Tag: deferral rate

Workers under age 35 are realizing they need to start saving now, according to Ascensus.

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.

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.

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.

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.

Additionally, the number of plans with an initial 6% deferral rate for automatic enrollment now surpass those with 3% as the initial rate.

Men are saving an average of 8.9%, and women, 6.4%, PenFed Credit Union found in a survey

Only one-third are participating in their retirement plan

The number of participants taking hardship withdrawals remained less than 1%.