Data & Research September 6, 2012

Saving for Retirement a Struggle for Most Americans

Less than a third are able to save their ideal retirement savings target of 6% to 19% of income, a Scottrade survey found.

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The bulk of Americans’ income, 21%, goes toward their mortgage and other debt, according to  Scottrade’s survey, conducted in June. In fact, while respondents said they would like to spend less, use coupons and comparison shop, these efforts are all down from a peak in January 2012, back to levels last seen in January 2011. Sixty-four percent are spending less, down from 69% in January 2012; 60% are using coupons, down from 67%; and 61% are comparison shopping, down from 65%.

“Americans are trying to balance their savings goals with everyday expenses,” said Kristin Grupas, assistant director of client education at Scottrade.

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Fortunately, 65% of those polled in June said they are working with a broker or professional financial adviser, and nearly half of this group rated their confidence in their ability to plan for retirement as “good” or “very good.”

Synovate conducted the survey for Scottrade between June 7 and 12 among 1,000 people aged 18 and over who said they are involved in making investment decisions in their households.

Products September 6, 2012

BPAS Offers Plan Loan Continuation Feature

Benefit Plans Administrative Services Inc. (BPAS) released a program that aims to help terminated employees continue repaying loans after separation from service.
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Under the MyPlanLoan Continuation Program, terminated participants have the ability to continue repaying their loan under the original terms, avoiding significant tax penalties associated with a default. BPAS handles all billing, payment processing and administrative functions – receiving monthly payments directly from participants, and depositing payments to each participant’s plan account.   

The service is also available for the loans of active participants and the conversion of existing loans – providing flexibility while allowing human resources to exit the business of loan administration.   

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“This automated process eliminates the headaches of loan administration. It allows loans to be repaid more quickly and can boost overall plan participation,” said Barry S. Kublin, president of BPAS. “Our prudent loan program allows plan sponsors to set loan limits below 72(p), preventing employees from borrowing more than they should, and protecting retirement savings. It’s a solution that benefits everyone.”  

The MyPlanLoan Continuation Program is available for retirement plans administered by BPAS. The entire MyPlanLoan program is available to third-party administrators and retirement service providers as a standalone service, with BPAS providing all back-office support functions.   

For more information about MyPlanLoan, contact Gwenn Paness, sales director, at (646) 285-4937 or gpaness@bpas.com. 

 

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