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Retirement Income
The Treasury Department has blown out the candles on the first birthday cake for myRA, the retirement plan the federal government implemented in November 2015. The retirement toddler earned a mixed report card according to a recent report.According to 401kspecialistmag.com, myRA’s Treasury parent...
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A new report estimates that health care for a 65-year-old couple retiring this year will cost 6% more than a year ago — the highest estimate since 2002.According to Fidelity’s Retiree Health Care Cost Estimate, a 65-year-old couple retiring in 2016 will need an estimated $260,000 to cover health...
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Most 401(k) plans offered investment menus that included options proprietary to the plan’s recordkeeper, but proprietary investments accounted for a smaller share of total 401(k) assets, according to The BrightScope/ICI Defined Contribution Plan Profile: A Close Look at 401(k) Plans, 2014.While...
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The good news: a new survey finds that a majority of Americans are making long-term plans — far more than are making New Year’s resolutions. The bad news? What they consider long-term.The New York Life survey of more than 1,800 adults ages 30 or older (conducted by Ipsos Public Affairs) found that...
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The Pension Benefit Guaranty Corporation (PBGC) has updated the information available on its website concerning its single-employer early warning program. The updated information can be found on PBGC’s Risk Mitigation & Early Warning Program webpage.The PBGC enhanced and reorganized the...
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One certainly could argue that many Americans act as though at retirement some kind of benevolent elf will drop down their chimney with a bag full of cold cash from the North Pole.They behave as though, somehow, their bad savings behaviors throughout the year(s) notwithstanding, they’ll be able to...
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A new report finds that the retirement benefits of 100 CEOs is equal to the entire retirement savings of the 41% of U.S. families with the smallest nest eggs.On average, the top 100 CEO nest eggs are large enough to generate for each of these executives a $253,088 monthly retirement check for the...
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While the markets were volatile before and after the November elections, consistent 401(k) participants saw solid growth in their portfolios last month.The average account balance for younger (25-34), less tenured (1-4 years) workers — where smaller balances mean that contribution flows generally...
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I can remember as a kid paging through the pages of various Christmas catalogs, earmarking the pages that contained the various things that I hoped Santa Claus (or his emissaries, my parents) would take as hints.These days such things have been replaced by online “wish lists” — and if they’re not...
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A federal judge granted class action status in two very different lawsuits Dec. 14, though both involved challenges to actions regarding 401(k) plan investments.The first of the lawsuits, Brotherston v. Putnam Investments, LLC (D. Mass., No. 1:15-cv-13825, electronic notice of order granting class...
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Taxpayers older than age 70½ generally are required to receive payments from their IRAs and workplace retirement plans by New Year’s Eve, the IRS reminds. The IRS issued the reminder on Dec. 14 in IR-2016-170.The IRS notes that for 2016, the limit for a 401(k) is $18,000 and that for those age 50...
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Institutional investors are anticipating some significant asset allocation changes over the next two years, according to a new report.However, many institutional investors in the U.S. are, on a relative basis, adopting a wait-and-see approach. For example, compared to 2012, the percentage of U.S....
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Published reports indicate that the U.S. Senate is looking to pass a comprehensive tax overhaul next year using the budget reconciliation process.Senate Majority Leader Mitch McConnell (R-Ky.) said at a press conference Dec. 12 that the plan to enact both changes to Obamacare and comprehensive tax...
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Say “infrastructure project” and what usually springs to mind is an overpass that has crumbling concrete with a reinforcing bar or two — yikes — visible. But a recent article takes a more expansive view of what constitutes infrastructure and the need for its repair, and argues that it includes...
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To judge by the headlines, if there’s anybody in more trouble when it comes to retirement planning than Boomers, it’s Millennials. But are they really?Millennials are saving for retirement — likely earlier, and at higher rates than you did when you were their age.I’ve seen a number of surveys that...
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Are workers who have a financial plan more likely to save, or are workers who save more likely to have a financial plan?A new study found that, regardless of their incomes, people who have a financial plan reported saving a median of 10% of their salaries toward retirement, while those without a...
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Life is fraught with inconsistency, and a new study by Lincoln Financial Group (LFG) shows that extends to providing services to governmental retirement plans. But the study also suggests the antidote to those inconsistencies and to participation and deferral rates that are not as high as plan...
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Automatic enrollment can be an effective, low-impact way to increase participation in employer-provided retirement plans — and, in the process, further the real, ultimate goal of boosting retirement readiness. But we were taught that every action has an equal and opposite reaction, and that maxim...
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The American Retirement Association Government Affairs Committee on Dec. 2 filed comments with the IRS providing recommendations on the documentation needed to substantiate a hardship distribution or participant loan.The ARA says in the letter that it generally agrees with the IRS that there should...
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Single premium pension buy-out sales hit almost $6 billion in the third quarter of 2016, according to a recent report by the LIMRA Secure Retirement Institute.This is the highest level of single premium pension buy-out sales for any third quarter since 1990 in LIMRA’s research. It also is the most...
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