Retirement

While 68% of workers and 74% of retirees are confident they will have enough money to live comfortably throughout retirement, this is not a significant increase from last year, according to a Employee Benefit Research Institute report.

According to the DOL, the new fiduciary rule levels the playing field for insurance agents, brokers, financial planners and registered investment advisors to adhere to a best interest standard when providing investment advice.

To be well-positioned for the possibility of a Department of Labor audit, plan sponsors need to watch out for common errors, which include late deposits of employee contributions into the plan, failure to implement employee deferral elections and failure to provide required notices.

The Federation of Americans for Consumer Choice's lawsuit states that the Department of Labor's new "rushed" fiduciary rule is similar to a proposal struck down by the federal appeals court a decade ago.

Despite an uncertain economic environment, retirement plan participant outcomes thrived in 2023, bolstered by strong growth in employee contributions, according to a preview of Vanguard's annual "How America Saves" report.

Employers can help employees save by automating and incentivizing emergency savings, but it's key to customize messaging that is unique to a specific employee demographic to increase the likelihood of them taking action.

The new Saver's Match program launches in 2027, as a provision of SECURE 2.0, and allows low-income employees to receive a 50% federal matching contribution of up to $1,000, in addition to any employer match.

Against this retirement planning backdrop, however, employees are saving less for retirement, with the average amount now saved at $88,400 - a decrease of $10,000 from 2021, according to a Northwestern Mutual study.