Retirement Trends

The IRS announced today it will increase 401(k) contribution limits to $23,500 (from $23,000 in 2024), the same increase as last year, while limits for employees over 50 remains unchanged.

There needs to be a multi-faceted approach, spanning policy reform, organizational change, individual savings, and expanded philanthropic support, according to Just Futures' George Guerrero.

The study found that only 11% of Gen X and 31% of boomers say they have saved the often recommended, 10 times or more of their current annual salary for retirement.

Employer payments of principal or interest on an employee's "qualified education loan" may be eligible for tax-free treatment up to the $5,250 annual maximum, as part of an employer's "educational assistance program."

Employers should take a holistic view of their 401(k) that considers plan design, employee profile and behaviors and communication programs so that the plan can be tailored to the profile of the employees at their firm, says a John Hancock report.

Company executives see labor markets normalizing, after soaring during the post-pandemic period.