Even as large employers embrace cutting edge features in their retirement plans, LIMRA data shows small businesses continue to struggle when it comes to offering even basic retirement benefits.
Industry pros know there are big differences between financial services providers in termsof business models and their willingness to embrace fiduciary best practices—but many non-investors see a monolithic industry sharing a set of common reputation problems.
By talking about the power of compounding and emphasizing the importance of investing at the same time one is paying down debt, advisers can inspire younger clients to save more and save earlier.
Great retirement plans can be found in all industries and geographies, says Mel Hooker at Wells Fargo; what unites them is a sense of purpose and an ability for the employer to see the strategic importance of quality benefits.
Employees are changing jobs more frequently than ever before, says Mark Koeppen at FPS Trust; when they go missing, this can lead to wasted time and money spent on administration of their orphaned savings.
Natixis’ head of retirement reflects on the newly published 2018 Global Retirement Index report, which shows the U.S. continues to slip relative to other developed nations in terms of the strength of its system.
In a new Bank of America Merrill Lynch survey, 95% of employers who offer such benefits agree that their financial wellness programs have been effective at promoting work force management goals.
“ERISA’s limitations on who employers can exclude from ERISA plans are very narrow,” the decision states. “The law prohibits an employer from denying participation in an ERISA plan on the basis of age or length of service. Other than that, any bases for exclusion from a plan are permissible.”
Employees of small businesses with retirement plans that include automatic enrollment have far higher participation rates across all demographic variables, according to new data shared by Vanguard.
According to state authorities, the combined savings of the first groups of participating savers is approaching $5 million.
There is more emphasis than ever before in the DC plan space on identifying the best way to offer a benefit that is not just a to-retirement program, but also a through-retirement program.
In a frank conversation with PLANADVISER, Andrew Biggs points to some common misconceptions about retirement income replacement among lower income groups.
Take a couple that is healthy and retiring today at age 65; the probability of at least one member of this couple living to age 75 is 97%, and to 90, nearly 50%.
The percentage of people who contributed to their Fidelity IRA in Q1 2018 increased 14% over a year ago; among Millennials, IRA contributions increased even more.
A new analysis from Charles Schwab shows those with a written financial plan are much more likely to have a higher overall Modern Wealth Index score, be regular savers, and effectively manage their debt.
Chris Barlow, national director of defined contribution investments for BMO GAM, riffs on the results of a new “DC Conversations” industry assessment; among the top findings is a downward trend in deferral rates across all sectors since 2010.
While not a traditional topic for retirement specialist advisers to speak about, experts agree that student loan repayment benefits are a powerful boon to financial wellness programming—and a topic that financial advisers should learn more about.