| | Benefits & Administration | | Participants Don’t Realize Benefit of Small Savings Boost | | People just don’t realize what their spending
and savings behaviors add up to over a long period of time—say, 25 or 30 years,
the length of time they might have to save for retirement, says Fidelity
Investments. Fidelity points out that when compound interest and market growth
potential are factored in, saving $50 a month more today could translate into
an additional $270 of monthly retirement income. However, about two-thirds of those
polled by Fidelity far underestimated what that small savings boost today would
amount to in retirement.Read more > | | More than one-quarter (28%) of Americans say
high medical expenses are their biggest financial worry about retirement. A
Bankrate.com survey report reveals the highest-income households (over $75,000
per year) are even more concerned about high medical expenses than the overall
population. The second biggest worry is running out of money, which is the
greatest fear for Millennials, followed by not being able to afford daily
expenses (18%) and having too much debt (11%).Read more > | | SOA Maps Required Pension Contributions | | Significant increases in aggregate contribution
requirements lie ahead for single-employer defined benefit (DB) pension plans,
according to an updated analysis from the Society of Actuaries (SOA). This
doesn’t mean plan sponsors will immediately have to fork over more money to
their pension plans, the SOA report explains. In fact, the SOA actually
projects a reduction in the minimum annual required contribution for the next
decade or so. Beyond this point the prospects of increasing longevity and
weaker returns continue to expand pension liabilities—potentially at
problematic rates for all but the healthiest corporations.Read more > | | New research from the Employee Benefit Research
Institute (EBRI) indicates the retirement savings gap for Americans varies
widely by gender and marital status, among other factors. The aggregate
national retirement savings deficit is about $4.13 trillion for all U.S.
households between ages 25 and 64, according to EBRI’s new analysis based on
results from its proprietary Retirement Savings Projection Model (RSPM). The
Retirement Savings Shortfalls (RSS) show that for those on the verge of
retirement (Early Baby Boomers), the deficits vary from $19,304 (per
individual) for married households, increasing to $33,778 for single males and
$62,734 for single females.Read more > |
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