PCS Retirement’s Post

Reduced Social Security benefits put more pressure on 401(k)s and personal savings to meet financial needs during retirement. How to improve outcomes: - Automatic enrollment (utilizing a meaningful default rate of 6%+) - Automatic escalation (increase 1% a year and cap it at 10%-15%) - Financial Wellness - Social Security Optimization - Gap analysis tools - Participant engagement with advisor - Catch up contributions https://lnkd.in/g4C9Wy9T

Balancing immediate needs and long-term financial security can be tough for American workers – people want to do the right thing and understand they should be saving for retirement. Workplace retirement benefits can help, but not everyone takes advantage of them. That’s why Principal Financial Group dug into why some employees – specifically those who are eligible for their 401(k) – are not contributing. The results showed this group of workers want to be saving, but barriers exist for them – nearly 60% thought they were contributing, when in reality they were not! By highlighting the value of participating in retirement plans and showing how investing today can help set them up for future success, we can work with plan sponsors to make a real difference. For example, features like automatic enrollment, auto increase, and auto re-enrollment or sweep, as well as regular engagement and communication with employees, have significantly boosted savings and engagement. Together, we can help employees feel more confident about their financial futures. #RetirementPlanning #EmployeeBenefits #FinancialWellness https://lnkd.in/eubGXNAy

A really good study and article on the level of financial savvy by age in the US workforce. Companies identifying education and addressing longevity risk by adding in-plan annuity options will better serve their employees in the long run. "Respondents who reported working directly with a financial adviser also tended to have higher scores across all knowledge areas and feel more confident about retirement." Unum offers both multi-tiered financial education and resources and is about to launch in-plan annuity options to its 401k lineup. #financialliteracy #financialwellbeing https://lnkd.in/eEnN9vSx

Unum's own Carl Gagnon highlighted an essential read on financial literacy in the US workforce, emphasizing the value of education and in-plan annuity options for tackling longevity risk. The article notes that employees who consult with financial advisers score higher in financial knowledge and feel more prepared for retirement. At Unum, we’re taking steps by offering extensive financial education and soon, adding in-plan annuity options to our 401k plans. #financialliteracy #financialwellbeing #employerofchoice

Read our latest blog post to learn how the Department of Labor has redefined a fiduciary under the 2024 Retirement Security Rule. https://lnkd.in/eNrPQDnx #compliance #fiduciary #assetmanagement #disclosuremanagement

Read why Fred Barstein believes the age of the dabbler is giving way to a more dynamic and adaptive retirement plan advisory landscape, where success hinges on embracing training, leveraging resources, and navigating the evolving retirement plan industry landscape effectively here: https://lnkd.in/eynubG29 #change #401k #financialadvisors #wealthmanagers

Of Counsel Michelle Capezza spoke with Forbes on the Department of Labor’s new fiduciary rule and its potential impact on financial advisors and retirement investors. Michelle commented, “Advisor fees for those newly coming under the parameters of the rule will likely increase to address the heightened fiduciary liability considerations and litigation risks, and access to their services and products for retirement investors may decrease. While employees with access to robust workplace retirement plans might not see a drastic change in available services where their employers engage large financial institutions that have already taken on fiduciary responsibility in certain contexts to serve the plan and the participants, workers in small plans or IRA investors might find it harder to obtain financial advisors or industry professionals willing to provide any retirement related advice and take on the increased liability.” https://bit.ly/4bls0Gp

Seems like this should be outdated in this day and age, but barely half of American households have retirement accounts. (2022). Find a business partner & built #trust, have a conversation; relief happens when you lose the stress & confusion around saving, or planning how to do it. Where does your plan rank when it comes to this topic? How can my team and I help you? #financialplanning #security

A Your Money Survey conducted by CNBC reveals that 46% of 401(k) investors are clueless about their investments, mainly due to automatic enrollment. Furthermore, 87% of 401(k) plans default to Target Date Funds for simplified investment management.   While this approach is beneficial and will work to boost your participants' total contributions, it's important for participants to also understand their retirement investment decisions. As a fiduciary, your role doesn’t end when participants sign up for the plan. Fiduciaries should also make sure participants are getting the guidance they need to get on track.   With our Participant Management Services, our client’s participants have unlimited access to PCI’s RetireAdvisers℠ experts. They provide our client’s employees with direct 1:1 Guidance, focused on the key decisions every participant will need to make along their retirement journey. https://lnkd.in/eu7WiMDU

Ensuring compliance with the strict standards of fiduciary conduct outlined in the Employee Retirement Income Security Act (ERISA) has typically focused on retirement plan sponsors. However, a recent class action lawsuit underscores the critical need for employers to uphold their fiduciary responsibilities when overseeing group health plans. Need assistance navigating these obligations? Contact us to learn how we can help. #employeebenefits #smallbusinesses