A401(k) scorecard from Bank of America Merrill Lynch is the latest report to indicate that defined contribution retirement plans are strengthening. Balances, contribution rates and participation are all up – but confidence is not. Research from Unum and the Employee Benefit Research Institute says workers still feel financially insecure, and many are still planning on postponing retirement for financial reasons.
In May, the Plan Sponsor Council of America and the Principal Financial Group reported great strides in 403(b) retirement plan contributions for nonprofits. The same month, Fidelity Investments said that small businesses’ plans have bounced back since the Great Recession. All of this ahead of the Bank of America Merrill Lynch report, in June, which says the year is off to a great start for DC plans overall.
