Data & Research January 13, 2015

Plan Participants Want Estimate of Lifetime Income

Retirement plan participants say they want their retirement benefit statements to include an estimate of lifetime income.
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A study finds nine out of 10 participants want to see the estimate, which helps workers understand how much lifetime income could be generated from their retirement plans. The study by the Insured Retirement Institute (IRI) also reveals more than 90% of consumers want their employers to provide online retirement income calculators, allowing workers to select their own assumptions to calculate estimates of lifetime retirement income.

In light of its research, IRI believes the lifetime income estimates would improve participants’ understanding of their retirement plan options, leading to better decision making and improved savings. Cathy Weatherford, IRI president and CEO explains, “More than 75% of the plan participants who took part in this study said they would increase their contributions after seeing their retirement income estimates. And by no small margin. These respondents would increase their contribution level by four percentage points or more.”

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In May 2013, the Department of Labor’s Employee Benefits Administration issued an Advance Notice of Proposed Rulemaking  about requiring benefit statements to provide estimated lifetime income payments based on a plan participant’s accrued benefits and projected future accrue benefits. IRI states its support for the concept of providing lifetime income information, but also advises the DOL to provide plan sponsors with flexibility in providing the estimates, as different plan participants want different information about how much income their savings might generate.

The “Consumer Preferences for Lifetime Income Estimates on 401(k) Statements” survey was conducted with 1,500 401(k) plan participants between the ages of 21 and 65. The report is available here.

Deals & People January 13, 2015

West Texas Adviser Affiliates with PlanMember Securities

Shane Hall Financial has partnered with PlanMember Securities Corporation as a PlanMember Financial Center.
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The affiliation expands retirement investment planning and financial education opportunities for educators and employees of non-profits in the West Texas Region.

PlanMember is a national broker/dealer, investment adviser, and member of FINRA/SIPC. With $6 billion in assets, the company provides retirement planning to the public education and non-profit sectors, and specializes in the fee-based 403(b), 457(b), and 401(k) marketplace.

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By affiliating with PlanMember as a Financial Center, independent advisers can access the support resources and market access of a national company, while still maintaining their local identity. The national company currently upholds 27 Financial Centers.

Shane Hall Financial advises educators and support staff in West Texas school districts about their Teachers’ Retirement System (TRS) pensions, optional retirement plans, and social security. With 15 years’ experience, the company maintains more than $60 million of assets under management. Advisers are approved by the TRS of Texas, through PlanMember and other agreements.

“I began my career as an adviser with PlanMember in 2000, but our recent affiliation as a PlanMember Financial Center opens up new opportunities for us to provide expanded services and products to our clients,” says Shane Hall of Shane Hall Financial. “Drawing on the resources of a top-rated national company while keeping our local presence will open doors to new opportunities and help us build new relationships in the education community in West Texas.”

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