Those who participate in a defined contribution plan have much better retirement preparation odds
Contrary to some reports that working just a little bit longer—to age 70—will allow between 80 percent and 90 percent of households to have adequate income in retirement, new research by the nonprofit Employee Benefit Research Institute (EBRI) shows that for approximately one-third of U.S. households between the ages of 30 and 59, that won’t be enough.
In case you missed it, here’s what happened on We Know Next this week.
New research pinpoints personality traits successful leaders must emphasize and de-emphasize as they progress in their careers. Specifically, the PDI Ninth House Pulse on Leaders survey research found that certain traits that facilitate advancement to the business unit leader level actually inhibit progression to the CEO level.
Americans are less confident now than just three years ago that they will have enough financial resources to last through their retirement years, according to a Pew Research Center survey on retirement planning conducted in the latter half of 2012.
It’s no surprise that, as a nation, we’re getting older. What is surprising is how quickly. The U.S. National Institute on Aging, says the population of people between ages 75-85 is 17 million. They predict that number will be 30 million by 2050.
Contrast those numbers with the UN estimates that the percentage of children will drop. Today, half of Latin America is under fifteen years old. By 2050, half will be over 40 years old.
So the trend is fewer kids and more old people.
Six in 10 U.S. employers that provide retiree health care coverage are considering alternative strategies for delivering this benefit in light of market changes under the Patient Protection and Affordable Care Act (PPACA), according to newly released findings from a 2012 survey by HR consultancy Aon Hewitt.
Of those employers planning changes to their coverage, 63 percent are implementing or considering subsidized coverage through the individual market.
Health Care Reform's Impact
Contrary to some reports that working just a little bit longer—to age 70—will allow between 80 percent and 90 percent of households to have adequate income in retirement, new research by the nonprofit Employee Benefit Research Institute (EBRI) shows that for approximately one-third of U.S. households between the ages of 30 and 59, that won’t be enough.
Social media can be a valuable tool for organizations looking to recruit military veterans who are transitioning to the civilian world, according to Lisa Rosser, a military recruiting expert.
Rosser, founder of The Value of a Veteran in Herndon, Va., has 25 years of military experience—10 of those on active duty—and 14 years in staffing and consulting.
She and Neil Costa, of Boston-based digital recruitment marketing agency HireClix, were presenters during an Aug. 9, 2012 webinar, “Recruiting Veterans Through Social Media.”
In case you missed it, here’s what happened on We Know Next this week.
The current Employment Eligibility Verification Form, commonly referred to as Form I-9, expires Aug. 31, 2012. Once it expires, what should employers do? All U.S. employers must complete and retain a Form I-9 for all citizens and noncitizens they hire for employment in the United States, according to the U.S. Citizenship and Immigration Services (USCIS).
Analysis of Generation Y participants—born between 1979 and 1991—in defined contribution plans revealed stronger selection of target-date funds and Roth 401(k) options compared to other age groups, according to data from Fidelity Investments, a large retirement plan services provider.
In the second quarter of 2012, Fidelity analyzed its approximately 11.9 million 401(k) accounts, including 2.2 million Generation Y participants. Among the findings, members of Generation Y were more likely than older participants to:
The two-year omnibus highway transportation bill (H.R. 4348), passed by Congress on June 29, 2012, and signed into law by President Barack Obama on July 6, includes long-sought funding relief for employer-provided defined benefit pension plans. The measure, known as the Moving Ahead for Progress in the 21st Century Act (MAP–21), also raises the premiums that plans pay to the federal Pension Benefit Guaranty Corp. (PBGC).
Shaken by the realities of the Great Recession, American workers have adjusted their visions of retirement, according to the 13th Annual Transamerica Retirement Survey released in May 2012 by the nonprofit Transamerica Center for Retirement Studies. And most said they would switch jobs for a better retirement plan.
In case you missed it, here’s what happened on We Know Next this week.
The U.S. Department of Labor’s (DOL) wage and hour enforcement under the Obama administration has become markedly more hostile toward employers, according to Paul DeCamp, former administrator of the Wage and Hour Division under President George W. Bush and an attorney at Jackson Lewis’ Washington, D.C., regional office.
Employers and their employees in the U.S. hold different perspectives on how to achieve retirement preparedness through 401(k) plans, according to the results of two newly released studies from Schwab Retirement Plan Services. The studies indicate that, despite efforts by employers to educate workers on the 401(k) offering, most workers remain disengaged and unprepared financially for retirement.
Unengaged Participants
The percentage of America’s young workers who say that a retirement program is an important factor in joining or staying with an employer jumped sharply in the past two years, according to a survey by consultancy Towers Watson. This was especially true when the employer offered a defined benefit pension plan.
The firm's Retirement Attitudes Survey, conducted in June and July 2011, includes responses from 9,218 full-time U.S. employees at nongovernment organizations with 1,000 or more employees. The survey found that:
Despite improvements in the U.S. economy, the hangover effect from the 2008-09 recession and slow economic growth continue to erode employees’ retirement confidence and overall financial wellness, according to the PricewaterhouseCoopers 2012 Financial Wellness Survey.
Employees’ financial stress remains high: Overall, 61 percent of employees find dealing with their financial situation stressful, and more than half (56 percent) reported that their stress level related to financial issues had increased over the past 12 months.
The writing’s been on the wall for a number of years, but only now are people starting to read it: Corporate America must reinvest in its workforce and come up with creative ways to retain that massive amount of knowledge that will walk out the door as millions of Baby Boomers retire.
In case you missed it, here’s what happened on We Know Next this week.
