Retirement

Four years from now, the median account balance of a defined contribution plan assets will reach $150,000, up from $100,000 today—a decent-sized nest egg by most standards, but a far cry from the $1 million or more experts say is needed to sustain a retiree’s lifestyle and health care costs.

In light of the recent market volatility, a new report from Fidelity Investments analyzing the performance of 401(k) balances between Oct. 1, 2008 and June 30, 2011 is quite telling — giving a testimonial to the value of sticking with the stock market even amid the worst declines.

Although employers are growing more comfortable with auto-enrolling employees in a retirement plan — 40% of employers do so, statistics show — retirement income products are a relatively new frontier, and the products have yet to gain traction among plan sponsors.

Middle-income baby boomers, those earning between $30,000 and $74,000, are vastly underserved in terms of preparing for retirement, according to a new Insured Retirement Institute report, “Middle-Income Boomers and Retirement: Tapping the Significant and Underserved Middle-Income Market.”

Middle-income Baby Boomers, those earning between $30,000 and $74,000 are vastly underserved in terms of preparing for retirement, according to a new report from the Insured Retirement Institute, “Middle-Income Boomers and Retirement: Tapping the Significant and Underserved Middle-Income Market.”

Forty-two percent of workers are living paycheck to paycheck – another reason clients have to help employees wring maximum value from their compensation.

A recent report from HSBC shows that people across the West -- including the U.S. -- are generally pessimistic about their retirement prospects while those in the East are relatively optimistic. And yet, by every objective measure, citizens in Western developed countries control significantly more assets per capita than their counterparts in Eastern emerging economies. This inconsistency begs the question: Are we ever satisfied?

The U.S. Department of Health and Human Services issued guidance on how a plan sponsor can demonstrate that it is not using reimbursements received under the Early Retiree Reinsurance Program as general revenue by maintaining the level of its contributions to the plan. Leeds & Schoner take you through the loops.

Rather than offer the complete lineup of a target-date series in their 401(k) plan, sponsors are selecting only those funds that fit the age and demographics of their employees. This could result in under-funded target-date funds that could put the entire lineup in jeopardy, according to a new report, “Trends in Date-Date Portfolios on Recordkeeper Platforms,” from Financial Research Corp.

Rather than focus on the traditional notion of saving for retirement, asset management firms serving affluent investors with a minimum of $100,000 to invest and who are between the ages of 40 and 60 should understand that most of these people never intend to leave the workforce, according to Hearts & Wallets.