Data & Research April 27, 2018

$1 Million Not the Magic Number Most Employees Say They Need for Retirement

More than half of employees surveyed by CareerBuilder said they think they'll need to save less than $1 million in order to retire.

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More than half (53%) of workers ages 60 and older say they are postponing retirement, with 57% of men putting retirement on hold compared to 48% of women, according to a CareerBuilder survey.

Four in 10 workers don’t think they’ll be able to retire until age 70 or older.

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Approximately one-quarter (24%) do not know how much they will need to save for retirement. Women are much more likely to be unsure of how much to save than men—31% vs. 17%, respectively.

When asked how much money they think they’ll need to save in order to retire, workers said:

  • Less than $500,000: 20%;
  • $500,000 to less than $1 million: 31%;
  • $1 million to less than $2 million: 14%;
  • $2 million to less than $3 million: 5%; and
  • $3 million or more: 7%.

When asked if they are currently contributing to retirement accounts, roughly one in four workers ages 55 and older (23%) said they do not participate in a 401(k), IRA or other retirement plan. Among younger adults ages 18 to 34, 40% said they do not participate in a 401(k), IRA or other retirement plan.

The survey was conducted online within the U.S. by The Harris Poll on behalf of CareerBuilder among 809 employees ages 18 and older (employed full-time, not self-employed, non-government) between November 28 and December 20, 2017.
Products April 26, 2018

FPS Group Updates IPX Platform Supporting 403(b), 457(b) Advisers

The IPX platform provides RIAs with a more manageable entry point into the complex 403(b) and 457(b) markets by streamlining the requisite custody, trust, trading and administrative services.

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FPS Group has introduced updates and enhancements to its Investment Provider Xchange (IPX) platform, which supports registered investment advisers (RIAs) working in the 403(b) and 457(b) retirement plan markets.

As the firm explains, this IPX redesign “comes as the 403(b) market falls under increased criticism for its complex and costly offerings, while plan sponsor and participant calls for a more transparent, less unwieldy program have grown louder.”

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According to FPS Group, as more advisers move away from commission-based products and seek opportunities to expand their businesses, IPX “removes barriers to entry in the 403(b) space by allowing RIAs to design their own investment solutions and have more control over participant accounts and outcomes.” Through IPX, RIAs gain increased access to participants, allowing them to communicate more efficiently and direct them toward the right solutions and products.

“The 403(b) space presents a complex landscape with countless products and advisers operating under an evolving regulatory environment. As a result, fee-only advisers have a hard time wrestling with the market,” says James Olson, managing director of FPS Group. “Our firm is deeply committed to the 403(b) space and there is an emerging opportunity for advisers who are willing and interested to engage in 403(b)s.”

Olson says IPX is “a modernization of traditional recordkeeping platforms that serve plans with multiple providers.” The solution was created following 2009 regulatory changes, which sought to structure the 403(b) offering similarly to the traditional 401(k) retirement savings vehicle.

“The industry is desperate for increased awareness and training around the 403(b) space, and the participant experience is undoubtedly improved by better equipping those who serve the plans,” Olson adds.

For more information on IPX, visit www.ipxplatform.com.

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