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    40% of workers are behind on retirement planning. Not saving earlier was the biggest mistake

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    Four in 10 American workers are behind on retirement planning and savings, according to a new CNBC survey.
    Not starting earlier tops Americans’ greatest financial regrets.
    “If you do less at 30, you’ll still have more at 60 than if you did more at 50,” one expert says.

    Thomas Barwick

    Molly Richardson, 35, regularly contributes to her 401(k) plan, but the structural engineer says she isn’t too worried about retirement yet.
    “It’s always something I felt like I could wait until I’m 50 to figure out,” she said.

    Like many other working adults, Richardson says she has more pressing expenses for now, such as the mortgage on her home in Jacksonville, Florida, car loans and student debt.
    Still, the married mother of one admits she doesn’t have a clear savings goal once those other financial obstacles are out of the way.
    “It’s hard to estimate how much we are actually going to need,” she said. “There are question marks.”

    In fact, 4 in 10 American workers — 40% — are behind on retirement planning and savings, largely due to debt, insufficient income or getting a late start, according to a new CNBC survey, which polled more than 6,600 U.S. adults in early August.
    Older generations closer to retirement age are more likely to regret not saving for retirement early enough, the survey found: 37% of baby boomers between ages 60 and 78 said they felt behind, compared to 26% of Gen Xers, 13% of millennials and only 5% of Gen Zers over the age of 18.

    “There are so many individuals, young, mid-career and deep into their career, that are not saving enough for a healthy and secure retirement,” said Jacqueline Reeves, the director of retirement plan services at Bryn Mawr Capital Management.

    By some measures, retirement savers, overall, are doing well.
    As of the second quarter of 2024, 401(k) and individual retirement account balances notched the third-highest averages on record and the number of 401(k) millionaires hit an all-time high, helped by better savings behaviors and positive market conditions, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans.
    The average 401(k) contribution rate, including employer and employee contributions, now stands at 14.2%, just below Fidelity’s suggested savings rate of 15%.

    And yet, there is still a gap between what savers are putting away and what they will need once they retire.
    Although many employees with a workplace plan contribute just enough to take advantage of an employer match, “9% [considering a typical 5% savings rate and 4% match] mathematically speaking, will not provide enough in that piggy bank,” Reeves said.
    “They call it a ‘standard safe harbor match’ for a reason,” she added. “Further in our career, we should be saving 15% to 20%.”

    I don’t think you ever feel completely caught up.

    Lisa Cutter
    Higher education administrator

    “I don’t think you ever feel completely caught up,” said Lisa Cutter, 56, from Terre Haute, Indiana.
    Cutter, who works as an administrator in higher education, explained that it took a while before she could put anything at all toward long-term savings.
    “When I first entered the workforce, I was a classroom teacher and I had no money; I was broke,” Cutter said.
    Now Cutter, who is a single mom, has to prioritize her savings. She relies on the retirement tools and calculators that come with her employer-sponsored plan to stay on track.
    “I would probably like to retire around 67,” she said.

    The retirement savings shortfall

    Other reports show that a retirement savings shortfall is weighing heavily on Americans as they approach retirement age.
    LiveCareer’s retirement fears survey found that 82% of workers have considered delaying their retirement due to financial reasons, while 92% fear they may need to work longer than originally planned. 
    Roughly half of Americans worry that they’ll run out of money when they’re no longer earning a paycheck — and 70% of retirees wish they had started saving earlier, according to another study by Pew Charitable Trusts.
    And among middle-class households, only 1 in 5 are very confident they will be able to fully retire with a comfortable lifestyle, according to recent Retirement Outlook of the American Middle Class report by Transamerica Center for Retirement Studies. The middle class is broadly defined as those with an annual household income between $50,000 and $199,999.
    “America’s middle class is navigating the turbulent post-pandemic economy and high rates of inflation,” said Catherine Collinson, CEO and president of Transamerica Institute. “They are focused on their health and financial well-being, but many are at risk of not achieving a financially secure retirement.”

