Investment Instruments

Most Social Security reform proposals would result in fewer benefits for future retirees, but if the program pays out less in benefits, the payroll taxes needed from younger workers to support the program would be lower than they would be to fully fund benefits under the current program.

Companies are restoring plan contributions that were reduced or suspended since the beginning of 2008, according to the Plan Sponsor Council of America. Many companies are increasing or adding new contributions to their plan.

Workers in the south and west have the lowest participation levels in employment-based retirement plans, while workers in the upper Midwest, mid-Atlantic and northeast had the highest levels, according to the Employee Benefit Research Institute.

With only 20 percent of small businesses offering retirement plans, financial advisors are missing out on a lucrative opportunity.

While just over half of the estimated 315,000 retail investment advisors in the United States currently support at least one 401(k) plan, only 7% of advisors are heavy plan producers with $25 million or more in 401(k) assets under management, according to a new report.

Contract or self-employed workers who do not have access to company-sponsored retirement plans should explore the many options out there to save on their own. There are many retirement savings vehicles available to contractors, as long as they are pulling in a steady stream of income.