Talking Points

Reported by

47%

of those entering the job market—ages 20 – 24—contribute to a 401(k)plan. Likewise …

50%

of workers 65 and older still contribute to their plan.

50%
through
90%

of workers in small and midsize businesses consistently participate in their 401(k) plan regardless of geography, industry or age.

Source: HSA Bank


 

HSA

A benefit of health savings accounts is that people can make out-of-pocket qualified health-care purchases and reimburse themselves tax-free, via the account, once they enter retirement.

Source: Human Interest

 

 

Allocations to Self-Directed Brokerage Portfolios

Mutual funds
ETFs*
Cash
39%
17%
12%
36%
20%
14%
34%
24%
16%
Baby Boomers
Generation X
Millennials
*Exchange-traded funds. Source: Charles Schwab

What 4% Rule?

What 4% Rule

Many U.S. investors think they can withdraw 10.1% per year in retirement and not run out of money, while experts suggest a drawdown of 4% annually.

Source: “Schroders Global Investor Study 2019”

Average Participant Deferrals On the Rise

2016
6.8%
2017
7.1%
2018
7.7%
6.0
6.5
7.0
7.5
8.0
Source: Plan Sponsor Council of America