    Not saving for retirement earlier is great regret

    “If you do less at 30, you’ll still have more at 60 than if you did more at 50,” said Bryn Mawr’s Reeves.
    More than any other money misstep, 22% of Americans said their biggest financial regret is not saving for retirement early enough, according to another report by Bankrate. 
    But there’s no easy way to make up for lost time.
    “Inflation and high prices are cited as the biggest obstacle to progress in addressing our financial regrets,’ said Greg McBride, chief financial analyst at Bankrate.com. “Don’t expect an overnight fix.”
    There are, however, habits that can help.

    How to overcome a savings gap

    Saving for retirement can be “automated through payroll deduction, direct deposit and automatic transfers,” McBride said. “Start modestly and after a couple of pay periods, you won’t miss what you don’t see.”
    In addition to automatic deferrals, Reeves recommends opting into an auto-escalation feature, if your company offers it, which will automatically boost your savings rate by 1% or 2% each year.
    Savers closer to retirement can even turbocharge their nest egg.
    “Everybody hits 50 and is like, ‘wait a minute,'” Reeves said, so “there are other opportunities layered on, because many people are caught at that juncture.”
    Currently, “catch-up contributions” allow savers 50 and older to funnel an extra $7,500 into 401(k) plans and other retirement plans beyond the $23,000 employee deferral limit for 2024.
    It’s also important to create a separate savings account for emergency money, Collinson advised, “which will help you avoid tapping into your retirement account when disaster strikes.”
    Similarly, make sure you are properly insured and employable by staying up to date on the latest technology and training, she added, to avoid potential income disruptions.
    “The single most important ingredient is access to meaningful employment throughout your working years,” Collinson said.
    Most experts recommend meeting with a financial advisor to shore up a long-term plan. There’s also free help available through the National Foundation for Credit Counseling.  
    REGISTER NOW! Join the free, virtual CNBC’s Women and Wealth event on Sept. 25 to hear from financial experts who will help fund your future — whether you are returning to the workforce, starting a new career or just looking to improve your relationship with money. Register here. More

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    Relocating retirees want lower costs of living and better lifestyles. Moving abroad may be the answer

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    As seniors aim to reduce living expenses and boost their quality of life, settling abroad could be appealing, financial experts say.
    More than 450,000 retirees were receiving Social Security benefits outside the U.S., as of December 2023, up from fewer than 250,000 retirees in December 2003.
    Retirees could save on housing and health care, but need to consider several factors before moving overseas.

    Mario Martinez | Moment | Getty Images

    Seniors looking to reduce expenses while also boosting their quality of life may find the idea of settling abroad appealing, financial experts say.
    To that point, nearly one-third of retirees have relocated either domestically or outside the country after leaving the workforce, according to a new CNBC survey, which polled more than 6,600 U.S. adults in early August.

    Some of the top reasons for retiree moves were a lower cost of living, a more comfortable lifestyle or better weather, the survey found.   

    More from Your Money:

    Here’s a look at more stories on how to manage, grow and protect your money for the years ahead.

    While many older Americans have opted for a less expensive city or state, others are choosing to spend their golden years abroad. 
    More than 450,000 retirees were receiving Social Security benefits outside the U.S., as of December 2023, according to the latest Social Security Administration data. That’s up from less than 250,000 retirees in December 2003.   
    “Each year, there are more and more,” said certified financial planner Leo Chubinishvili with Access Wealth in East Hanover, New Jersey. “And I think that will continue to grow.” 

    Despite cooling inflation, higher costs are still prompting significant changes to retirement plans, a 2024 survey from Prudential Financial found.

    Meanwhile, roughly 45% of U.S. households are predicted to fall short of money in retirement by leaving the workforce at age 65, according to a Morningstar model that analyzed spending, investing, life expectancy and other factors. 
    But some retirees can stretch their nest egg by living somewhere with a lower cost of housing, health care and other expenses, depending on their needs, Chubinishvili said.

