NewsDash – August 9, 2023

August 9th, 2023
Insight on Plan Design & Investment Strategy Every Weekday

Data and Research

Pre-Retirees Plan to Collect Social Security Early, Not Maximizing Benefit

Although waiting until age 70 earns a retiree more Social Security benefits, many plan to start collecting earlier due to fears of insolvency, Schroders research shows.

Data and Research

Plan Sponsors Add Benefits to Blunt Inflation’s Sting

Goldman Sachs Ayco analyzed workplace compensation and benefits offerings, with controlling health care costs a particular focus.

Most Read

Benefits
Social Security COLA Increase to Add About $50 per Month in 2025

Administration
Bills to Ban Arbitration Clauses Reappear in House, Senate

Administration
Many Taxpayers Dodged Penalty Tax for Early Retirement Withdrawals

ECONOMIC EVENTS

June 2023 sales of merchant wholesalers, except manufacturers’ sales branches and offices, after adjustment for seasonal variations and trading day differences but not for price changes, were $643.3 billion, down 0.7% from the revised May level and were down 6.7% from the revised June 2022 level, the Census Bureau reported. The April 2023 to May 2023 percent change was revised from the preliminary estimate of down 0.2% to down 0.5%.

MARKET MIRROR

The Dow fell 158.64 points (0.45%) to close at 35,314.49, the Nasdaq fell 110.07 points (0.79%) to close at 13,884.32 and the S&P 500 fell 19.06 points (0.42%) to close at 4,499.38. The Russell 2000 lost 11.52 points (0.59%) to close at 1,947.42, and the FT Wilshire 5000 lost 214.84 points (0.47%) to close at 45,462.27.

The price of the 10-year Treasury note decreased 2/32, bringing the yield to 4.211%. The price of the 30-year Treasury bond decreased 2/32, bringing the yield to 4.211%.

Data and Research

Hardship Withdrawals Rose 36% Year-Over-Year in Q2

Bank of America participant analysis shows more employees prioritizing short-term expenses over long-term saving.

Compliance

Some 4010 Pension Filers May Qualify for Reporting Waiver

Due to unusual market conditions, many 4010 filers will struggle to determine if they are required to file, so the PBGC is providing a limited one-time waiver to certain defined benefit plans

Ask the Experts

How Do Maximum Elective Deferrals Work in a 403(b)/457(b) Combination?

Experts from Groom Law Group and CAPTRUST answer questions concerning retirement plan administration and regulations.

SMALL TALK

ON THIS DATE: In 1814, defeated by U.S. General Andrew Jackson, the Creek Indians signed the Treaty of Fort Jackson, requiring them to cede 23 million acres of land, comprising more than half of Alabama and part of southern Georgia. In 1854, Henry David Thoreau’s memoir “Walden” was published. In 1945, the second atomic bomb dropped on Japan by the U.S. in World War II struck the city of Nagasaki, killing an estimated 39,000 people. In 1969, actress Sharon Tate and four others were murdered by followers of Charles Manson, leader of a communal religious cult known as the “Family.” In 1974, Gerald R. Ford was sworn in as president of the U.S., succeeding Richard Nixon, who had resigned. In 1988, Canadian hockey player Wayne Gretzky was traded from the Edmonton Oilers to the Los Angeles Kings. In 1995, musician Jerry Garcia, who personified the hippie counterculture for three decades as the leader of the rock band the Grateful Dead, died of a heart attack at age 53. In 2014, Michael Brown, an unarmed African American teenager, was fatally shot by a white police officer in Ferguson, Missouri, resulting in days of civil unrest and protests.

Industry Intel Roundup—Thought Leadership

PLANSPONSOR is pleased to present the next edition of our Industry Intelligence roundup. This week, we are featuring content from thought leadership authorities. The content was created to educate, inform and offer ideas for plan sponsors regarding plan design, investing, administration and compliance.