What Plan Sponsors Should Know About Lifetime Income Solutions

What Plan Sponsors Should Know About Lifetime Income Solutions

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The number of U.S. workers who are covered by a defined benefit pension plan dropped by nearly half between 1980 and 2008, from 38 to 20 percent, and continues to steadily decline. More employers have adopted a defined contribution plan, which shifts the responsibility of saving and making investment decisions to their employees. However, many participants underestimate how much they should have in retirement and can deplete their resources much sooner than planned. Thus, in the absence of a pension plan, the need for retirement lifetime income solutions is evident. What should plan sponsors know about adopting and implementing lifetime income solutions in their plan?

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Why You Should Hire a 3(38) Fiduciary

Why You Should Hire a 3(38) Fiduciary

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For many plan sponsors, designating an ERISA 3(38) investment manager to manage, select, and monitor the retirement plan’s investments can be beneficial. It allows the plan sponsor to have more time and attention to focus on other aspects of the organization along with managing tasks that are otherwise difficult to outsource. There are many benefits if you decide to hire a 3(38) fiduciary, but it’s important to understand the advantages (and disadvantages) of their role and the questions you should ask when vetting an investment advisor/manager to take on the role for your retirement plan.

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Millennials in Retirement Plans

Encouraging Millennials to Participate in Retirement Plans

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In 2016, millennials became the largest generation in the U.S. labor force with an estimated 56 million workers. Born between 1981 and 1996, millennials now account for more than one out of every three working Americans. Despite its size, this generation is often overlooked by plan sponsors due to their focus on the needs of those participants nearing retirement. Without retirement plans tailored to meet their own barriers, millennial workers struggle to save adequately for retirement. While an obvious roadblock may be lingering student debt, millennial would-be savers face several additional unique obstacles. This multifaceted struggle presents plan sponsors with both a challenge and an opportunity. To attract and retain the largest age group of U.S. workers, employers need to consider the unique needs of this generation in a retirement plan context. Read on to learn how to encourage millennials to participate in your retirement plan.

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Active vs Passive Investing: A Hotly Contested Debate

Active vs Passive Investing: A Hotly Contested Debate

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There is no single, preset approach to designing an investment menu for defined contribution retirement plans. Accordingly, there are a plethora of highly contested ideas and theories around menu construction and how to maximize the value to participants through the plan’s investment offerings. One of the most prominent, and often most polarizing, menu design considerations is the superiority of active or passive management for plan investments. With a fundamental understanding of how active vs passive investing approaches work, as well as the pros and cons of each, plan sponsors can make more informed decisions in their menu construction.

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The American Student Loan Crisis – Plan Sponsor Solutions

The American Student Loan Crisis – Plan Sponsor Solutions

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At the end of each spring semester, millions of college graduates in the United States celebrate their college diploma in return for their hard work. With the hopes that their degree will bring a successful career, these graduates enter the workforce, often bringing with them tens of thousands of dollars in student loan debt. With 44.7 million Americans currently carrying an estimated $1.5 trillion in student debt, this financial burden will remain with many for decades. And as these graduates become part of the employee population of many companies, employers are now exploring their role on how they can assist with tackling this debt.

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