    Many who move want ‘cultural exchange’

    Some retirees are also motivated to move abroad for the “cultural exchange,” said CFP Jane Mepham, founder of Austin, Texas-based Elgon Financial Advisors, where she specializes in international planning.  
    “There’s a sense of adventure,” she said. “People really want to travel.”
    However, retiring overseas does require advanced planning. For example, you’ll need to understand visa and residency requirements, local laws, international taxes and other logistics.
    Plus, you’ll need to research whether you can get into your new country’s health system or whether you’ll need to purchase private insurance. Medicare won’t cover you abroad, Mepham said.

    Consider your ‘life priorities’

    “For many people, [living abroad] could be a money-saving option, depending on how they want to live their lives,” said CFP Jude Boudreaux, partner and senior financial planner with The Planning Center in New Orleans, who works with several expat clients.
    But other factors, like proximity to aging parents or grandchildren, can weigh heavily on the decision, said Boudreaux, who is also a member of CNBC’s Financial Advisor Council.
    To that point, of retirees who moved, some 36% wanted to be closer to family, only slightly lower than the 37% seeking a lower cost of living, according to the CNBC survey.

    But your retirement, including a choice to live abroad, could change later, depending on your circumstances, he said.
    “Everybody makes decisions based on their life priorities,” Boudreaux said. “Being clear about that helps people make good choices.”
    REGISTER NOW! Join the free, virtual CNBC’s Women and Wealth event on Sept. 25 to hear from financial experts who will help fund your future — whether you are returning to the workforce, starting a new career or just looking to improve your relationship with money. Register here. More

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    Nvidia is a no-go for over half of this ultra-rich club’s members with assets worth $165 billion

    Over half of Tiger 21’s members don’t invest in Nvidia, according to a recent asset allocation report released by the network of ultra high net worth investors and entrepreneurs.
    Of the 43% members who have invested in Nvidia, most do not intend to add more stock, amid worries that its has already run up too high.
    Nvidia shares slumped 9.5% overnight, wiping about $280 billion of its market cap, amid a broad sell-off in U.S. markets.

    Sopa Images | Lightrocket | Getty Images

    More than half of Tiger 21’s members don’t invest in Nvidia, according to a recent asset allocation report released by this network of ultra-high-net-worth investors and entrepreneurs.
    The network’s second-quarter asset allocation report revealed that 57% of its members are not invested in chip darling Nvidia, with a bulk of the members who have chosen to stay away from the stock saying they do not intend to start a position in the company.

    “While Nvidia is the undisputed leader in AI at the moment, no company’s growth lasts forever, and competitors often catch up, leading to a recalibration of the market,” said Michael Sonnenfeldt, chairman of the ultra-rich club. Its members’ personal assets are collectively worth over $165 billion, according to data provided by Sonnenfeldt.
    Members of the group, which was set up in 1999 by Sonnenfeldt, share advice with each other on wealth preservation, investments and philanthropic endeavors.

    Tiger 21 has 123 groups in 53 markets. The network has over 1,450 members.
    Of the 43% members who have invested in Nvidia, most do not intend to add more stock, amid worries that it has already run up too high.
    Those fears appear to have been well-founded with Nvidia’s stock tanking 9.5% overnight, wiping about $280 billion of its market cap, amid a broad sell-off in U.S. markets.

