower Age to Contribute to 401(k)s to 18 from 21. What You Need to Know | Kiplinger</a>



Federal lawmakers have reintroduced a bill that seeks to expand access to employer-based retirement plans like 401(k)s for younger workers. The Helping Young Americans Save for Retirement Act would lower the minimum required age to 18 from 21 and make it easier for employers to offer plans to those workers.



<a href="https://www.aarp.org/health/conditions-treatments/fda-approves-alzheimers-blood-test/" target="_blank" rel="noreferrer noopener">What to Know about the First FDA-Cleared Blood Test for Alzheimer’s Disease | AARP</a>



The Food and Drug Administration has for the first time given approval to a blood test that can help diagnose Alzheimer’s disease. Diagnosing Alzheimer’s traditionally involves brain imaging and invasive procedures like lumbar punctures, so doctors hope a simple blood test will make it easier to identify the disease. &nbsp;



<a href="https://www.realsimple.com/signs-you-are-aging-well-11739429" target="_blank" rel="noreferrer noopener">5 Subtle Signs You’re Aging Well, According to Longevity Experts | Real Simple</a>



We hear a lot about aging and some of the health concerns and other issues that can arise, but how do you know you’re aging well? Here are five things that medical experts say are good signs you’re living your best life as you get older.



News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Colorado is Getting Older Faster

<a href="https://www.aspentimes.com/news/colorado-legislature-votes-to-add-financial-literacy-to-list-of-high-school-graduation-requirements/" target="_blank" rel="noreferrer noopener">Colorado Legislature Votes to Add Financial Literacy to List of High School Graduation Requirements | The Aspen Times</a>



Students in all of Colorado’s public school districts may soon be required to take a course in financial literacy to graduate from high school. House Bill 1192, which passed the Legislature, also directs school districts to provide students with help filling out financial aid forms. If signed into law, the bill takes effect for students starting high school in 2026 and later.



<a href="https://www.newsnationnow.com/business/your-money/social-security-fairness-act-increase-missing/" target="_blank" rel="noreferrer noopener" class="broken_link">Social Security Benefit Increase Missing? Here&#8217;s What to Do | NewsNation</a>



Many retirees who were previously affected by the Windfall Elimination Provision (WEP) or Government Pension Offset (GPO) have received their new Social Security benefit payments and any applicable retroactive payments by now. However, officials said some more complicated cases would need manual processing and would take additional time. Here’s the latest on where things stand.



<a href="https://www.napa-net.org/news/2025/4/hickenlooper-reintroduces-federally-run-retirement-plan-bill/?utm_source=MagnetMail&amp;utm_medium=email&amp;utm_term=ksevits%40copera%2Eorg&amp;utm_content=COM%5FNAPA%5FeNews%5F05%2E02%2E2025%5FDaily%5FFri&amp;utm_campaign=Hickenlooper%20Reintroduces%20Federally%20Run%20Retirement%20Plan%20Bill" target="_blank" rel="noreferrer noopener">Hickenlooper Reintroduces Federally Run Retirement Plan Bill | National Association of Plan Advisors</a>



Sen. John Hickenlooper (D-CO) has reintroduced a bill that would create a federally run retirement plan to cover private-sector workers who aren’t covered through their employer. Supporters say the bill would improve the retirement security of lower-income workers, but the bill has faced opposition in the past from those who argue a federal plan would crowd out existing employer-based retirement plans.



<a href="https://finance.yahoo.com/news/20-most-searched-financial-terms-150116759.html" target="_blank" rel="noreferrer noopener">20 Most Searched Financial Terms in the US | GoBankingRates via Yahoo! Finance</a>



When it comes to assessing what Americans know about money and what they don’t, you can learn a lot from online searches. A new study looked at which financial words and phrases people search Google for the most, and the results show a wide range of terms such as interest rates, capital, and equity. Here are the most-searched terms and explanations of what they mean.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: Financial Literacy Bill Passes Colorado Legislature

