Recommendations included conducting a comprehensive review of the American retirement system, educating small employers about plan options, allowing for open multiple employer plans (MEPs), changing certain defined contribution (DC) plan rules to facilitate greater savings, and increasing financial and retirement education, especially for women.
Tag: retirement savings
Not only are three-fourths of Millennial college graduates carrying student loan debt, but a Guardian report notes that, “Baby Boomer parents, in trying to fulfill their children’s dreams of a college education, have too often tapped their retirement savings.”
“Both financial literacy and short-run impatience play important roles in determining retirement saving, even after controlling for education and income,” researchers say in a study report.
Of the nearly half of survey respondents who report they have experienced health care cost increases in the past year, 24% state they have decreased their contributions to retirement plans, and 17% have taken a loan or withdrawal from a retirement plan.
Many contributing employees only save enough of their pay in defined contribution retirement plans to receive all available matching contributions—giving the employer significant influence over savings behaviors.
Even financially adept employees have trouble deciding where to save and how to spend.
Thirty-six percent of young adults who are both paying off debt and saving for retirement but who have made paying off debt their No. 1 priority feel “very good” about their financial health, whereas this is only true for 23% of those who have made saving for retirement their No. 1 priority.
The account stays with an individual from job to job and in between.
According to E*TRADE, the tool aims to help participants understand how proper utilization of proceeds can meet financial goals, among other things.
Seventy-nine percent of Americans say they don’t fully understand what happened during or what caused the financial crisis.
FactsOnRetirement.org also offers tips on saving and highlights ICI research.
There are arguments on both sides regarding whether paying down debt should be priority over saving for retirement or vice versa.
We covered a survey which found 28% of Americans are saving more for retirement this year compared to last year.
Many Gen Xers and Gen Yers deferred 90% or more of the Internal Revenue Service (IRS) maximum allowance for contributions to their retirement accounts, according to research by Principal Financial Group, and they are sacrificing other expenses to do so.
Those who did not increase their retirement savings cited stagnant income, other financial priorities, increased household expenses and an unexpected financial emergency as reasons.
While 27% of Millennial Americans allocate more cash towards coffee than retirement savings, most save an average of $480 per month on retirement.
Ninety-eight percent wish there was a way to make up for lost time, but 63% say they cannot take the chance of investing in higher risk financial products.