    A sizable 43% of the club’s members surveyed also expect Nvidia’s success to not last the next decade.
    Some members have chosen to avoid technology altogether, and hence there’s no Nvidia in their portfolio, preferring real estate or other sectors, said Sonnenfeldt.
    “For others, it is due to the nature of tech investing today. Tiger 21 members watched Tesla rise only to now have almost all major auto manufacturers offer an EV, so while Nvidia is the leader today, some Tiger 21 members believe it is only a matter of time before the competition catches up,” he said.
    Sonnenfeldt also said that the club’s members are more focused on preserving wealth rather than chasing high returns.
    “They could be avoiding Nvidia due to its volatility and the risks associated with tech investments, despite its impressive growth,” he said.
    Nvidia, which has been dubbed as ‘the world’s most important stock,’ rode the artificial intelligence boom to a $3 trillion market cap earlier this year, surging almost nine-fold since the end of 2022. 
    The company’s meteoric growth, however, stalled a bit this summer. On Aug. 7, the stock tumbled about 27% to trade below its all-time high hit in June.
    Nvidia led semiconductor stocks lower amid a sell-off on Wall Street on Tuesday, with shares continuing their slide in extended trading, down 2%.
    Sonnenfeldt is optimistic about the wider AI industry though. “The potential of AI seems to be one of — if not the — most investible themes in all of financial history,” said Sonnenfeldt.
    According to Tiger 21’s recent member allocation report, the bulk of its members’ allocation is in private equity, at 28%. Real estate takes up 26% of members’ portfolios in spite of high interest rates, while public equities make up 22% of their asset allocation. More

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    Op-ed: A ‘retirement disconnect’ has swept across multiple generations of Americans

    YOUR GUIDE TO NAVIGATING YOUR FINANCIAL FUTURE

    A “retirement disconnect” has taken root among Americans across all demographics, from Gen Z to boomers, writes SurveyMonkey CEO Eric Johnson.
    Most workers would like to spend their retirement traveling, pursuing hobbies, and spending time with family.
    But when asked by CNBC and SurveyMonkey for a new study what they realistically expect in retirement, expectations have been lowered.

    Charday Penn | E+ | Getty Images

    Vibecession, quiet quitting, and now … the retirement disconnect? It’s not entirely surprising that the current workforce’s disillusionment with the status quo extends to even how they think about life after work. The days of dedicating half a century to a single company and retiring comfortably with a gold watch are long gone. A new CNBC|SurveyMonkey study illuminates this “retirement disconnect” and suggests that the fundamental idea of retirement may be on the cusp of an evolution. 
    Today’s workers envision a starkly different retirement from that of their predecessors. They anticipate a considerably more challenging path to financial security. These sentiments resonate across generations —even Gen Z workers (the latest to join the workforce) believe the still-working Gen X and boomers will have an easier path to retirement, while Gen X and boomers say the same about older generations. 

    The rising cost of living, stagnant wages, and lackluster savings are giving workers a reason to be doubtful that the traditional idea of retirement will be achievable in their lifetimes. 

    Traditional retiree dreams, but lowered expectations
    Across all demographics, the top three ways workers would like to spend their retirement include traveling, pursuing hobbies, and spending time with family. Working for supplemental income and starting a business are the least popular options.
    And yet, when asked what they realistically expect to do in retirement, a persistent gap emerges. More than twice as many respondents believe they’ll need to work for supplemental income (31%) than ideally want to (14%). Workers also believe they’ll need to care for family members in retirement at a higher rate (31%) than ideally want to (24%). This is true for both men and women workers; 24% of both say they’d ideally spend retirement caring for family, and 28% of men and 33% of women realistically expect to do so. 
    This gap between idealism and reality may be less surprising when considering that four in ten workers are behind on planning for retirement, with nearly half (48%) citing both debt and not having enough income as the top two reasons. In fact, one in five (21%) current retirees report having no retirement savings. With workers expecting a harder road to financial security than their predecessors and current retirees, it’s understandable to adjust expectations accordingly. 
    Retirement planning shortfalls, working longer
    Strikingly, even though 40% of workers report being behind on retirement planning, 71% are confident they’ll meet their retirement goals. This may be because more than half of workers (53%) expect to work in retirement. Of that 53%, 27% state they expect to work because they’ll need the supplemental income.

