Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
July 11th, 2018
Benefits & Administration
Many Millennials, Gen Xers Don’t Expect to Receive Social Security
Social Security will be the most critical source of income for 61% of pre-retirees. However, only 70% of Gen Xers and 51% of Millennials expect Social Security benefits when they retire, PGIM Investments, the investment business of Prudential Financial, found in a survey. While Millennials are the least likely to rely on Social Security for retirement income, nearly one in three are not saving anything for retirement. More than one-third say they do not see any point in saving for retirement because anything can happen between now and then. Additionally, nearly one in five Gen Xers are not saving anything for retirement.Read more >
Ask the Experts
Must Plans Adopt Budget Act New Hardship Withdrawal Rules?
“I am aware from a prior Ask the Experts column that the Bipartisan Budget Act of 2018 made some changes to the hardship distribution rules? But what if we want to keep the hardship distribution rules that we have in place currently? For example, we prefer that participants exhaust all in-plan loan availability prior to taking a hardship distribution, since it prevents plan leakage. Will we be forced to remove the requirement that all available loans be taken from our 403(b) plan before a hardship distribution may be issued?”Read more >
We’d Like to Profile a Plan Sponsor
In an article last November, we covered the idea of so-called “side-car” accounts—workers who do not yet have emergency savings will be directed to first fund a short-term savings account reserved for emergencies, before funding their retirement account. If you are a plan sponsor who offers such an account to employees or if you know a plan sponsor that offers one, and would be willing to speak to us about it, please send an email to rebecca.moore@strategic-i.com.Read more >
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