The adoption of enhanced defined contribution (DC) plan features has led to increased plan participation and optimized portfolio construction for small business employees, according to Vanguard.
Tag: automatic enrollment
Seventy percent think their approach will help employees retire at their targeted retirement age, compared to only 43% of plan sponsors without this specific plan design.
In the decade following the Great Recession of 2008, for participants who remained invested in their 401(k)s, overall, average balances soared 466%.
A report from Aegon discusses retirement planning habits of workers in physically demanding jobs and how plan sponsors can help them be retirement ready.
Experts discuss how plan sponsors can get participants out of retirement savings "ruts" and get them to engage more with their retirement plans.
Among other things, comments are invited on ways to minimize the burden of the collection of information on respondents, including through the use of automated collection techniques or other forms of information technology.
Long-term 401(k) participation, savings and investing trends have also been positive, due in no small part to automatic plan features, according to a report from Fidelity Investments.
Results of a new Pew survey show about four in 10 non-investing individuals who express distrust in their primary financial institution said they would opt out of an automatic retirement plan enrollment.
Among some 50 other provisions aimed at improving retirement readiness in the U.S., the bill substantially increases the tax credit under current law for small businesses that adopt a new qualified retirement plan.
J.P. Morgan makes recommendations for plan design and TDFs based on savings and withdrawal behaviors it analyzed.
The availability of Roth contributions has doubled in the last decade, and more plan sponsors are using a default deferral rate with automatic enrollment that is higher than 3%, a Plan Sponsor Council of America survey found.
Now that automatic and default features have gained widespread acceptance in DC retirement plans, it may be time to consider additional steps to further enhance participant retirement preparedness.
Willis Towers Watson offers nine actions for DC plan sponsors to mitigate risks in 2019.
Setting defaults too low, choosing the wrong default investment and offering company stock as an investment option could result in unintended consequences, BlackRock found.
In addition, to help employees reduce their debt stress and maximize their retirement plan savings, more employers are developing financial wellbeing initiatives, Arthur J. Gallagher & Co. found.
The Standard recommends automatic plan features as well as managed accounts.
Only 33% of Americans are comfortable with their retirement readiness level.