They may have moved to the figurative back seat for a while, but retirement plan fiduciary issues did not stop during the Coronavirus pandemic. As you sift through what has happened in the last few months, you’ll want to pay close attention to fiduciary responsibilities with your 401(k) plan. Fallout…
Q: Our small company has, of course, suffered due to the Coronavirus. A few employees who had to take pay cuts are considering applying early for their Social Security benefits, rather than continuing to work at reduced pay. Where can we point them for information about this decision? A: SSA.gov…
In recent weeks, we’ve experienced some of the most impressive swings ever in the U.S. stock market. Naturally, this kind of rollercoaster ride causes participants concern. It’s more important than ever during times of volatility to remind them of the reasons to participate in their 401(k) plan, as well as…
Generally speaking, we don’t encourage being shifty. But applying a few innovative moves in your 401(k) plan could result in increased retirement savings for your employees. That’s because, when it comes to money, subconscious perceptions can torpedo a plan participant’s success. Applying behavioral finance principles may help employees overcome obstacles…
Q: We keep hearing about participant lawsuits against 401(k) plans, and strive to do our best to avoid situations that could lead to one. Part of that is using prudent processes in the plan. We have asked our advisor and done some searching on our own, but haven’t been able…
You can almost hear the retirement plan consultants ticking the boxes on their to-do lists: auto-enrollments? Check. Auto-increases? Check. With widespread implementation of these features firmly entrenched, the next focus may be retirement income options in 401(k) plans. That’s one of the findings from recent queries of 238 consulting and…
The assumption when plan sponsors began to include auto features in their 401(k) plans was that participation rates and deferral amounts would increase — but no one knew for sure. As time has passed, it appears the assumption was good: auto-enrollment and auto-increases have had very positive results overall. Plans…
How realistic are employees about the true state of their retirement savings? While many among the three primary generations that make up today’s workforce are feeling pretty good about the future, all three may be seeing things a little optimistically. Even if their vision is a little rosy, there are…
Q: In reviewing employment data at our company, we were surprised to find the average time our employees stay with us to be about 6 years. Considering that many employees who leave us take a lump sum distribution from their 401(k) accounts, it made us wonder what we can do…
Financial wellness is important for individuals and their employers, in part because of the role it may play in retirement. Individuals benefit when they are financially healthy, because it makes them more prepared to retire on time and with enough money. Companies benefit, too, because along with the potential for…
