New research shows that funding status has little correlation with a pension fund’s ability to pay its promised benefits, and NCPERS urges policymakers to stop trying to shut down public pensions.
Data and Research
ICI also reports DC plan participants remained committed to investments and contributions.
The first step, AB says, is to replace TDFs from recordkeepers with open architecture, next-gen TDFs.
Sixty-four percent have financial goals.
In an issue brief, researchers for the Center for Retirement Research at Boston College discuss plan partitions, benefits cuts, subsidized loans and tax payer support.
More Gen Xers say they regret spending and accumulating debt than previous generations, a survey found.
For Millennials, student loan debt, credit cards and health care expenses all measured equally as causes for “extreme” amounts of financial stress, a survey found.
Only half of retirees with debt are confident they will be able to live the lifestyle they want, but 70% of retirees without debt are confident.
One-third would sacrifice retirement benefits.
In light of a stronger focus on fiduciary responsibilities, more than three-fourths of higher education plan sponsors have implemented an investment policy statement, compared to 60% in 2015, according to Transamerica data.
Plan sponsors should be aware that many participants have assets invested with providers that do not serve their current plan, which has implications for measuring readiness.
The group says it has considered moving from a DB plan for clergy to a DC plan and concluded that doing so “would be irresponsible.”
"Our survey results reinforce the importance of setting goals and monitoring plans to balance … emotions,” says Rich Ramassini, CFP, director of strategy for PNC Investments.
Results from the firm’s product use by one plan sponsor found that upon consolidation, workers' median plan account balance increased by 46% and the combined future value of their preserved savings was more than $3 million at normal retirement age.
Creating open MEPs, encouraging the use of lifetime income products and removing impediments to employers maintaining DB plans are just a few of Mercer’s suggestions.
Yet, retirement savings accumulators, especially younger ones, are seeking help more than five years ago, research finds.
A report by the Congressional Budget Office notes that different measures produce different results and it offers a framework for further analysis of retirement income.
This is a 2.25% increase from $97,700 in the previous quarter—and a 31.27% increase from the average $76,100 balance five years ago.
A Fidelity analysis also found more than one-quarter of 401(k) participants increased their contribution rates since last year.
Nearly one-third (32%) of survey respondents said if this provision of tax reform is passed, it will cause them to save less in their retirement accounts.