In Q4, significantly more participants increased their retirement contribution rate, led by younger generations – Gen X-ers contributed the most, but millennials saved the most, according to a new BofA report.
Most (92%) employees agreed that it was important to have choice in and control of the investments in their plans and more than eight out of 10 said that their DC plan offered “a good lineup of investment options," according to the Investment Company Institute.
A third of Americans don’t believe retiring in their current location makes financial sense, which is why Nationwide Financial Research’s new data can help advisors offer specific financial guidance to those in the Northeast, Midwest, West and the South.
In addition, 90% of all nonprofit employees are eligible to participate in plans, a survey high, and likely expanded due to another SECURE 2.0 provision allowing long-term, part-time employees to participate, according to a PSCA survey.
The Saver's Match program, which launches in 2027, allows low-income employees to receive a 50% federal matching contribution of up to $1,000, in addition to any employer match – and will “significantly boost retirement wealth,” says Morningstar Center for Retirement.
Knowledge is not the same as action, especially when it comes to personal finance, says a recent MDRT survey, which offers the best ways to close the gap between consumers' knowing what is best for their finances and actually taking those steps.
There are currently over 600,000 micro 401(k) plans in the U.S., with less than $5 million in assets, and that number will increase to more than 1 million, driven in part by state mandates and federal tax incentives, according to a new Cerulli report.
Participants contributed an average of 7.8% of pay (up from 7.4% in 2022), and employers contributed 4.9% of pay (up from 4.7%) for a combined savings rate of 12.7%, according to PSCA’s annual survey of 401(k) plans.
A new IRAlogix survey raises concerns over a rapid depletion of retirement savings, and provides guidance to employers to help pre-retirees to make a decumulation plan.
Offering employees one-on-one access to financial professionals as part of their plan can help women employees get retirement guidance that they might not otherwise pursue, according to Corebridge Financial.