    From Gen Z to boomers, workers across demographics are consistent about a few things: that their retirement will look different from their parents’ retirement (73%) and will be harder to achieve (82%), and that they are concerned they won’t be able to afford to fully stop working (69%). 
    This collective shift in perspective could pave the way for a reimagined retirement that appeals to all workers across generations. The concept of retirement may shift from leaving the workforce entirely to transitioning into different roles or reduced hours. Business leaders must adapt to this new reality, recognizing that the next wave of retirees may not conform to the conventional idea of retirement and that can create opportunities for businesses to harness the strength of a multi-generational workforce. 
    The retirement disconnect is a complex societal challenge without an easy solution. However, the data makes it clear: workers are actively grappling with the evolving concept of retirement and its implications for their circumstances. The traditional idea of retirement is fading, replaced by something more fluid and dynamic.
    —By Eric Johnson, CEO, SurveyMonkey
    REGISTER NOW Join the free, virtual CNBC’s Women and Wealth event on September 25 to hear from financial experts who will help fund your future-whether you are returning to the workforce, starting a new career, or just looking to improve your relationship with money. Register here. More

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    Wednesday’s big stock stories: What’s likely to move the market in the next trading session

    Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, U.S., August 30, 2024. 
    Brendan McDermid | Reuters

    Stocks @ Night is a daily newsletter delivered after hours, giving you a first look at tomorrow and last look at today. Sign up for free to receive it directly in your inbox.
    Here’s what CNBC TV’s producers were watching as the three major averages started September on a losing note, and what’s on the radar for the next session.

    Nvidia

    On Tuesday, Nvidia lost more market value than any other stock in a single day: $279 billion. That’s a big number. CNBC’s man at the NYSE Bob Pisani notes this is the fifth time the stock has lost more than $200 billion in market cap in a single day, but Tuesday’s action takes the cake.
    The stock lost 9.5%.
    It is now down 23.3% since June 20. It is up, however, 118% in 2024.
    The stock is down another 2% after hours. The action comes after Bloomberg reported that the Department of Justice is taking a closer look at antitrust concerns for Nvidia.

    Stock chart icon

    Nvidia’s performance in the past five days

    VanEck Semiconductor ETF

    Dividend stocks

    This part of the market held up OK on Tuesday. The SPDR S&P Dividend ETF (SDY) fell 0.4% on Tuesday, and hit a 52-week high early in the session.
    Some might call the dividend yield on this ETF low. It’s 2.4% as of Tuesday night.

    Stock chart icon

    SPDR S&P Dividend ETF (SDY) one-day performance

    Utilities

    The S&P Utilities Sector finished flat on Tuesday, but it hit a new 52-week high earlier in the day.
    The sector is paying a 3% dividend, as of Tuesday’s close.
    When interest rates go down, some investors look to utilities which generally pay a decent dividend.
    If you look at the utilities sector going back to March 2022 — as rates started to rise — it is up 7% since then.
    The Relative Strength Index of the sector is 71. Some traders might think this reading suggests the utilities sector is overbought, but it doesn’t necessarily mean that it’s guaranteed to fall.
    In the last month, NRG Energy is the sector’s top performer. It’s up 14% in that period.
    PG&E is up 8.3% in a month.
    Constellation Energy is up 6.4% in a month.
    At the bottom of the pile: American Water Works is off 2.6% in the past month, while AES is down 2.2%. Evergy is down nearly 0.8% in a month.

    Mortgage applications

    Stock chart icon

    Champion Homes in the past month

    Big Oil

    The S&P Energy sector was a bit of a downer Tuesday, losing 2.4%. It is now 9.4% from the April high.
    APA was the biggest drag, down 6% on Tuesday. 
    EOG Resources and Halliburton were down 4% in the session.
    Exxon Mobil dropped 2.1% during the day. Chevron fell 2.2% and ConocoPhillips fell 3.46%.
    CNBC’s Pippa Stevens will pick up coverage on Wednesday.
    Brent and WTI are both down 4% in a month.
    The S&P Energy sector is flat in that same time period.
    Oneok and Targa are up 15% in a month. Williams Companies is up 8% in that time.
    APA, Halliburton and SLB are the laggards: All three are down about 6% in a month.

