Retirement planning

Plan sponsors should realize that now is the time to act and acknowledge that participants, many of whom are unknowingly in heavy equity allocations, will jump out as we hit more realistic volatility cycles.

Clients are advised to keep some of their savings in cash and focus on their long-term prospects.

“It's really important for employees to know where they’re at with investments, and that employers educate them so that they don't make rash decisions,” says Tara Mashack-Behney, president of retirement plan consulting firm Conrad Siegel.

“Find ways to generate income,” says one financial planner.

While some retirees have seen a substantial increase in spending, many others are enjoying financial freedom.

Industry insiders see momentum building for more retirement legislation that could upend the benefits world.

Aside from refinancing, retirees are advised to consider downsizing their homes to reduce overall spending.

With hardworking African-American and Hispanic workers far more likely to cash out than other participants, our nation has a serious retirement-saving crisis on its hands.

“The financial burden of student loans is a major reason fewer employees are taking advantage of 401(k) programs,” Scott Thompson, CEO of Tuition.io, says.

One of these snags is taxation on clients’ retirement income, which can hurt their cash flow.