Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 23rd, 2015
Benefits & Administration
Cost of Retirement Income Jumped in 2014
A sharp rise in lifetime income costs means many workers in their 50s and early 60s are less financially prepared for retirement than they were 12 months ago, despite 11% gains in equity markets over the same time period. Even a strong 14% return for the average 55-year-old retirement investor examined by BlackRock couldn’t keep pace with the relative increase in lifetime income costs.Read more >
2014 PLANSPONSOR DC Survey: Plan Benchmarking
The difference between price and value is a fundamental concept in finance and represents an important lesson for investors to learn. It may be great to find a $5 watch, but the deal is less compelling if the thing doesn’t tick. As managing principal at Retirement Benefits Group in Irvine, California, Gary Josephs is often called on to discuss how the price/value question applies to employer-sponsored benefits, especially in regard to defined contribution (DC) retirement plans. He says the retirement plan industry’s reinvigorated focus on fees has been a positive development overall for plan participants, leading to better prices and greater transparency. However, there is sometimes a tendency for plan sponsors to overlook the best value in search of the lowest price.Read more >
Products, Deals & People
A Financial Wellness Program with a Human Touch
Carolyn Schneider, senior vice president of human resources at Capella Healthcare in Franklin, Tennessee, is concerned about the prospects for retirement for Capella employees. A couple of years ago, Schneider was attending a women’s conference where Alexa von Tobel, CEO of LearnVest, a financial education provider based in New York City, was presenting. Schneider turned to Capella’s chief financial officer, who was also attending the conference, and said, “This is something we need for employees.” She says she felt LearnVest’s financial wellness program was not only a great product but a way for the organization to meet its fiduciary responsibilities to employees in a way that is cutting edge.Read more >