<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://thehill.com/homenews/5013493-social-security-bill-senate/" target="_blank" rel="noreferrer noopener" class="broken_link">Social Security Reform Bill Awaits Senate Vote Amid Uncertainty | The Hill</a></h2>



The Social Security Fairness Act, a federal bill that would repeal Social Security’s Windfall Elimination Provision and Government Pension Offset, passed the U.S. House in November. The bill is now awaiting action in the Senate, where its fate is increasingly uncertain with just days left for lawmakers to pass legislation before a new Congress begins.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.investopedia.com/lost-track-of-your-old-401-k-accounts-a-new-service-could-help-recover-the-money-8749171" target="_blank" rel="noreferrer noopener">Lost Track Of Your Old 401(k) Accounts? A New Service Could Help Recover The Money | Investopedia</a></h2>



The U.S. Department of Labor is getting ready to launch a database to help workers find old retirement accounts. The so-called retirement savings lost and found aims to make sure workers can find and access their 401(k) savings when they switch jobs rather than leaving that money behind. The database should be up and running by the end of the year.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.fastcompany.com/91236800/retirement-saving-spending-psychology" target="_blank" rel="noreferrer noopener" class="broken_link">Retirement Saving and Spending Can Be Complicated. Here&#8217;s What Psychology Says | Fast Company</a></h2>



When making the transition from regular, full-time work into retirement, many people find themselves struggling to move from a saving mindset to a spending mindset. While every person’s situation is different, principles of psychology can help explain why that transition can be so difficult.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size"><a href="https://www.kiplinger.com/personal-finance/ways-to-maximize-your-end-of-year-philanthropy" target="_blank" rel="noreferrer noopener">Five Ways to Maximize Your End-of-Year Philanthropy | Kiplinger</a></h2>



The end of the year is a popular time to give money to various causes. If you’re thinking of giving this holiday season, here are some things to keep in mind to ensure your donation makes an impact.



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News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.

News You Should Know: WEP/GPO Bill’s Fate Uncertain in Final Days of Congress

The new year is mere weeks away. To make sure taxpayers are informed and prepared, the IRS announced inflation adjustments for many tax provisions in 2025, including marginal tax brackets and retirement account contributions.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Retirement plan contribution limits</h2>



The IRS announced higher contribution limits for 401(k), 403(b) and 457 plans next year.



The maximum amount a worker can contribute to those plans is $23,500 in tax year 2025, an increase of $500. The catch-up contribution limit for most plan participants age 50 and older remains unchanged at $7,500.



Beginning in 2025, some older workers can make additional catch-up contributions. As part of the SECURE 2.0 Act, plan participants who are between the ages of 60 and 63 can make catch-up contributions totaling up to $11,250 in tax year 2025.



<a href="https://www.copera.org/retirees/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">Learn more about PERAPlus 401(k)/457 Plans</a>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">HSA/FSA contribution limits</h2>



The amount of money workers can contribute to medical savings accounts also will increase in 2025.



<ul>
<li>HSA: Individuals enrolled in a high deductible health plan (HDHP) with a health savings account (HSA) will be able to contribute up to $4,300, and those with family coverage will be able to save a maximum of $8,550.</li>



<li>FSA: For workers who don’t have an HDHP with an HSA and instead use a flexible spending account (FSA), the maximum contribution for 2025 is $3,300. For plans that allow unused balances to roll over, the maximum amount that can be rolled over will increase to $660.</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">2025 tax rates</h2>



Below are updated marginal tax rates for single taxpayers and married couples filing jointly. Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025">the IRS website</a> for more tax tables and additional details.



Note that since these changes are for tax year 2025, they will generally apply to tax returns filed in 2026; <a href="https://www.copera.org/pera-on-the-issues/updated-tax-brackets-contribution-limits-other-changes-for-2024">2024 tax rates</a> will apply to returns filed in 2025.



