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| Benefits & Administration |
| Government Improves Measure of Retirement Income |
| A new analysis by the Employee Benefit Research
Institute (EBRI) shows that new questions to measure income in the U.S. Census
Bureau’s Current Population Survey (CPS) revealed a significant amount of
income from individual retirement accounts (IRAs) and 401(k)-type plans was
being missed across all levels of income for Americans age 65 or older. However,
even using new questions, Social Security remains by far the predominant source
of income for Americans of retirement age (65 or older), especially for those
with incomes in the bottom half.Read more > |
| Retirement Readiness Low Among Young and Low-Income |
| The Federal Reserve Board’s latest survey of the
financial and economic conditions of American households finds, in general,
many individuals want to save for retirement, but also many individuals—especially
those with lower incomes—are failing to do so. Additionally, even among those
who are saving for retirement, a majority of respondents indicate that they
have no or limited confidence in their ability to manage their retirement
investments.Read more > |
| DC Participants Could More Actively Manage Portfolios |
| Only 15% of defined contribution (DC) retirement
plan participants rebalanced their portfolios in 2014—making it one of the
lowest trading years on record, according to Aon Hewitt’s analysis of 138
defined contribution (DC) plans, representing 3.5 million eligible workers. Even
when eliminating the participants who are fully invested in target-date funds
(TDFs) or other premixed portfolio options—which do not require
rebalancing—only 19% rebalanced their portfolios. Rob Austin, director of
Retirement Research at Aon Hewitt, in Charlotte, North Carolina, tells
PLANSPONSOR that even if participants are all in a TDF or managed account, they
should periodically consider whether it is still the right investment for them.Read more > |
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| Products, Deals & People |
| Bill Bensur has joined the national investment
leadership team of Towers Watson and will head the firm’s investment office in
Pittsburgh. He will be tasked with expanding both the outsourced chief
investment officer (OCIO) and traditional consulting businesses in North
America.Read more > |