    Ahead of the NFL

    CNBC’s Contessa Brewer will look at the gambling stocks on Wednesday as we close in on the first game of the football season.
    The Kansas City Chiefs play the Baltimore Ravens on Thursday at 7 p.m. ET on NBC and Peacock.
    DraftKings is down 22% since Feb. 12, the day after the Super Bowl. The stock is down 32% from the March high.
    Flutter is 3% in the same time period. The stock is 9% from the March high.
    MGM Resorts is down 22% since then. Caesars Entertainment is down 19% in that time period. MGM is 25% from the April high, and Caesars is down 35% from the September high.
    By the way, on Thursday’s “Squawk Box,” CNBC will release a much-awaited list of how much NFL teams are worth. Don’t miss it. It’s going to be big.

    Dollar Tree reports

    The report comes out before the bell Wednesday morning.
    Dollar General reported last week, and it wasn’t pretty.
    Dollar General shares tanked after the company issued its results last Thursday. The stock was up 1% Tuesday, but it’s still down about 33% in a week.
    Dollar Tree is 45% from the March high. Shares are down 14% in a week. More

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    Younger retirees can face a ‘phantom tax’ on Marketplace health insurance — here’s how to avoid it

    Many younger retirees rely on Marketplace health insurance before age 65, which has lower monthly premiums thanks to boosted tax breaks through 2025.
    But retirees can face a “phantom tax” without proper planning, according to Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo.
    Boosting income via earlier Social Security payments or Roth individual retirement account conversions could phase out Marketplace tax credits.

    Hero Images | Getty Images

    Since most Americans aren’t eligible for Medicare before age 65, many younger retirees rely on Marketplace health insurance, which offers lower monthly premiums through the end of 2025 thanks to boosted tax breaks. But retirees can face a costly tax surprise without proper planning, experts say.
    As of open enrollment 2024, more than 5.1 million Americans aged 55 to 64 had Marketplace coverage, up from roughly 3.4 million in 2021, according to data from the Kaiser Family Foundation.

    In 2021, Congress temporarily enhanced the premium tax credit, which allows Marketplace enrollees to lower monthly premiums upfront or claim the tax break when filing their return. The legislation covered 2021 and 2022, but lawmakers extended that benefit through 2025.  
    With Marketplace benefits tied to earnings, younger retirees can leverage lower premiums after leaving the workforce. But some are subject to a “phantom tax” when income rises, according to Tommy Lucas, a certified financial planner and enrolled agent at Moisand Fitzgerald Tamayo in Orlando, Florida.
    More from Personal Finance:Biden may start forgiving student debt in OctoberWorking 10-to-4 is the new 9-to-5, traffic data showsMarketplace insurance may get more expensive — unless Congress extends this tax break
    “These are very valuable credits,” and several financial moves in retirement could impact them, Lucas warned. “You have to be extremely careful.”

    How the premium tax credit works

    Before 2021, households with income between 100% and 400% of the federal poverty level were eligible for the premium tax credit. But the American Rescue Plan Act temporarily removed those limits and capped premiums at 8.5% of income amid the pandemic.

    Calculating premium tax credit eligibility can be complicated. It’s based on the difference between a benchmark premium — the cost of the second-lowest-cost silver plan available in an area — and a maximum contribution based on a percentage of income. 

    Plus, “changes in reporting circumstances should be reported immediately,” to make necessary adjustments, said CFP Jim Guarino, managing director at Baker Newman Noyes in Woburn, Massachusetts.
    Otherwise, you could overpay or underpay your Marketplace premiums, which are ultimately reconciled on your tax return, he added.   

