Chances are, your parents have told you to max out your 401(k) plan. That’s good advice, but the hard truth is that your 401(k) plan is highly likely to fall short. To live comfortably in retirement, our research shows, you will almost surely need more.
The vast majority of Americans are saving too little to fund their future retirement needs, and US defined contribution (DC) plans cannot single-handedly make up the difference. The American retirement system is in crisis. (more…)
Probably the best way to connect US defined contribution (DC) plan participants with the angst-reducing benefits of managing volatility is through a plan’s qualified default investment alternative (QDIA)—especially if the QDIA is a target-date fund. (more…)
The wealthy will likely see higher 2013 income taxes. One of the newest additions to the tax bill is the 3.8% Medicare surtax. By planning ahead, you may be able to reduce the tax bite—or possibly avoid being bitten altogether. (more…)
We are optimistic that a bright future lies ahead for retirement, despite all the concerns that Americans feel today. (more…)
When it comes to planning for retirement, we’ve been setting US workers up to fail. (more…)
Two-thirds of US defined contribution (DC) plan participants say that a secure retirement income stream is the most important feature they’re looking for, as we noted in our seventh annual survey report. But US workers rarely convert their retirement savings to lifetime income by purchasing a traditional fixed annuity. What’s standing in the way?
Target-date funds have gained strong approval among US defined contribution (DC) plan participants who use them, as I have written before. But results from our seventh annual survey suggest that many US DC plan participants still have some mistaken notions about what target-date funds are…and are not. (more…)
Roughly 90% of defined contribution (DC) savers in the UK still buy fixed-rate immediate annuities at retirement. Does this make sense for UK workers, and is there a lesson to be learned for the US? (more…)
Market losses and continuing volatility have badly shaken US workers’—particularly older workers’—confidence in the prospects of a comfortable retirement, according to our recent survey of US defined contribution (DC) plan participants. (more…)