In the majority of cases, plan sponsors that participated in Callan’s 2019 Defined Contribution (DC) Trends Survey said their plan consultant/adviser conducted fee benchmarking, and in 2019, sponsors will be looking to switch to lower-fee share classes and to more institutional vehicles.
Studies from Empower Institute found many commonly used industry terms don’t make sense to their intended audience, and employees perceive retirement plan communications as wordy and long, complex and confusing, generic, overwhelming and wasteful.
A look at some of the products and services retirement plan sponsors are requesting outside of 401(k) plans.
They are centered around three key themes: 1) Secure your foundation, 2) Achieve greater prosperity and 3) Inspire confidence.
LIMRA Secure Retirement Institute data shows single retirees feel less confident than married retirees; many say they want more professional financial advice.
According to Mercer, developing a “journey plan” that outlines the strategic policy choices to move a plan to its ultimate destination is a step many plan sponsors have undertaken.
According to Cerulli research, the various parties involved in the implementation of an in-plan retirement income solution are often not on the same page about basic terminology and definitions.
According to Willis Towers Watson, just over 80% of organizations acknowledge the importance of their older workers and managing the retirement process; however, only about half believe they understand the process well, and just one-quarter feel they have found an effective approach.
The frequency of withdrawals prevents HSA account holders from building a meaningful balance to use for health care expenses in retirement, and individuals are unlikely to allocate their assets to investment products if their primary goal is to fund short-term medical expenses, Cerulli says.
While automatic enrollment gets participants into plans, a sizable segment are starting their average contributions at a minimum 3.3% rate and failing to take any additional action to increase that, according to J.P. Morgan Asset Management.
Those who work with a financial adviser are more than twice as confident they will have enough money to enjoy a comfortable retirement, Legg Mason found in a survey.
Educators who work with a financial professional exhibit more effective financial behaviors over time, have higher mean annual contributions, increase their contributions more frequently, and are more likely to monitor their account performance than those who do not, a survey finds.
Janus Henderson research suggests the vast majority of auto-enrollment programs fund only pre-tax accounts; this is despite the fact that for younger, lower-income employees, funding a Roth account may be a more appropriate long-term option.
Consultants with Findley discussed a game plan for having data, financials and a communications strategy ready before embarking on a DB plan termination.
Willis Towers Watson offers nine actions for DC plan advisers to help their clients mitigate risks in 2019.
Few employers surveyed by the Employee Benefit Research Institute (EBRI) currently consider the financial wellness initiatives as “holistic” programs, and they noted challenges to offering these programs.
Willis Towers Watson offers investment considerations for sponsors of defined benefit plans.
And, only 29% plan to use a health savings account (HSA) to cover medical costs in retirement, HSA Bank found.
Nearly all of those who work with an adviser feel they have prepared themselves well for estimating their monthly income needs in retirement, Voya Financial learned in a survey.
As retirees drawing Social Security income look forward to a modest increase in benefits scheduled for 2019, AARP has published a list of common Social Security misconceptions.