John Hancock Dashboard Analyzes Retirement Readiness
It also identifies opportunities to improve participant outcomes.
Tag: deferral rate
Average 401(k) Account Balance Has Soared 466% in Past 10 Years
Fidelity analyzed the balances of those who remained invested in their 401(k) in the decade following the Great Recession of 2008 and found that the balances went from...
Average Deferral Rates Reach 10-Year High of 8.6%
And the use of 401(k) loans fell to a nine-year low of 22.5% in 2018, according to T. Rowe Price’s annual participant data benchmarking report.
Helping Participants Overcome Savings Biases
Starting people off with a deferral rate of 3% is actually a disservice, experts agree.
Plan Focus
Employer Contributions on the Rise
In 2017, companies contributed as much as their workers did to DC plans
More Efforts Needed to Increase Retirement Plan Participant Savings Rates
While automatic enrollment gets participants into plans, a sizable segment are starting their average contributions at a minimum 3.3% rate and failing to take any additional action to...
Setting Defaults and Auto-Escalations Too Low May Undermine their Power
In addition, a person invested in a stable value fund versus someone invested in a target-date fund could end up with a balance as much as 59% lower,...
Young Savers Are the Group Most Likely to Meet Retirement Goals
Workers under age 35 are realizing they need to start saving now, according to Ascensus.
Americans’ Top Financial Concern is Retirement Savings
However, only 33% are confident about their retirement readiness.
403(b)s Adopting Best Practices
Their use of an adviser acting as a plan fiduciary has increased by 40% in the past four years, according to the Plan Sponsor Council of America.
Auto-Portability Would Help Reduce the Retirement Deficit Significantly
If combined with the Automatic Retirement Plan Act of 2017, the retirement savings shortfall would be reduced by $932 billion, or 22.6%, according to EBRI.
Participants’ Retirement Outlook Has Improved
Fifty-two percent think they will be able to retire at their ideal retirement age, and 52% say they either somewhat or strongly agree that their savings will last...
Preparing Participants for Retirement Is Sponsors’ Top Concern
To help employees achieve their savings goals, 82% of sponsors are making changes to plan design, and 83% are updating their investment menus.
Servicing Strategies
Stretching the Match
An adjustment to the formula can enlarge participants’ savings
Simplifying Information in 401(k) Plans Doesn’t Lead to Better Decisions
The “Less Is Not More” study set out to determine whether presenting retirement plan information in a more compact and accessible way increases participation and results in better...
Average Deferral Rate Reaches 8.3%
Additionally, the number of plans with an initial 6% deferral rate for automatic enrollment now surpass those with 3% as the initial rate.
Americans Saving an Average of 7.6% for Retirement
Men are saving an average of 8.9%, and women, 6.4%, PenFed Credit Union found in a survey
Two Thirds of Millennials Have No Retirement Savings
Only one-third are participating in their retirement plan