<ul>
<li>37% for incomes over $626,350 ($751,600 for married couples filing jointly)</li>



<li>35% for incomes over $250,525 ($501,050 for married couples filing jointly)</li>



<li>32% for incomes over $197,300 ($394,600 for married couples filing jointly)</li>



<li>24% for incomes over $103,350 ($206,700 for married couples filing jointly)</li>



<li>22% for incomes over $48,475 ($96,950 for married couples filing jointly)</li>



<li>12% for incomes over $11,925 ($23,850 for married couples filing jointly)</li>



<li>10% for incomes $11,925 or less ($23,850 or less for married couples filing jointly)</li>
</ul>



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">Standard deduction</h2>



In addition to updated tax rates, the IRS announced increases to the standard deduction for tax year 2025:



<ul>
<li>Single taxpayers and married couples filing separately: $15,000 ($400 increase)</li>



<li>Heads of household: $22,500 ($600 increase)</li>



<li>Married couples filing jointly: $30,000 ($800 increase)</li>
</ul>







Taxpayers who are 65 or older can take an additional standard deduction, which is also adjusted for inflation. For tax year 2025, that amount is $2,000 for single filers and $1,600 for others.



Visit <a href="https://www.irs.gov/newsroom/irs-releases-tax-inflation-adjustments-for-tax-year-2025" target="_blank" rel="noreferrer noopener">the IRS website</a> for more adjustments to tax provisions in 2025.



<h2 style="color:#000000;" class="wp-block-heading has-black-color has-text-color has-medium-font-size">PERA benefits and taxes</h2>



Colorado PERA benefits are subject to federal income tax, as well as applicable state and local taxes. PERA retirees who would like to update their tax withholding can do so by&nbsp;<a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">logging in</a>&nbsp;to their secure member account or completing a paper Form W-4P.



Retirees and benefit recipients can expect to receive their 1099-R tax forms for tax year 2024 in January 2025.



Learn more at&nbsp;<a href="https://www.copera.org/taxes-on-benefits" target="_blank" rel="noreferrer noopener">copera.org/taxes-on-benefits</a>.

Updated Tax Brackets, Contribution Limits and More to Know for 2025

Saving money is always a good idea. Whether it’s for a rainy day or for a major purchase, saving now can help provide flexibility and security when big expenses come down the road.



April 8 through April 12 is&nbsp;<a href="https://americasavesweek.org/" target="_blank" rel="noreferrer noopener">America Saves Week</a>, an annual initiative of the Consumer Federation of America, a nonprofit consumer advocacy organization. It promotes the value of saving money and the importance of making a plan to save.



Beyond peace of mind, here are some additional reasons to consider stashing away some more money this year, if you can.



<h2 class="wp-block-heading">Take advantage of high interest rates</h2>



The Federal Reserve started raising its key interest rate in March 2022 in an effort to fight inflation. Increases continued throughout 2023, and so far this year, the Fed is holding rates steady.



While the Federal Reserve rate mostly pertains to financial institutions, many banks have passed on those higher rates to their customers. That means interest rates on many savings accounts and certificates of deposit (CDs) are higher than they’ve been in years.



Some high-yield accounts, especially those offered by online banks, advertise rates of 5% annual percentage yield (APY) or higher. On a $5,000 account balance, 5% APY can result in $250 in interest earnings over the course of a year. That extra cash from interest could help you reach your goals faster or help you pay for an unexpected expense.



<h2 class="wp-block-heading">You may be eligible for a tax break</h2>



If you make pre-tax contributions to a retirement plan such as an IRA, 401(k), or 457 plan, you may already be reducing your taxable income. But you may also qualify for an additional tax break for a portion of your contributions, based on your income.



The&nbsp;<a href="https://www.irs.gov/retirement-plans/plan-participant-employee/retirement-savings-contributions-savers-credit" target="_blank" rel="noreferrer noopener">Retirement Savings Contributions Credit</a>, also known as the Saver’s Credit, offers a credit between 10% and 50% of eligible retirement plan contributions (for a maximum credit of $1,000 for single filers or $2,000 for joint filers).



For tax year 2023, the maximum income for a single filer to qualify for the Saver’s Credit is $36,500 ($73,000 for joint filers).