    Common premium tax credit issues 

    Depending on income, the premium tax credit can save eligible younger retirees hundreds or even thousands per year. But higher income can phase out eligibility, experts say.  
    “The big one,” in terms of affecting eligibility, is claiming Social Security at age 62 because your entire payment, including the nontaxable portion, counts toward the eligibility calculation for the premium tax credit, Lucas said.  
    If you’re claiming the premium tax credit, long-term projections show it’s generally better to wait until at least age 65 to claim Social Security, he said.

    The same issue can occur when boosting income via so-called Roth individual retirement account conversions, which transfer pretax or nondeductible IRA funds to a Roth IRA for future tax-free growth.
    But with several years until required minimum distributions, you could still implement the strategy later, Lucas said.  
    “The name of the game, ultimately, is paying minimum taxes, not just in one year or two years, but over your projected lifespan,” he added.  More

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    Biden may start forgiving student debt in October

    President Joe Biden may try to forgive student debt again as early as next month, in a sweeping redo effort that could impact tens of millions of Americans.
    The relief package is almost certain to face legal challenges.

    President Joe Biden announces a new plan for federal student loan relief at Madison Area Technical College Truax Campus, in Madison, Wisconsin, on April 8, 2024.
    Kevin Lamarque | Reuters

    President Joe Biden may try to forgive student debt again as early as next month, in a sweeping redo effort that could impact tens of millions of Americans.
    The Biden administration’s attempt to deliver the aid could come roughly 14 months after the Supreme Court blocked it from carrying out its first student loan forgiveness plan. Just hours after the justices announced their ruling in June 2023, Biden vowed to find a new way to reduce or eliminate people’s education debt.

    Despite the Republican-led legal challenges that have so far stymied the president from implementing wide-scale student loan relief, his administration has still managed to cancel more of the debt than any other before it.
    Mainly through fixes to long-troubled loan relief initiatives, the Biden administration has now approved nearly $169 billion in loan forgiveness for roughly 4.8 million people.
    Its new plan is expected to reach at least 25 million more people.

    Relief could come as soon as next month

    4 groups of borrowers expected to qualify

    With the hope that this aid package survives the inevitable next round of legal challenges, the Education Department revised its forgiveness plan to be more targeted than its first.
    In its email to borrowers, the department lists four categories of eligibility. Those are:

    Borrowers who owe more than they did at the start of repayment.
    Those who entered repayment on their undergraduate loans on or before July 1, 2005, or, if they have graduate loans, on or before July 1, 2000.
    People who are already eligible for student loan forgiveness under one of the government’s existing programs but just haven’t yet applied.
    Students from “low-financial value” programs.

    Republicans may try again to stop relief plan

    For critics of broad student loan forgiveness, Biden’s new plan looks a lot like his first.
    After Biden touted his revised relief program, Missouri Attorney General Andrew Bailey, a Republican, wrote on X that the president “is trying to unabashedly eclipse the Constitution.”
    “See you in court,” Bailey wrote.
    Missouri was one of the six Republican-led states — along with Arkansas, Iowa, Kansas, Nebraska and South Carolina — to bring a lawsuit against Biden’s first sweeping debt relief effort.

    The red states argued that the president overstepped his authority, and that debt cancellation would hurt the bottom lines of lenders. The six conservative Supreme Court justices agreed with them.
    Once the Biden administration publishes its new student loan forgiveness plan in October, more legal challenges are inevitable, Kantrowitz said.
    “Lawsuits seeking to block the final rule will follow soon after it is published,” he said.
    A recent Supreme Court ruling could also make it harder for Biden’s revised plan to survive those broadsides.
    The high court in late June overruled the so-called Chevron Doctrine, a 40-year-old precedent that required judges to defer to a federal agency’s interpretation of disputed laws. The 6-3 ruling, which split the conservative-majority court along ideological lines, is expected to undermine the federal government’s regulatory power. More

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    ‘Rush’ hour isn’t what it used to be. Working 10-to-4 is the new 9-to-5, commuting data shows

    “Rush” hour isn’t what it used to be.
    Commuters are going in later and leaving earlier, according to traffic data.
    With more flexible work arrangements, going to the office for only part of the day, or “coffee badging” is now common.

