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| Benefits & Administration |
| Moving the Needle on Retirement Confidence |
| The 25th Retirement Confidence Survey (RCS) from
the Employee Benefit Research Institute (EBRI) finds Americans’ confidence in
their ability to afford a comfortable retirement has continued to rebound from
the record lows experienced between 2009 and 2013, but this increased level of
confidence does not appear to be grounded on objectively improved retirement
preparations. The increased confidence since 2013 is strongly related to
retirement plan participation, the survey report says. Nevertheless, many
workers say they could save a small amount more. Seven in 10 (69%) state they
could save $25 a week more than they are currently saving for retirement.Read more > |
| Loan Policy Affects Plan Leakage |
| A study concludes that retirement plan loan
policy is economically meaningful in shaping participant borrowing. In
“Borrowing from the Future: 401(k) Plan
Loans and Loan Defaults,” researchers say their administrative dataset tracks
several hundred plans over five years and shows 20% of retirement plan
participants borrow at any given time, and almost 40% do at some point over
five years. They estimate loan default “leakage” at $6 billion annually.
According to the research report, when a plan sponsor permits multiple rather
than only one loan, the probability of plan borrowing nearly doubles.Read more > |
| Retirement Planning Should Consider the Unexpected |
| Sixteen percent of workers in the 2015
Retirement Confidence Survey (RCS) from the Employee Benefit Research Institute
(EBRI) say the age at which they expect to retire has changed in the past year,
and of those, the large majority (81%) report their expected retirement age has
increased. Luke Vandermillen, vice president of retirement and investor
services at The Principal, a co-sponsor of the survey, notes that workers and
retirees responding to the survey say they spend little time doing retirement
planning—less than they spend planning for the holidays. “This leads to
misconceptions,” he tells PLANSPONSOR. “Workers think if they don’t have enough
money to retire, they will just work longer or work in retirement, but
sometimes people can’t retire on their own terms because of health issues or
company downsizing.”Read more > |
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| Products, Deals & People |
| Tonya B. Manning joined Buck Consultants at
Xerox as chief actuary, a role that involves shaping and improving the firm’s
understanding of current market trends.Read more > |
