Data and Research
A BlackRock study found many plan sponsors are planning to add more automatic features, ESG options and active management strategies to their plans.
Forty-seven percent of DC plan participants say the pandemic has had an adverse effect on their retirement savings.
The activity of TDFs contrasted with that of other mutual funds, while CITs increased market share of target-date strategies.
More employees contributed to health savings accounts, and employees increased contributions to their HSAs in 2020, according to Bank of America data.
Budgeting, work-life balance and stress management were among high priorities cited by employees surveyed.
Some people have not recovered from economic losses caused by the pandemic and need help from employers, retirement plan providers and other sources to build a financial cushion.
Ninety percent of participants who are aware of environmental, social and governance options in their plan’s lineup say they invest in them.
Participant balances in employer-sponsored retirement plans have never been higher, yet millions of Americans lack access to tax-advantaged savings opportunities in their workplace.
The percentage of plans in the healthy ‘green’ zone increased slightly; however, the pandemic had an effect on certain industries’ short- and long-term assumptions.
Pension plans still felt the effect of lower rates on liabilities, but strong equity markets helped the gain in assets outpace the gain in liabilities.
Fidelity’s latest analysis shows people often underestimate the potential cost of health care in retirement, even after two decades of watching health care costs increase year-over-year.
The three professors say their research shows the importance of transparency.
Plan sponsors can respond by simplifying fund menus and providing access to professional help; many are already using managed accounts.
Plus, their confidence in Medicare and Social Security benefits is at an all-time high.
Employers are focusing on ways they can improve outcomes for their participants, including by offering guaranteed lifetime income solutions and helping workers create a retirement income plan.
A boost in funded status and funding relief included in the American Rescue Plan Act have sponsors breathing a sigh of relief.