A recent Vanguard report sheds light on the pressing challenges faced by retirees across different income brackets. The findings reveal that lower income workers allocate a significantly larger portion of their pre-retirement income to meet their daily needs, leaving them with a substantial shortfall in retirement readiness — even when factoring in Social Security benefits.
Plan sponsors can take proactive steps to help participants better prepare for a secure retirement to ensure that all employees, regardless of income level, have a fighting chance at a comfortable retirement. Learn more about those key steps.
It is crucial for companies to regularly benchmark and compare their benefits packages to their industry peers in order to maintain their competitive advantage and status. Offering a competitive benefits package, however, can be challenging for plan sponsors due to budgetary constraints.
But one industry leader says a plan sponsor should ideally reflect the investment "necessary to attract and retain the talent needed to drive business success" in their "total rewards budget," which includes both benefits and compensation. That "right" amount of budget, he says, will depend on a number of factors. Find out more.
On October 31, 2023, the Department of Labor (DOL) released its “Proposed Retirement Security Rule: Definition of an Investment Advice Fiduciary.” If finalized, a new definition of an “investment advice fiduciary” under the Employee Retirement Income Security Act of 1974 (ERISA) would apply, likely resulting in more individuals becoming fiduciaries. Learn more.
More and more workers are taking hardship distributions from their 401(k) accounts, a recent report shows. At the same time, the New York Federal Reserve reported in August that credit card debt among U.S. households exceeded $1 trillion for the first time ever, with an increase of $45 billion in Q2 alone. In this challenging environment, how can plan sponsors support participants who may be struggling with high debt and help them avoid raiding their retirement savings to stay afloat? Learn more.
Did you know nearly half of women ages 25 and older lack access to a tax-advantaged, employer-sponsored retirement plan? Even among those women who are eligible for workplace retirement plans, average account balances lag far behind those of men. What can employers do to help? Learn how addressing the gender gap in retirement savings can lead to many tangible benefits for your organization.
If you're a young professional, did you know a Roth Individual Retirement Account (IRA) can help you build wealth and achieve your long-term financial goals? Find out more about investing in your future with a Roth IRA!
The relationship we forge with our future selves can greatly impact financial decision making in the present. Recent research revealed that subjects with a stronger connection to their future selves were more likely to delay gratification and make more prudent financial choices. But how can retirement plan sponsors help employees make the connection? Check out the "Future Self Tool" created by the Consumer Financial Protection Bureau.
A retirement plan may have one or more fiduciaries who have distinct responsibilities, though many individuals and committees may serve in multiple fiduciary roles. Here is a brief overview of the categories of fiduciaries.
With SECURE Act 2.0, there are a few mandatory changes taking effect in 2024 that retirement plan sponsors will need to comply with. These provisions require sponsors to work with their advisors, recordkeepers, and providers to develop a strategy for incorporating them into their plan design, as well as dealing with the cost implications that come with it. Also, learn about some Technical Corrections to SECURE 2.0 issued to the Treasury Department.
