Ric Edelman, chairman and CEO of Edelman Financial Services, told his Chicago audience that a combination of factors including a misunderstanding of exponential growth and its effect on compounding interest have led workers to short-term planning that can be deadly to 401(k)s and other defined contribution plans.
Bank of America Merrill Lynch reports 207 plans with auto-increase features, up 9.5% from the end of last year. Participants in those plans also rose, by 9.3%, from 115,703 to 126,537.
Never before have there been so many investment options open to retirement plan sponsors and participants. Still, at a time when most employers are focused on health care reform, selecting said options requires great care.
Whether you agree with its narrative or not, The Retirement Gamble should be required viewing for employees and employers alike.
PSCAs Bob Benish and other experts address trends in retirement plan design, investments and consulting at the American Society of Pension Professionals and Actuaries 401(k) Summit.
Most 403(b) organizations contributed to their plans in 2012, the PSCA reports, with the average contribution nearly 10% higher than 2011.
The court observed that a person is a fiduciary only to the extent it exercises authority or control over plan assets in a case involving a small prosthetic limbs manufacturer and American United Life.
Guest blogger Adam Miloro maintains the issue concerning 401(k) loans continues to be the lack of education surrounding them. Its true there are certain situations where taking a loan from ones retirement plan could make sense, he writes, but for many employees loans signify a much larger problem: living beyond one's means.
On average, employees with both 401(k)s and health savings accounts tend to save more of their annual salaries (8.5% average annual deferral rate) in their DC accounts than employees with just a DC plan (8.1%).
In a scenario where retirement income and wealth account for 100% of an investors simulated retirement expenses, a model projects that around a quarter of baby boomers and Gen Xers who would have had sufficient retirement income under interest rates at historical averages would run out of money if the current low rates were taken as a permanent condition.
Sen. Tom Harkin, an Iowa Democrat and chairman of the Senate Health, Education, Labor and Pensions Committee, plans to introduce legislation this year to require businesses that dont offer a pension or 401(k) plan with a company match to automatically enroll workers in a so-called USA Retirement Fund.
Baby boomers are bucking the trends of generations before them, according to research released this week from Bank of America Merrill Lynch. When it comes to what they will pass on, 72% cite values and life lessons as most important, while just 32% said financial and real estate assets.
There is no assurance that any 401(k) plan can place participants where they need to be when they wish to retire.
The Fidelity Investments findings show that average balances in small business retirement savings plans increased 20% since 2007, and jumped an average of 64% over 2008 when balances were generally at their lowest point.
Nearly three out of five retirees say they retired earlier than they expected, according to a survey of retirees and pre-retirees conducted by Bank of America Merrill Lynch. Just one in nine pre-retirees, meanwhile, is completely confident in their ability to pay for their health care retirement expenses.