<h2 class="wp-block-heading">Boost your retirement security</h2>



PERA members are already setting aside money for retirement with every paycheck. Members in the PERA&nbsp;Defined Benefit&nbsp;Plan can count on PERA to provide monthly retirement income for life, but you’ll never regret having more money available in your golden years.



Whether you’re saving in a traditional savings account, an employer-based plan such as a&nbsp;<a href="https://content.copera.org/retirees/peraplus-401-k-457-plans/" target="_blank" rel="noreferrer noopener">PERAPlus 401(k) or 457 Plan</a>, or even a health savings account (HSA) if eligible, additional savings can provide the flexibility to cover expenses that are hard to plan for. That could include costs like health care—one of the biggest (and growing) expenses—in retirement, long-term care, family needs, and housing.



Colorado PERA will be sharing more information and tips for America Saves Week on social media, so be sure to join the conversation on&nbsp;<a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>&nbsp;and&nbsp;<a href="https://www.copera.org/do-you-have-a-savings-plan-for-2023" target="_blank" rel="noreferrer noopener" class="broken_link">Instagram</a>.

America Saves Week: Three Reasons to Save More This Year

Generation X – the group of Americans born between 1965 and 1980 &#8212; is often referred to as the “Forgotten Generation.” It’s a smaller group than both the Baby Boomers that came before and the Millennial generation that followed.



With the oldest members of Generation X soon approaching retirement, it’s important to look at where they stand financially. New <a href="https://www.nirsonline.org/reports/genx/" target="_blank" rel="noreferrer noopener">research from the National Institute on Retirement Security</a> (NIRS) finds that many members of Gen X are struggling to meet retirement savings targets and risk having a significantly lower standard of living when they stop working.



<h2 class="wp-block-heading">Access to employer-sponsored retirement plans</h2>



According to the NIRS researchers, the decline in the number of employers offering defined benefit (DB) pension plans is a major factor in Gen X’s retirement readiness. In 1980, more than 80 percent of workers in the private sector had access to a DB plan, according to the U.S. Bureau of Labor Statistics.



Today, few private employers offer pensions to their workers. Most employees only have the option to save for retirement in employer-sponsored defined contribution (DC) plans like 401(k)s or on their own in individual retirement accounts (IRAs). According to NIRS, just 14 percent of Gen Xers were participating in a DB plan as of December 2020.



The potential challenge of relying solely on DC plans is a person’s retirement income depends on how much they contributed over the course of their working years and the investment gains they may have earned over that time.



Since Generation X was the first generation to enter the workforce when DB plans were on the decline, they’re the first to see the effects of that shift on their finances on a large scale.



<h2 class="wp-block-heading">Generation X’s retirement readiness</h2>



The NIRS researchers found that just over half of Gen Xers participated in an employer-sponsored retirement plan in in 2020. Of those contributing to a private account like a 401(k), the average balance was $129,994. The median account balance, which isn’t skewed by high earners, was $10,000 for individuals and $40,000 for households.



Additionally, 40 percent of Gen Xers have accounts with no balance at all, according to NIRS.



The researchers warn that retirees who don’t have enough savings to live on will have to rely on Social Security, which wasn’t designed as a full income replacement. In 2023, the average Social Security benefit is about $1,700 a month.



It’s not all bad news, however. The youngest Gen Xers are in their early 40s, which are often a person’s prime earning years. That means younger members of the generation still have time to bolster their savings and improve their retirement security.



<h2 class="wp-block-heading">How PERA combines the best of DB and DC plans</h2>



The State of Colorado created PERA in August 1931 and since then, PERA has grown to include DB and DC offerings covering more than 670,000 current and former public employees.



The PERA Defined Benefit Plan is available to all PERA members and is designed to provide lifetime income in retirement. The <a href="https://peraontheissues.com/pera-by-the-numbers-a-closer-look-at-the-2022-annual-report/" target="_blank" rel="noreferrer noopener">average monthly benefit was $3,238</a> in 2022.



