Retirement

Less than two-thirds of Americans are financially literate, which is why employers need to go beyond retirement education and give employees the resources needed to help them feel more financially stable, says a new poll.

Almost half (46%) of workers said they need to save $1 million or more by retirement, yet 40% of workers and 58% of retirees said their retirement account balances have decreased over the past 12 months, says a new survey.

If plan features are preventing many retirees from preserving their retirement assets, adding versatile decumulation options, such as installment services and ad-hoc withdrawals, can provide them with an array of options.

The new legislation will remove barriers for many small businesses, however, some are reporting they don't have the bandwidth or resources to deal with these benefit issues, according to a Fidelity report.

The ERISA Industry Committee, an employer advocacy group, implored the IRS in a letter to clarify how sponsors can implement new SECURE 2.0 features - and also offered recommendations for improving health care benefits.

The sweeping SECURE 2.0 legislation aspires to bridge the gap through incentives and mandates, however, a public policy organization is proposing a new retirement saving program modeled after the federal Thrift Savings Plan.

Many employees are not confident that they will have enough saved for a comfortable retirement.

Thanks to a new SECURE 2.0 provision that allows employers to offer financial incentives to start saving for retirement, participants can now earn up to $250 if they contribute to a plan for one year under a new program.