For the 10th consecutive year, their top financial resolution for the New Year is to save more, Fidelity learned in a survey.
Data and Research
Of the 66% who responded in favor of the plans, 55% stated the likelihood of lowered costs for themselves is their top reason for supporting MEPs, while 54% said they were interested in reduced fees for employees.
The Plan Sponsor Council of America’s 61st Annual Survey of Profit Sharing and 401(k) Plans finds the most used benchmarks for retirement plan success remain participation and deferral rates.
The availability of Roth contributions has doubled in the last decade, and more plan sponsors are using a default deferral rate with automatic enrollment that is higher than 3%, a Plan Sponsor Council of America survey found.
At the time of an analysis from the Center for Retirement Research (CRR) at Boston College, 62% of eligible workers were participating, and 93% of contributing participants had not changed their default deferral rate of 5%.
According to John Hancock data, helping employees reduce their financial worries is well worth employer’s time and attention.
And 401(k) providers are the top source for financial advice.
On average, they offer 27 core investment options, according to ICI and BrightScope
ESOP participants have an average retirement balance of $170,326, more than twice the $80,339 that other workers have saved
However, a survey finds retirees with a guaranteed income stream from a pension or annuity are able to spend more.
Of the 1,544 employees surveyed by Corporate Insight, a mere 221 (or 14%) indicated that their employer offers programs or resources to help improve financial well-being.
In addition, state-backed retirement savings plans can assist with providing quality savings opportunities to working Latinos who are not covered by an employer-sponsored retirement plan.
Half of Americans surveyed by HSA Bank are using savings accounts to save for health care expenses in retirement, and 47% plan to rely on their 401(k) plan.
The Society of Actuaries says individuals must first understand all the risks related to retirement so they can take steps to manage them.
Workers facing debt payments must also prioritize long-term savings, as difficult as this may seem.
A 401(k) match and health insurance are the benefits they value the most.
Forty-two percent of consumers in a LIMRA SRI study said they were open to the idea of annuities, and 61% say having enough money to last through retirement years is their single most important objective for their assets in retirement.
Sixty-two percent of Americans polled are confident they will be able to maintain their savings as they transition into retirement, but only 45% think their savings will last throughout their retirement.
When workers are continuously engaged in a financial wellness program, they increase their retirement contribution rates by 38%, and the average age at which workers could retire and replace 80% of their income moves from 68.5 to 66.96, according to Financial Finesse.
MassMutual urges pre-retirees to calculate their projected income and expenses in retirement because although retirement plan balances are healthier than they were five years ago, they may not necessarily be sufficient to support the income needed for so many early retirements.