    Afternoon commuters sit in traffic on southbound Interstate 5 near downtown San Diego on March 12, 2024.
    Kevin Carter | Getty Images

    “Rush” hour isn’t what it used to be.
    As more commuters settle into flexible working arrangements, fewer workers are making early morning or early evening trips compared to pre-pandemic traffic patterns

    The traditional American 9-to-5 has shifted to 10-to-4, according to the 2023 Global Traffic Scorecard released in June by INRIX Inc., a traffic-data analysis firm.

    Midday trips are the new normal

    “There is less of a morning commute, less of an evening commute and much more afternoon activity,” said Bob Pishue, a transportation analyst and author of the report. “This is more of the new normal.”
    Now, there is a “midday rush hour,” the INRIX report found, with almost as many trips to and from the office being made at noon as there are at 9 a.m. and 5 p.m.

    Also, commuters have all but given up on public transportation. Ridership sank during the pandemic, Federal Reserve Bank of St. Louis data shows, and never fully recovered.
    The result is a surge in traffic congestion throughout the peak midday and evening hours, according to Pishue.

    “Pre-Covid, the morning rush hour would be a peak and then the evening peak would be much larger,” he said, describing two apexes with a valley in between. “Now, there is no valley.”

    Flexibility allows for ‘coffee badging’

    “Employees have become accustomed to the flexibility of working from home and may only come to the office when absolutely necessary,” said David Satterwhite, CEO of Chronus, a software firm focused on improving employee engagement.
    “That means they may jump out early to catch a train home, come in late or pop in for one meeting and then leave,” Satterwhite added.
    Also known as “coffee badging,” the habit of only going to work for a few hours a day has become widely accepted, or at least tolerated, other recent reports show.
    More than half — 58% — of hybrid employees admitted to checking in at the office and then promptly checking out, according to a separate 2023 survey by Owl Labs, a company that makes videoconferencing devices.
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    “We used to call it the jacket-on-the-back-of-the-chair syndrome,” said Lynda Gratton, professor of management practice at London Business School.
    Whether a company has a strict return-to-office mandate or some variation of a hybrid schedule, “organizations need to be clear about what the deal is,” she said. “An individual employee can decide whether they want the deal or not.”
    However, because most people say they don’t want to come into the office because of the commute, coffee badging is the least successful type of compromise, Gratton added. “That is the worst of all worlds, they are still doing the commute but not putting in the hours at the office.”

    Employee burnout shows

    In part, workers are wrestling with employee burnout, and their level of commitment has taken a hit.
    After mostly trending up for years, workplace engagement has flatlined.
    Now, only one-third of full- and part-time employees said they are engaged in their work and workplace, while roughly 50% are not engaged, which can also be seen in the rise of “quiet quitting.” The rest, another 16%, are actively disengaged, according to a 2023 Gallup poll released earlier this year.
    Not engaged or actively disengaged employees account for approximately $1.9 trillion in lost productivity nationwide, Gallup found.

    These days, employees are more likely to consider work/life balance, flexible hours and mental health support over career progression, other reports also show. And fewer want to spend any more time at the office than they already do.
    If the ability to work from home was taken away, 66% of workers would immediately start looking for a job that offered more flexibility, Owl Labs found — and a bulk of those employees, roughly 39%, would promptly quit.
    “What we need to get to is a clearer description of how is it you are at your most productive, and that requires a senior team who are seeing this as an opportunity to redesign work and not simply responding to what happened during the pandemic,” Gratton said.
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