|
| Benefits & Administration |
| Loans, Suspended Deferrals Can Reduce Nest Eggs by as Much as 20% |
| Loans, hardship withdrawals and suspended deferrals reduce American’s 401(k) savings by an average of 14%, according to research by MassMutual. The impact is greater for younger workers, as their time horizon for saving is longer than older people. For example, a 29-year-old employee who is on target to retire at age 65 but who takes out a hardship withdrawal reduces their retirement readiness by 20%.Read more > |
| TDFs Evolve Alongside Participant Preferences |
| The 2017 Participant Survey from Northern Trust Asset Management shows evidence of an ongoing reevaluation of target-date funds (TDFs) “Target-date products are no longer the modular asset-allocation set-it-and-forget-it type options that asset managers first launched many years ago,” the analysis states. “They continue to evolve as greater focus is applied to understanding investors and their actual retirement needs.” The survey also shows today’s workers are looking more at outcomes to measure retirement savings and investing success.Read more > |
| Lack of Financial Literacy Remains Historic American Challenge |
| A new analysis from Questis takes a striking look back at the recent and not-so-recent development of workplace financial education in the United States; quotes from figures throughout history show how the problem of poor financial literacy has been around since the beginning of the American Republic.Read more > |
