Results outweigh the retirement plan sponsor costs.
Tag: Retirement Readiness
The trust and expectation that employees place in their employers to help them prepare effectively for retirement is stronger than ever, and this is both a burden and an opportunity for DC plan sponsors.
The Center for Retirement Research finds that the net worth of non-divorced households is 30% higher than for divorced households.
An analysis by the Employee Research Institute finds 57.4% of U.S. households are on track to be able to cover 100% of expenses in retirement, but if long-term care costs are removed from the equation, the percentage jumps to 75.5%.
A research report says "financial education delivered to employees around the age of 40 will optimally enhance savings at retirement close to 10%. By contrast, programs that provide one-time education can generate short-term but few long-term effects.”
The metrics provide data that plan sponsors can use to demonstrate that certain features are effective and help them make further plan enhancements to encourage retirement preparedness, says Diana Awed, head of marketing and client experience for T. Rowe Price.
More than one-quarter of Millennials have more than $100,000 in retirement savings, with an average of 30 to 35 years before retirement, compared to 75% of Boomers with more than $100,000 in savings and an average of only three years before retirement.
Over two-fifths of non-retirees think their retirement savings is not on track, and having taken a loan or distribution, as well as discomfort with investing, lowers retirement confidence.
A speaker at PSCA’s 71st Annual National Conference suggests reports of Americans retirement savings inadequacy are overblown and offers data to back that up.
In addition, a CareerBuilder survey found roughly one in four workers ages 55 and older (23%) said they do not participate in a 401(k), IRA or other retirement plan.
Compared to workers who feel very ready for retirement, unprepared workers show disappointment with the retirement information provided by their employers, a survey by the Indexed Annuity Leadership Council finds.
Future retirees expect a greater monthly payment from Social Security than what current retirees say they collect, according to a survey from Nationwide.
The latest Retirement Confidence Survey from the Employee Benefit Research Institute shows confidence in specific factors for retirement readiness is lower, and sources offer suggestions for how retirement plan sponsors and advisers can help.
More than four in 10 retirees report that their health care expenses in retirement are higher than they expected and one-quarter say long-term care costs have been higher.
The Employee Benefit Research Institute’s (EBRI) 28th annual Retirement Confidence Survey (RCS) finds the share of employees who feel very confident in their ability to live comfortably in retirement remains low at just 17%.
Peg Knox, chief operating officer of DCIIA, points to both the coverage gap and retirement income adequacy as being top of mind; there is also a strong fee litigation focus, given how near and dear this topic is to both plan sponsors and service providers.
The framework helps retirees address basic living expenses, establish a contingency reserve, account for discretionary expenses, and structure a legacy.
Bruce McClary, vice president of communications at the NFCC, says its survey shows Americans of all generations are increasingly challenged by financial commitments.
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.
Six in ten (61%) survey respondents are simply not sure how long it might delay their ability to save for retirement should a large 6,000 point drop in the Dow occur.