Tag: retirement plan design
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.
With the solution, created using GuidedChoice data, plan sponsors and consultants can more easily identify participants who might be falling behind, provide data-driven advice and make more strategic plan design decisions.
Findings of a Commonwealth study provide support for retirement plan sponsors to time employee deferral increases with raises and for employers to offer sidecar savings accounts for emergency funds.
In honor of National Employee Benefits Day, Jason Grantz, with Unified Trust, discusses the progress made in the 401(k) industry and the future focus.
Researchers’ findings suggest “that an equivalent reform in the United States could generate a sizeable increase in retirement plan participation, primarily among employers with fewer than 500 workers.”
While start-up plans do offer beneficial provisions for retirement plan participants, PLANSPONSOR’s 2018 Defined Contribution Survey finds not all of them are yet using plan designs and governance practices that are recommended in the industry.
Stressing what can be lost or gained, peer reviews and comparisons and certain plan design features are among the suggestions offered by the International Foundation of Employee Benefit Plans in a white paper.
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.
Research published by NTSA also finds a 203% increase in average contribution rates among plans providing access to 15 or more providers compared to plans with only one provider.
The Standard recommends automatic plan features as well as managed accounts.
New Wells Fargo plan health research shows “high influence” plans do not all look the same, nor are they just the most generous plans in terms of the matching formula.
Willis Towers Watson believes plan-wide statistics on mean or median participation rates, balances or contribution rates measure aggregate data on all participants but offer little in the way of insight into retirement adequacy and meaningful benchmarks for individuals or segments of the population.
While defined contribution plans showed resilience during the Great Depression and recovery, more can be done to help participants, Transamerica Center for Retirement Studies says.
An aging population seems to be the greatest challenge facing the retirement systems of developed nations; Japan, where 27% of people are already over the age of 65, is a bellwether for what the rest of the developed world can expect in the coming decades.
TIAA supports offering lifetime income options and makes other plan administrative and design suggestions to alleviate plan sponsors’ concerns about their employees’ retirement outlook.
Most retirement plan participants would like savings and investing guidance, a survey finds.