A digest of timely information and insight about finance, investing and retirement.
Something Very Significant Just Happened to 401(k) Plans | Time
Withdrawals from 401(k) plans are now exceeding contributions, according to data cited by the Wall Street Journal. While baby boomers are retiring, younger workers are incapable or less interested in saving for retirement.
Most Americans unaware of 401(k) fees | BenefitsPro
Research from the National Association of Retirement Plan Participants shows that 58 percent of working Americans don’t realize they are paying fees for workplace retirement savings plans. Of those who do know, most don’t know how much the fees cost.
Many Americans have no retirement savings: Federal Reserve study | The Economic Times
Nearly a third of working Americans have neither a pension nor retirement savings, according to the 2014 Survey of Household Economics and Decision-Making, published by the Federal Reserve.
Americans Prioritize Short-Term Finances Over Distant Needs | PlanSponsor
Americans at all ages and income levels are shortsighted about their finances, according to a study from the Center for Retirement Research at Boston College. Even the wealthiest Americans favor short-term measures of financial fitness over longer-term measures. Findings suggest that retirement savings should be easy and automatic.
Can 401(k) Plans Be Improved? | The Atlantic
Americans often don’t save enough in their 401(k) plans and use the money that they do save too early, setting themselves up for financial failure. Low-income workers who may dip into 401(k) savings out of need are particularly at risk, exacerbating inequality, according to a study from the National Council on Public Employee Retirement Systems (NCPERS). Other countries have far less lenient defined-contribution rules.