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A recent study commissioned by the ALI Retirement Income Institute has revealed a stark reality: A substantial portion of America’s Baby Boomer population is ill-prepared for retirement. As the retirement countdown begins for Peak Boomers, plan sponsors have an opportunity to implement impactful strategies that can help increase the financial security of employees entering their golden years.
Americans are increasingly getting financial and retirement planning guidance from social media, risking exposure to misinformation, harmful advice and outright scams. Alarmingly, this includes almost eight in 10 millennials and Gen Zers. Workers turning to these platforms can undercut the benefit of employer-sponsored financial wellness initiatives and put themselves at risk. But there are ways to help ensure sound advice prevails.
According to a December 2023 survey from Schroder’s, nearly half of non-retired Gen Xers, those born between 1965 and 1980, have not done any retirement planning whatsoever. So how can employers help their "Sandwich Generation" workers consider planning for retirement?
Retirement planning often directs attention toward mid-career 401(k) participants and those nearing retirement, but what about the youngest members of the workforce — the 18- to 20-year-olds, or those even younger? How can proposed Legislation aim to help young workers put time on their side in retirement planning?
A recent Vanguard report finds that individuals in the lowest income bracket spend a staggering 96% of their pre-retirement income on daily needs, compared to the highest bracket spending only 43% on average. This income spend-down disparity leaves lower and middle class individuals with a substantial shortfall in retirement readiness. Plan sponsors can take proactive steps to help participants better prepare for a secure retirement with these simple tips.
More and more workers are taking hardship distributions from their 401(k) accounts, as individual household debt skyrockets. In this challenging environment, how can plan sponsors support participants who may be struggling with high debt and help them avoid raiding their retirement savings to stay afloat?