The proportion of plans that are at least partially bundled fell dramatically from 53.8% in 2016 to 44.0% in 2017, a continuation of the unbundling trend, according to Callan.
Data & Research
Plan sponsors are being more conscious and cautious with respect to managing the implications of the DOL fiduciary rule—and this is impacting plan leakage and rollover decisions to a strong degree, Callan says.
While the researchers say advisers may need to modify their business models slightly, the strategy uses existing resources and capabilities plan sponsors and providers have.
Most are not currently consulting with a financial professional, but retirees report a moderate amount of interest and pre-retirees a high amount of interest in receiving support and education on a variety of finance-related topics.
One-third say they plan to save $200,000 or less to be comfortable in retirement; they only expect to live to age 81; and very few feel they will end up in an assisted living facility, according to a survey.
Ascensus data shows the number of employers funding employer contributions increased from 53% in 2013 to 81% in 2016, and data gathered from Strategic Insight finds the amount of employers contributions have increased from $108.1 billion in 2010 to $139.2 billion in 2016.
During 2016, mortality improvement in older age groups offset large mortality increases, mostly due to external causes in middle age groups, according to the Society of Actuaries.
Researchers suggest debt management should be a factor in retirement security policy.
Latest studies find workers and employees share distinct disconnects with what type of financial education is needed.
The Center for Retirement Research (CRR) at Boston College's study finds half of Americans are at risk of having insufficient income to maintain their pre-retirement standard of living.
More than half plan to add to or enhance plan education and communication programs, and 21% plan to offer or enhance a company match.
Cerulli Associates says this is advisers’ biggest challenge.
However, advice seeking increases with age, account balance and annual contribution level.
This is up from 34% in 2016.
But, employees younger than 25 and older than 65 are more likely to say they try to save/invest their HSA funds, a survey finds.
They are making the move to become more competitive in light of the fact revenue growth has slowed to 7%.
The impact is greater for younger investors, as they have a long time horizon for saving, MassMutual finds.
Upon review, the correlations between financial education and improved financial behaviors is often better explained by other individual difference factors that were not measured in a given study, such as familiarity with numerical concepts, financial confidence, and willingness to take risks.
A number of key terms commonly present difficulty for nonprofit plan sponsors of all sizes—in particular the terminology surrounding “revenue sharing,” “fee levelization,” “fee policy statements,” and “3(21) vs. 3(38) advisers.”
Higher-income workers, making $90,000 a year, will pay $277,000, according to America’s Best 401k.