There's been a lot of chatter about retirement readiness. I like it. I've been measuring it for more than a decade now. It's the key metric for anyone interested in retiring in comfort. Granted, there's still a little subjectivity in it (e.g., how much of your pre-retirement salary do you need when you retire), but it's a process that generates an honest, measurable and (hopefully) attainable goal-oriented target that's on the right track.
But let's agree on one thing: Only people can be retirement ready. It's meaningless to say a plan is retirement ready.
We've all seen it. There's a trend out there. People of all sorts – vendors, plan sponsors and even reporters – are trying to determine the best measure of retirement readiness. The best of these ideas focuses on accumulating each individual measure of every participant in a plan to gauge how effective the plan has become to encourage employees to become retirement ready (see "Retirement Readiness: The One True 401(k) Benchmark Every Fiduciary Should Measure," FiduciaryNews.com, Sept. 4, 2013). They're identifying the key components needed to determine if and when an employee is retirement ready.
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