Retirement benefits

Historically, the retirement industry hasn't been required to publish all fees and expenses associated with 401(k) products. That's about to change.

Whaddaya know? All this time, I thought it was just retirement plan participants who didn’t understand the fees they were paying. Turns out, according to a recent Spectrem Group study, plan sponsors don’t understand plan fees all that well either — only 45% of plan sponsors fully understand their retirement plan fees, according to the report that evaluated some 600 plan sponsors with assets under management of $10 million to $200 million. …

It is certainly not news that most Americans are ill-prepared to retire with 70% income replacement. We can blame high fees, which the press and regulators seem to focus on, and a decade of low or negative returns, but the real problem is that most participants are not saving enough and are not actively engaged in the process of preparing for retirement. Then, some industry professionals are still implying that their services are free. But with sweeping disclosure regulations about to become law, that myth will be quickly debunked. It's time to debunk other myths and tell plan sponsors and participants the hard truth.

The top benefit advisers take their clients' needs very seriously. But Anthony (Tony) Madera, winner of this year's EBA Retirement Plan Adviser of the Year award, seems to take them personally.

Longer life expectancies and the individual responsibility for retirement savings are combining to challenge conventional thinking and to re-shape the relationships between employers and their older employees. Check out five significant practical benefits for plan sponsors.

With investors falling in and out of love with Wall Street at a rapid pace, some financial advisers are finding themselves playing a new role — that of marriage counselor. As financial markets remain in turmoil, couples are getting more anxious as they watch their nest eggs wither.

This week, LIMRA reported variable annuity sales increased 19% to $80.7 billion in the six months ended June 30 compared with the same period a year earlier. Today, the Insured Retirement Institute (IRI) echoed the increase, reporting first-quarter sales at $40 billion, up 2% from $39.2 billion in the previous quarter.

Historically, the retirement industry hasn’t been required to publish all fees and expenses associated with 401(k) products. That’s about to change. The Labor Department noticed that the majority of 401(k) plan sponsors are in the dark regarding the fees they’re paying. To add insult to injury, most are under the impression that their plan is free. …

The aging of the U.S. baby boom generation may slow an already weak recovery as boomers sell stocks to pay for retirement, according to research released Monday from the San Francisco Federal Reserve Bank.

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.”

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

A Fidelity Investments survey released on July 28 found that a majority of Americans do not understand how their pensions work.

In case you have not noticed, there has been a flurry of regulatory activity surrounding defined contribution plans and DC advisers in particular. While there will be greater disclosure requirements, more advisers will be considered a fiduciary and it will be harder for advisers to represent a DC plan and the participants at the same time. Experienced DC advisers can use this activity to further distinguish themselves and grow their businesses.

The majority of employers want to prepare employees for a financially secure retirement, but have found educational campaigns unlikely to result in substantial changes in behavior. Employers walk a fine line when they implement automatic features; some argue that they enable lax saving habits and investment ignorance by funneling participants into plans automatically. On the other hand, Steve Utkus, director of Vanguard's Center for Retirement Research, recommends that employers use "participant inertia to their benefit and do it exclusively with plan design."

Lincoln Trust Company has introduced the Personalized Expense Ratio for the 401(k) plans that it administers. The ratio is designed for participants, plan sponsors and advisers to see the actual cost of their plans without having to perform calculations themselves.

When Americans think about retirement one of the main obligations they feel is the need to offer financial assistance to their adult children. More than 60% of respondents to a July 12 SunAmerica Financial Group survey expect that they will be helping their adult children as well as their spouse, grandchildren and siblings.

American workers lapsed into investing inertia after the market collapsed in 2008, but standing still actually benefited many and helped their workplace retirement plan balances rebound by 31% between 2007 and 2010, Vanguard said this week.

When individuals are faced with too many options they become paralyzed and don’t make the best decisions — even when it comes to 401(k) options, according to a new study co-authored by Columbia Business School and University of Chicago Booth School of Business.

Three out of four middle-income baby boomers say their financial situation, not age, is now the key trigger for when to retire, according to a recent study.to retire, according to a recent study.

While couples are saving for retirement, they don’t seem to be discussing their retirement goals, according to a new survey by Fidelity Investments.