EBRI says that if the Automatic Retirement Plan Act of 2017 was combined with auto-portability, the retirement savings shortfall of $4.13 trillion would be reduced by $932 billion, or 22.6%.
Data and Research
Both traditional and Roth IRAs serve Americans of all ages.
One third thinks they are either better or worse off than they actually are, Prudential Financial learned in a survey.
The median retirement account balance among all U.S. workers is "zilch"
Above-average-rated plans are more apt to be found at companies with 20% to 80% higher profitability than are average-rated plans, says T. Rowe Price.
Cost reductions are evident across asset classes—not just in equity.
Workers with generous employer health care benefits that may not be offered in retirement and those at higher risk of chronic conditions because of their family history or current health status should target higher savings rates.
Sponsors of defined contribution (DC) plans are invited to respond to our annual DC Survey. The survey is our largest and most important research project of the year, but we need your help for it to be a success. Please consider responding by the October 19 deadline.
Marsha Whitehead, OneAmerica vice president of enterprise marketing, explains how evaluating top financial concerns provides great insight into the root causes of financial stress.
Seventy-nine percent of Americans say they don’t fully understand what happened during or what caused the financial crisis.
Although a majority of workers thought workplace financial well-being programs would be either very or somewhat helpful in better preparing or saving for retirement, fewer than half of workers thought debt counseling or budgeting help would be helpful, EBRI found.
An aging population seems to be the greatest challenge facing the retirement systems of developed nations; Japan, where 27% of people are already over the age of 65, is a bellwether for what the rest of the developed world can expect in the coming decades.
Morningstar suggests individuals and their advisers must incorporate retirement age uncertainty in their retirement planning by focusing on saving.
Year-to-date, buy-out sales have been $9.6 billion, a 76% increase from the first two quarters of 2017.
For both the general public and mass-affluent households, saving more, choosing to invest one’s savings, delaying retirement and lowering standard-of-living expectations have a far greater effect on one’s retirement outlook than asset allocation, reducing fees or achieving alpha, Morningstar found.
Kravitz research found that 92% of cash balance plans are in firms with fewer than 100 employees.
Many Gen Xers and Gen Yers deferred 90% or more of the Internal Revenue Service (IRS) maximum allowance for contributions to their retirement accounts, according to research by Principal Financial Group, and they are sacrificing other expenses to do so.
And they generally think they will need to save half of what Baby Boomers think is needed to retire comfortably.
Those who did not increase their retirement savings cited stagnant income, other financial priorities, increased household expenses and an unexpected financial emergency as reasons.
Paying down debt is a higher priority for survey respondents than saving.