Being a habitual saver and having a written plan for retirement are two key steps plan participants can take to prepare for a secure retirement, but research shows few have a written plan. What is included in that written plan is important. Recent research found that fewer than half of workers (48% global and U.S.) are currently factoring future health care expenses into their retirement savings needs, and in the U.S., only 41% of workers have a backup plan to provide an income in the event they are unable to work before they reach their planned retirement age. Planning to work past normal retirement age is part of the plan for an increasing number of employees, but these plans can be thwarted by health problems, job elimination and even age bias, so a backup plan is important. For a majority of employees, lack of education about how to spend down assets in retirement is confusing their plans, and they need education about the part Social Security will play in retirement income. In this edition of PLANSPONSOR Weekend, articles explore ways plan sponsors and retirement plan advisers can help participants plan for retirement.
A new research report and Catherine Collinson, with Transamerica Center for Retirement Studies, lay out steps all three can take to improve retirement confidence and readiness in America.Read more >
A survey from AIG Life & Retirement found many people want to live to 100, but are concerned about their assets lasting that long; Robert Scheinerman, with AIG Retirement Services, offers suggestions for helping them prepare.Read more >
Two more age bias cases were filed recently by the Equal Employment Opportunity Commission, and an agency report says age discrimination can thwart employees’ plans to work longer and could affect retirement plan drawdown strategies.Read more >
Defined contribution plan participants are unlikely to feel confidence about retiring when they receive no retirement income projections and no help defining discretionary versus required expenses.Read more >
Seventy percent of employees surveyed by the Nationwide Retirement Institute think they are eligible for full Social Security benefits before they actually are.Read more >
People who work with an adviser are more likely to say they have clarity on balancing spending and saving for later and have a financial plan built to endure market ups and downs than people who do not work with an adviser, a study shows.Read more >
Syed Nishat, with Wall Street Alliance Group, discusses potential effects on retirement plans if President Joe Biden is able to move forward his legislative agenda.
The lawsuit says the target-date funds were selected for the plan despite having no performance history and, when they continued to underperform, they were not replaced with better options.
While not required by ERISA, attorneys say a committee charter is a best practice that can help a plan run more smoothly—and help fiduciaries avoid litigation and penalties.
The Center for Retirement Research says half of American households are at risk of not being able to live at pre-retirement standards of living in retirement.
