DC plan consultants surveyed by PIMCO offer suggestions for helping retirees with income, core investment menu design and other DC plan features.
Tag: Retirement Income
EBRI says its finding that retirees among all levels of retirement savings are slow to spend down their assets could mean that retirement readiness should be measured differently or that more education is needed to help retirees with a spend-down strategy.
This is especially true for single women retirees, but a survey finds owning an annuity and working with a financial adviser helps.
In addition, a survey found, most do not know what they need to save for a comfortable retirement.
The framework helps retirees address basic living expenses, establish a contingency reserve, account for discretionary expenses, and structure a legacy.
“Life events happen, and people don’t always get to choose when they retire, which is why it’s important to have a well thought-out plan that maps out different retirement age scenarios and projected costs in retirement,” says Joe Ready, head of Wells Fargo Institutional Retirement and Trust.
Fifty-eight percent would rather have their employer provide them a set retirement paycheck for life than to invest on their own.
The Insured Retirement Institute found 42% of Baby Boomers have no retirement savings, and industry sources say longevity and long-term care expenses are often not considered when Baby Boomers plan for retirement.
Prudential has introduced Guaranteed Income for Tomorrow (GIFT).
“Consequently, any policy that alters this system could have consequences–either positive or negative–for Americans’ ability to fund a comfortable retirement,” says Craig Copeland, with EBRI.
Nearly six in ten pre-retirees and 32% of retirees describe their primary investment strategy as focused on either “aggressive growth” or “moderate growth;” a MassMutual survey finds.
“We are excited to deliver a long overdue solution to the many plan sponsors seeking a prudent process for meeting their fiduciary duties related to a QPDA option,” says Kelli Hueler, founder and CEO of Hueler Income Solutions, LLC.
Rather than rely on a simple 4% withdrawal rule, the new BlackRock model seeks to sustain the consumption pattern once labor income ceases.
They view it as a hedge against rising health care costs, longevity risk and market downturns.
A new website launched by Principal seeks to help business owners and their advisers talk through the possibilities of creating an employee stock ownership plan as part of a broader ownership transition.
Research reveals that less than half of sponsors believe that employees are solely responsible for their own retirement savings and investing decisions, but greater than three-quarters of participants feel that they have sole responsibility for these decisions.
Growing contributions and a strong equity market helped propel HSA investment assets up 53% year over year during 2017; data shows employees increasingly want advice on how to invest and eventually spend HSA dollars.
However, changes in the retirement landscape suggest that future retirees will face much more difficulty.
The research also found that retirees and pre-retirees who have a formal retirement plan are three times as likely to feel they are very prepared for retirement.