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Retirement Income
It’s a massive gap. Generation X says it will take $1,112,183 in savings to retire comfortably, yet they expect to have $661,013 saved. The $451,170 difference tops the expected shortfall facing Millennials and Baby Boomers.
According to a new Schroders survey, 45% of non-retired Gen Xers...
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The Pension Benefit Guaranty Corporation (PBGC) on Dec. 15 issued the interest assumptions under the asset allocation regulation for plans with valuation dates in the first quarter of 2024.
The assumptions are contained in a final rule that amends the PBGC’s regulation on Allocation of Assets in...
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Is IBM on to something?
Big Blue recently announced that they would end the company’s 401(k) match effective January 1, 2024, replacing it with a Retirement Benefit Account (RBA). It will replace the match with a fixed employer contribution of 5% of compensation plus a one-time 1% pay increase....
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More good news on (closing) the retirement plan coverage gap, specifically related to state auto-IRA mandates.
The American Retirement Association has long argued—and an increasing body of research confirms—that state-sponsored retirement plans close the coverage gap, not only by providing a...
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Delaware is joining the Partnership for a Dignified Retirement, an interstate consortium that helps states provide access to retirement plan coverage. The action brings Delaware’s program into formal cooperation with those of Colorado and Maine.
Colorado Gov. Jared Polis (D) signed the measure...
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Recently, I came across an announcement that IBM was making changes to its 401(k).
More specifically that, effective next year they were going to replace their matching contribution in their 401(k) with an employer contribution to a cash balance plan.[1] In the days that followed, the news was...
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Private-sector pension plans are subject to the vagaries of the economy and the market—nonetheless, they are generally fully funded. In fact, some are a bit more than fully—and there could be a cloud that accompanies that silver lining.
Where We Are
Data from a variety of sources in November...
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By many measures, CalSavers’ fortunes matched the warm colors of the foliage in Autumn 2023, although some results did not show progress.
CalSavers, as one of the longest-lived state-run programs that provides retirement plan coverage to private-sector employees whose employers do not have a plan...
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In a positive sign that lawmakers are committed to fixing several errors contained in the SECURE 2.0 Act, the House and Senate have just released a draft technical corrections bill, including changes to allow catch-up contributions and provide parity for Starter 401(k)s championed by the American...
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Private-sector pension plans’ fortunes improved slightly in November—not exactly a feast, but also not a famine.
By a variety of measures, November’s results continued the rather indeterminate performance of U.S. private-sector pension plans that has held sway since August, when their results...
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There is work to be done in improving overall retirement readiness—and one factor that could help explain that is confidence about retirement planning and plans, recent studies suggest.
Confidence Wanting
Confidence about finances in general is low among those surveyed in the United States that...
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When asked what actions they were likely to take in 2024 as to their overall savings picture, new research finds a hint of optimism appears to be shining through, even though challenges remain.
In fact, findings from Voya’s Q4 Retirement Report based on the firm’s Financial Consumer Insights...
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The rule temporarily reinstating the requirement that employers provide two identifying numbers in order to register with CalSavers could become permanent.
Employers originally had been required to provide (1) their employer payroll tax account number and (2) their federal employer identification...
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Happy Birthday, ERISA!
It’s been 50 years since the Congress passed landmark legislation that protected the savings of American workers and—arguably—created an entire industry. It’s now time for the golden anniversary.
The American Retirement Association announced that it and eight associations...
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It’s all about the attitude—especially in retirement saving and investing.
Little surprise that certain financial behaviors help close gaps between retirement savers’ intentions and their reality, but Goldman Sachs Asset Management recently identified which, exactly, matters most.
The four...
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The Pension Benefit Guaranty Corporation (PBGC) on Nov. 28 published a final rule amending its regulation on Allocation of Assets in Single-Employer Plans by substituting a new table for selecting the retirement rate category.
The new table will be used to determine the applicable expected...
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While contribution levels have remained consistent, a troubling trend is that many individuals increasingly have been tapping their retirement savings through hardship withdrawals or loans.
This is according to the latest data from Fidelity Investments’ Q3 2023 retirement analysis, which shows...
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Closing the coverage gap wherever and whenever possible is a significant industry priority in the face of potential federal involvement in private retirement plans.
One recently introduced bill from Sens. Bill Cassidy (R-La.) and Tim Kaine (D-Va.), The Helping Young Americans Save for Retirement...
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To better understand how people make retirement savings decisions, Goldman Sachs Asset Management (GSAM) recently collaborated with behavioral finance research firm Syntoniq to evaluate the factors that may influence Americans’ retirement savings tendencies.
In the resulting analysis, released...
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The windfall elimination provision (WEP) reduces the Social Security benefits of certain workers who also are eligible for pension benefits from jobs not covered by Social Security. It engenders active discussion, and a Nov. 20 hearing offered a fresh opportunity for people to weigh in on the WEP...
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