Some members have a choice between the PERA DB Plan and the PERA DC Plan, which features a variety of low-cost investment options for members who want to invest their retirement funds on their own. Members can also annuitize their account balance at retirement to convert it to regular monthly income.



PERA also offers the optional <a href="https://www.copera.org/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">PERAPlus</a> 401(k) to all members, and some PERA employers also offer the PERAPlus 457 Plan. Both are low-cost options for setting aside extra money for retirement, and both have Roth options for saving after-tax dollars.



Together, PERA’s defined benefit and defined contribution plans help ensure that Colorado’s public employees have the income they need in retirement, regardless of which generation they’re a member of.

How the Shift Away From Pensions Has Affected Gen X’s Retirement Readiness

The last week of February is America Saves Week. From Feb. 27 to March 2, financial institutions across the country will aim to raise awareness about the importance of saving money and share tips for saving more.



The week comprises five themes:



<ul>
<li>Monday: Saving automatically</li>



<li>Tuesday: Saving for the unexpected</li>



<li>Wednesday: Saving for major milestones</li>



<li>Thursday: Paying down debt is saving</li>



<li>Friday: Saving at any age</li>
</ul>



Whatever the goal, setting money aside for the future is vital to financial security, and recent polling shows it’s something that many Americans continue to struggle with.



<h2 class="wp-block-heading">The state of savings in 2023</h2>



Bankrate has been polling Americans about their emergency savings since 2014. <a href="https://www.bankrate.com/banking/savings/emergency-savings-report/" target="_blank" rel="noreferrer noopener">This year’s survey</a>, which was conducted in December, found less than half of respondents could pay for an emergency expense from their savings, and reliance on credit cards is at an all-time high.



If faced with a $1,000 expense for an emergency room visit or a car repair, 43 percent of people told Bankrate that they would use their savings to pay the expense. Twenty-five percent of people said they would use a credit card, which is the highest percentage since the survey began in 2014.



The Bankrate survey also found that people across generations are concerned about their level of emergency savings — particularly younger generations. Bankrate said 85 percent of Generation Z and 79 percent of Millennials are worried about having enough savings to cover a month’s worth of living expenses, compared to 69 percent of Generation X and 53 percent of Baby Boomers.



When it comes to retirement savings, Americans express similar sentiments. According to the <a href="https://www.fool.com/research/average-retirement-savings/" target="_blank" rel="noreferrer noopener">most recent survey from the Federal Reserve</a>, less than half of respondents nearing retirement age said they felt like they were on track. That survey also found that a quarter of all non-retirees had no retirement savings at all.



<h2 class="wp-block-heading">PERA offers built-in options for additional savings</h2>



Colorado PERA members are already saving automatically for retirement with every paycheck. PERA also offers several options for members who want to set aside even more money.



All PERA members have access to the optional <a href="https://www.copera.org/peraplus-401-k-457-plans" target="_blank" rel="noreferrer noopener">PERAPlus 401(k)</a> to set aside extra pre-tax money each month. Some employers also offer the PERAPlus 457 plan. Both plans feature a variety of investment choices as well as <a href="https://peraontheissues.com/pera-offering-new-lifetime-income-options-to-dc-plan-participants/" target="_blank" rel="noreferrer noopener">lifetime income options</a> to make savings go further in retirement.



America Saves Week is a great opportunity to take stock of your savings and make a plan for saving more. If you’re already enrolled in a PERAPlus plan, <a href="https://www.copera.org/member-login-registration" target="_blank" rel="noreferrer noopener">log in today</a> to check your balance, and consider increasing your contributions if you’re not on track to meet your goals.



Follow Colorado PERA on <a href="https://www.facebook.com/ColoradoPERA/" target="_blank" rel="noreferrer noopener" class="broken_link">Facebook</a>, <a href="https://twitter.com/ColoradoPERA" target="_blank" rel="noreferrer noopener">Twitter</a> and <a href="https://www.copera.org/do-you-have-a-savings-plan-for-2023" target="_blank" rel="noreferrer noopener" class="broken_link">Instagram</a> for more tips during America Saves Week.

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