Those who are contributing less than 3% to a retirement plan are on track to replace 59% of their income in retirement, whereas those who contribute 10% or more are on track to replace 128% of their income, an analysis from Empower found.
DC plan consultants surveyed by PIMCO offer suggestions for helping retirees with income, core investment menu design and other DC plan features.
With concerns about retirement readiness growing, sponsors are turning to automatic features, increasing their contributions, streamlining their investment menus and improving fee transparency.
A blueprint from the Insured Retirement Institute offers a guide for its dialogue with Congress and the Administration about improving Americans’ retirement outlook.
In 2016, 40.2% of plan sponsors surveyed by the PSCA used a default rate for auto enrollment greater than 6%.
All employees would have 6% of their income contributed to a workplace retirement plan and have these contributions automatically escalated each year.
Seventy percent of those with less than $45,000 in household income say they cannot afford to save for retirement.