Tests – the word alone is enough to make the most studious of us sweat. When placed in the context of 401(k) plans, i.e., determining whether your plan passes non-discrimination tests, anxiety levels can go through the roof!
Employers can learn to adjust to the demands of inflation by working closely with retirement plan advisors. Here are a few good reasons to work with an advisor to understand inflation while still helping your employees prepare for retirement and work towards financial wellness.
Perhaps due to early experiences with annual tax returns, many hear the word refund and begin running down their wish list of ways to spend this extra money. However, when it comes to 401(k) refunds, or corrective distributions, the excitement should be dialed back.
People are living longer, which means they may need their retirement savings to last decades. As a result, nearly half (48%) of participants are concerned about outliving their retirement savings.[1] Many Americans don’t know how to transform their savings into retirement income.
Once again the Supreme Court has made it clear that a prudent fiduciary process is required of all ERISA-governed retirement plans. The landmark case, Hughes v. Northwestern, addressed complicated issues surrounding how the fiduciary process is a requirement for retirement plans. The big takeaway for those that manage a retirement plan is that there are no shortcuts, and the fiduciary process is non-negotiable.
As many employees look ahead to retirement, 70% of workers feel somewhat confident that they’ll have enough money saved to retire on time and then live comfortably.[1] However, forward-thinking employers have the ability to help their employees work toward a confident and happy retirement. According to the 2021 Retirement Confidence Survey from the Employee Benefit Research Institute (EBRI), 33% of American workers feel very confident in their ability to live comfortably in retirement. That means that over 64% of Americans (or 2/3 of your workforce) feel prepared for their retirement future.[2] To help boost confidence, here are 4 forward-thinking tips proactive employers can do to help improve your employees’ retirement outlook:
