Workers under age 35 are realizing they need to start saving now, according to Ascensus.
Tag: automatic enrollment
Ten percent more employers than in 2016 that offer retirement programs are measuring the financial readiness of employees to retire, a survey found.
Monthly expenses are their second concern, The Standard found in a survey.
However, only 33% are confident about their retirement readiness.
Their use of an adviser acting as a plan fiduciary has increased by 40% in the past four years, according to the Plan Sponsor Council of America.
Sixty-one percent of all participants surveyed by J.P. Morgan agreed with the statement, “If I could push an ‘easy’ button for retirement and completely hand over my retirement planning and investing to a financial professional, I would.”
If combined with the Automatic Retirement Plan Act of 2017, the retirement savings shortfall would be reduced by $932 billion, or 22.6%, according to EBRI.
In addition, a mere 18% of workers are very confident they will be able to retire with a comfortable lifestyle.
Fidelity finds that since 2008, the average savings rate among employees automatically enrolled has risen from 4% to 6.7%, and 63% of automatically enrolled participants in the past 10 years have increased their savings rate.
Fifty-two percent think they will be able to retire at their ideal retirement age, and 52% say they either somewhat or strongly agree that their savings will last throughout their lifetime.
To help employees achieve their savings goals, 82% of sponsors are making changes to plan design, and 83% are updating their investment menus.
A TIAA study finds the feature's benefit are continuously offset by pre-retirement withdrawals and plan loans.
One measure is to encourage MEPs by eliminating the “nexus” requirement.
The “Less Is Not More” study set out to determine whether presenting retirement plan information in a more compact and accessible way increases participation and results in better investment decisions.
They are on track to replace 75% of their income, compared to 64% for Americans overall.
Additionally, the number of plans with an initial 6% deferral rate for automatic enrollment now surpass those with 3% as the initial rate.
In a frank conversation with PLANADVISER, Andrew Biggs points to some common misconceptions about retirement income replacement among lower income groups.
Participants who work with a traditional or online adviser are on track to replace 116% of their income. Those working with any paid adviser, 91%, and those with no adviser, 51%.
Employer contributions and loans are also prevalent, a Brightscope/ICI report says.
Men are saving an average of 8.9%, and women, 6.4%, PenFed Credit Union found in a survey