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Retirement Income
The Retirement Enhancement and Savings Act (RESA, S. 3471), which would amend the Internal Revenue Code to encourage retirement savings, was placed on the Senate’s legislative calendar by Sen. Orrin Hatch (R-Utah) Nov. 16.Hatch, Chairman of the Senate Finance Committee, also placed the Miners...
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October has long been known as the worst month for U.S. stock performance — but, with apologies to Charlie Brown, this year the average 401(k) balance got a rock for trick-or-treat.The market hit older (55-64) workers with more seniority (20-29 years of tenure) harder — their average account...
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October turned out to be a pretty rough month for stocks — so how did 401(k) participants respond?Not much — as generally turns out to be the case — and those who did respond moved toward fixed income options.October was another light month of trading for 401(k) investors. According to the Aon...
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What did 401(k) participants do in the first half of 2016 that they didn’t do in 2015?Not much, according to “Defined Contribution Plan Participants’ Activities, First Half 2016,” the Investment Company Institute’s (ICI) latest study of retirement plan savers’ actions. The study, based on DC plan...
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Younger generations always face financial stresses of various kinds. There are still some who faced the Great Depression as young people, for example, and others who dealt with inflation in the 1970s, energy crises and various recessions. So the current young generation is not unique in facing...
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The great majority of people face financial stresses of some kind, and that includes retirees. A recent article takes a look at some of the key challenges they face and their impact on retirement benefits.In “Retirees at Risk: Five Key Challenges Retirees Face and the Impact on Their Retirement...
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The funded status of the 100 largest corporate pension plans improved in October, says a recent report. The actuarial consultant firm Milliman says that their funded status got stronger to the tune of $28 billion.Their funded status in October was 1 percentage point better in October than it was in...
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The Pension Benefit Guaranty Corporation’s deficit grew by approximately 25% from 2014 to 2015, according to a new report from the Congressional Research Service (CRS). The report notes, however, that despite the bigger deficit and estimates of more to come, there is good news on the horizon as...
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Workers think they understand benefits — but what if they don’t?A new survey finds that 80% of working Americans (at least those responding to the survey) say they understand their benefits very well, and nearly as many — 74% — feel very confident in the benefits selections they made during their...
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The increasing cost of health care seems to be coming out of retirement’s pockets, according to a new survey.According to the 2016 Health and Voluntary Workplace Benefits Survey (WBS) conducted by the non-partisan Employee Benefit Research Institute (EBRI) and Greenwald & Associates, half of...
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New research considers the potential impact of longevity income annuities, and finds some real benefits in retirement security.Back in 2014, the Treasury Department issued a rule that essentially allows employees to convert part of their IRA or 401(k) balances into a longevity annuity. Under that...
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There’s an old saying: “You can lead a horse to water, but you can’t make him drink.” It’s the lament of many a retirement plan professional who has tried to persuade an employer to offer a workplace retirement savings plan for his/her workers, only to be rebuffed.Moreover, it’s a sentiment...
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A new report quantifies the persistent, if shrinking, gender gap in financial wellness.According to the 2016 Gender Gap in Financial Wellness study by Financial Finesse, that gap has closed to 8.9 percentage points, a 37% improvement since 2012. However, the report cautions that part of the closure...
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A key element in retirement planning is the rate of return assumption — and a new report takes a look at not only what return assumptions are common, but the odds of achieving it.Research Affiliates looked at the default returns built on hundreds of underlying participants, and found that the...
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The Pension Benefit Guaranty Corporation (PBGC) announced on Oct. 28 that the guarantee limit for single-employer plans that fail in 2017 will be higher than the limit that applied for 2015 and 2016.The maximum annual guarantee limits for 2017 include the following.Age 70Annual Maximum Single Life...
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Defined contribution plans have supplanted defined benefit plans as the most prevalent retirement plan offered through places of employment. But that certainly doesn’t mean that they are static. A recent paper argues that those that design, offer and administer them should not rest on their laurels...
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The 2016 general election is upon us, a knock-down, drag-out fight between two intensely polarizing figures — Hillary Rodham Clinton and Donald J. Trump — vying for votes among an increasingly polarized electorate.In this intensely partisan political atmosphere, it is easy for the topic of saving...
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One might think that retirement income solutions would be more prevalent among larger plans — but you’d be wrong, according to a new survey.While 64% of plan sponsors state that it is a high priority to implement a retirement income solution, only 16% currently have one in place, according to a...
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Halloween is the time of year when one’s thoughts turn to trick-or-treat, ghosts and goblins, and things that go bump in the night. But what are the things plan sponsors are scared about?Getting sued.Plan sponsors will often mention their fear of getting sued, and little wonder. The headlines are...
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The IRS on Oct. 27 announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. The 2017 limits are contained in Notice 2016-62.Increased LimitsThe IRS has increased the following limits for 2017 from 2016 levels:For an...
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