Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
May 19th, 2015
Editor’s Note
Today, PLANSPONSOR is pleased to bring you a special NewsDash sponsored by Morningstar’s Investment Management group focused on improving retirement plan participant outcomes.
Education & Advice
The Impact of Expert Guidance on Participant Behaviors
Determining how much to save for retirement and how to invest those savings is a complex problem, and the growth of 401(k) and similar defined contribution plans has shifted the responsibility to individuals. But evidence suggests that, as a whole, people aren’t great savers or investors. Does professional online retirement saving and investment advice help individuals improve their chances for better retirement outcomes?Read more >
A new TIAA-CREF survey shows that 63% of women who have received professional financial advice say they feel confident about their personal retirement readiness. The annual Advice Matters Survey reveals that while women continue to report lower rates of confidence in their retirement readiness compared with men (56% vs. 63%), receiving financial advice can help eliminate the gender gap. In addition to feeling more confident, 81% of women who receive financial advice say they feel informed about retirement planning and retirement savings, compared with 63% who have not received advice.Read more >
Plan participants increasingly realize they are responsible for generating their own retirement income, but many still pass over investment advice offerings, a survey from Schwab Retirement Plan Services finds. Nine in 10 participants surveyed indicated they are relying on themselves for the money needed to live in retirement, and most use a 401(k) as their primary or sole source of retirement savings. Despite this, respondents say they are much more likely to have someone change the oil in their car (87%) than have someone help them choose their 401(k) investments (24%).Read more >
Special Offer from Morningstar
Download White Paper: How Can You Help Your Employees Retire? Choosing the right investment solution can make all the difference. Read more >