The percentage of employers that default participants at a 6% deferral rate or higher more than doubled in the past decade to 19%, an analysis from Fidelity finds.
Data and Research
Younger Baby Boomers and Gen Xers are the most stressed about retirement, a Bankrate.com survey found.
Their primary reasons are financial and to fight boredom
TIAA supports offering lifetime income options and makes other plan administrative and design suggestions to alleviate plan sponsors’ concerns about their employees’ retirement outlook.
A report warns about the “troubling lack of knowledge about debt” among all age groups in the U.S., but especially among young adults.
Preparing participants financially to be able to retire beat out reducing plan costs as plan sponsors' top concern in this year's Fidelity Investments Plan Sponsor Attitudes Study.
“Need the money” (87%) and “to save more for retirement” (84%) are the most commonly selected reasons older workers are working or looking for work, and 9% indicated they need to maintain their health insurance, according to an AARP study.
If the hourly wage gap between college and high school graduates continues to grow at its current pace, the impact would reverberate into retirement, research from the Urban Institute suggests.
While 27% of Millennial Americans allocate more cash towards coffee than retirement savings, most save an average of $480 per month on retirement.
A study finds employees with access to employer-sponsored plans are most likely to indicate retirement readiness, and the IALC suggests plan sponsors increase education.
Researchers’ analysis of data from the current Consumer Bankruptcy Project suggests that financial struggles, namely a decline in income, was a leading reason for older Americans’ bankruptcies.
While most women surveyed want to grow their investments in retirement, they worry more than men about the risk involved and think they’ll need to adopt a conservative investing style.
This makes a buyout or a significant risk transfer two possibilities they could pursue, according to RiskFirst.
A report from Bank of America Merrill Lynch shows employees who do not feel financially well are most concerned about shorter-term financial goals, whereas employees who do feel financially well are most concerned about long-term goals.
Bank of America Merrill Lynch’s 2018 Workplace Benefits Report also finds men and women show different levels of financial stress.
Ninety-eight percent wish there was a way to make up for lost time, but 63% say they cannot take the chance of investing in higher risk financial products.
While automatic enrollment generates positive effects, a report argues how these results are counterweighed by pre-retirement withdrawals.
Legislation has been passed that would increase HSA contribution limits, but prior data shows few employees actually contribute the maximum.
Most Millennials are appropriately invested, with 90% of their portfolios in equities.
They also value financial planning more than a bonus.