Retirement Trends

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.

As the new law rolls out, some plan sponsors are questioning whether the government's capabilities to negotiate with Medicare on lower drug prices could prompt manufacturers to increase medication costs for employer plans.

While 83% of employers offer online tools on how to meet retirement readiness goals and 69% offer financial wellness services, only 27% set retirement readiness objectives for participants, according to PGIM DC Solutions.

While litigation is not widespread, it's important for plan sponsors to look at operations and shore up practices since there was action on 43 defined contribution cases during the first quarter of 2023, according to Mercer.