A recent Vanguard report sheds light on the pressing challenges faced by retirees across different income brackets. The findings reveal 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 with tips from our latest blog.
Members of the House of Representatives recently raised concerns regarding the Department of Labor’s (DOL) Employee Benefits Security Administration (EBSA) investigations into plan sponsors, citing them as lengthy and burdensome, and called for reform. To learn what plan sponsors can do to avoid drawing DOL scrutiny and help promote a more favorable outcome, review our latest blog.
After a 3-year deferment period for student loans, interest begins to accumulate again on September 1, while payments resume October 1. What does this mean for plan sponsors? As employees prepare to, once again, deal with the financial burden of student loans, sponsors have an opportunity to help lessen the load and ensure retirement contributions don’t fall to the wayside — learn how to help your plan sponsors today to prepare for their future tomorrow.
Companies typically devote considerable attention to assisting their participants nearing retirement, yet they should also be focusing on getting their youngest workers enrolled — and contributing as soon as possible. So, what do we actually know about Gen Zer's' attitudes on retirement planning? Read on to learn.
According to recent data from the National Council on Aging and the Women's Institute for a Secure Retirement, nearly half of women ages 25 and older lack access to a tax-advantaged, employer-sponsored retirement plan. Beyond closing the gender pay gap, employers can help women better prepare for a more secure retirement in a number of ways — read on to learn these strategies.
Mistakes are inevitable in drafting legislation. This is especially true in tax legislation, as tax law is complex and more nuanced as compared to other areas of the law. Congress has informed the Treasury Department they intend to make four technical corrections to SECURE Act 2.0. Here are those changes:
Recent changes to the 2023 Form 5500 are intended to improve reporting of financial information and plan expenses. There are new compliance questions concerning safe harbor status and how a plan satisfied certain discrimination and coverage tests. To see how requirements compare from previous years, review our recent blog for answers.
In the future, Plan Sponsors will have to pay more attention to allocating unused balances in forfeiture and fevenue credit accounts. A proposed rule pertaining to allocating forfeiture account amounts has an effective date of January 1, 2024. To learn more about these changes, read our latest blog.
According to data released by the Investment Company Institute, retirement assets in the US grew by 3.5% quarter over quarter to $35.4 trillion, as of the first quarter of the year. Some good news is the data shows participants and IRA holders have not reacted to market volatility. See where the money resides in this short read.
High participation rates don't always translate to high deferral rates. By adopting a mix of strategies, plan sponsors can help encourage higher deferral rates, foster a culture of proactive retirement planning and help drive positive long-term outcomes for workers. If your employees have "fallen into the escalation gap," speak with your retirement plan advisor. See how a few strategies could benefit your retirement plan goals in our latest blog.
From recent college grads struggling with student debt to seasoned professionals planning an imminent retirement, participants’ financial needs and goals are as diverse as the workforce they’re part of. In response, many organizations have chosen to implement a multi-faceted financial wellness offering, yet a one-size-fits-all approach simply falls short. To ensure your employees are left feeling confident with their wellness programs, see how you can educate them.
You may be eligible for a valuable incentive, which could reduce your federal income tax liability, for contributing to your company’s 401(k) or 403(b) plan. If you qualify, you may receive a Tax Saver’s Credit of up to $1,000 ($2,000 for married couples filing jointly) if you made eligible contributions to an employer sponsored retirement savings plan. Use our chart to determine your credit for tax year 2023.
The advantages of financial wellness programming for employers are well-documented and may include lower healthcare costs, higher worker retention, reduced absenteeism, and increased productivity. Although, not all financial wellness plans are created equal and boosting utilization rates can be an ongoing challenge. An effective omnichannel strategy can help plan sponsors engage more employees, regardless of their level of investing experience or financial literacy.
In December 2022, Morningstar adjusted its recommended starting annual withdrawal rate for balanced retirement portfolios from 3.3% to 3.8%. The revision was based on an assessment of factors including recent equity valuations, bond yields, and inflation. This new rate, however, is still less than the 4% figure commonly cited in financial planning literature. See how plan sponsors can help with uncertainties down the road in this short read.
