Retirement Regulation

Asset manager BlackRock has launched LifePath Paycheck, which gives employees access to guaranteed income through a target date fund, allowing DC plans to switch some of an enrollee's investments into an annuity at age 55.

The $2,500 Pension-Linked Emergency Savings Account option takes a small amount from paychecks (3%) and is easy to set up, said Commonwealth, which took a close look at new emergency savings options in SECURE 2.0.

Next year, the new limits for health savings accounts and high-deductible health plans are a slight bump, following 2024's largest-ever increase to the amount employees can set aside in their accounts.

The Retirement Security Rule, finalized on April 23, is polarizing and is sure to face significant legal challenges (one lawsuit has already been filed), because the rule applies a new, heightened fiduciary duty to the insurance industry.

Younger workers are benefiting from auto enrollment by participating at higher rates than prior generations, while the Saver's Match program allows low-income workers to receive a match of up to $2,000 into their 401(k)s.

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.