Labor Tightness Drives More Immediate Eligibility for Retirement Deferrals
The tight labor market has pushed employers to offer attractive retirement savings plans, according to experts at Vanguard and Fiducient Advisors
15th Anniversary of RPAY: Jania Stout
In the past few years, her practice has grown its assets by nearly $1 billion a year.
T. Rowe Price: 401(k) Participation Nears 80%
What is particularly encouraging is that 37% of plans on T. Rowe Price’s platform automatically enroll their participants at a 6% or higher deferral rate.
Plan Sponsors Calling on Advisers to Improve Participant Outcomes
“They are hiring advisers to understand how well their plan is functioning and how to improve it,” Jordan Burgess, with Fidelity Institutional Asset Management, tells PLANADVISER.
Proactive Plan Sponsors Reap Benefits
Plan sponsors that fully automate their plans are more likely than others to believe their workers are on the path towards a financially secure retirement, J.P. Morgan found.
Nearly Half of Vanguard Plans Use Automatic Enrollment
At year-end 2018, 66% of new plan entrants were enrolled via automatic enrollment.
Employer Contributions on the Rise
Senators Portman and Cardin Offer Another Retirement Reform Bill
A bipartisan pair of Senators introduced another retirement-focused piece of lame duck legislation, including more than 50 provisions aimed at increasing savings in DC plans and IRAs.
More Efforts Needed to Increase Retirement Plan Participant Savings Rates
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.
When Auto-Roth Accounts Make More Sense
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.
2019 Planning for DC Plan Clients
Willis Towers Watson offers nine actions for DC plan advisers to help their clients mitigate risks in 2019.
Even More Retirement Industry Evolution Expected in 2019
Setting Defaults and Auto-Escalations Too Low May Undermine their Power
In addition, a person invested in a stable value fund versus someone invested in a target-date fund could end up with a balance as much as 59% lower, BlackRock says.
Another Survey Finds Saving for Retirement Is Employees’ Top Financial Concern
Monthly expenses are their second concern, The Standard found in a survey.
Americans’ Top Financial Concern is Retirement Savings
However, only 33% are confident about their retirement readiness.
Narrowing the Scope
Improvement in Retirement Outlook
403(b)s Adopting Best Practices
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.
Auto-Portability Would Help Reduce the Retirement Deficit Significantly
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.
Participants’ Retirement Outlook Has Improved
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.