Average 401(k) balances rose to a record $144,400 in the third quarter, rising 5% from the prior quarter. Meanwhile, average IRA balances climbed to $137,902, and average 403(b) plans grew to $131,200. The report also highlights a potential shift, with a fifth of Gen Z 401(k) participants putting money into Roth versions of their accounts.

TIAA CEO Thasunda Brown Duckett emphasized the importance of building a diversified portfolio and accessing a guaranteed income stream, potentially through annuities. "We have to make sure that the everyday investor in their retirement does not get to a position that they were too far on the risk curve, that they did not have the counterbalance, which is income," Brown Duckett said.

The US economy added 119,000 jobs in September, surpassing expectations, according to a delayed Bureau of Labor Statistics report. However, the unemployment rate rose to 4.4%. The mixed results could perpetuate the uncertainty surrounding the Federal Reserve's upcoming December policy meeting. "This isn't going to change anybody's mind," said David Seif of Nomura.

Major stock indexes underwent a midday reversal that eventually saw them close sharply lower on Thursday. The Nasdaq composite declined more than 2.1%, and the S&P 500 and Dow Jones Industrial Average also fell.

Regulators will run a pilot phase to assess the effectiveness of an evaluation tool designed to help them understand insurance companies' use of AI, according to Iowa Insurance Commissioner Doug Ommen, who spoke during a meeting of a National Association of Insurance Commissioners working group. "We just view that this tool is all part of that process to better understand what it is that companies are doing and what controls are in place," Ommen said.

As more retirees approach age 65 with significant health savings account balances, understanding the rules and opportunities is crucial. HSA assets are highest among those aged 60-64, totaling $19.4 billion. While contributions must stop upon enrolling in Medicare, funds can be used for Medicare premiums. In addition, it's important to recognize that funds can go toward nonmedical expenses, although withdrawals for this purpose will not be tax free.

Converting a traditional IRA to a Roth IRA can offer several tax benefits, including tax-free growth and withdrawals and the ability to avoid required minimum distributions. However, there are certain times to think twice about Roth conversions, including if you expect your tax rate to be lower in the future.