Of the $240,000 needed to cover a retired couple's health care expenses, Fidelity estimates 32 percent will go toward paying Medicare Part B and Part D premiums; 45 percent will be consumed by expenses not covered by Medicare; and 23 percent will be spent on out-of-pocket prescription drug expenses.
Before a plan can be terminated, it needs to have all the funds necessary to pay benefits to employees. Once that happens, plan sponsors can start the process of shutting down the plan.Read More
Even with employer matches, automatically enrolled workers' annual savings doesn't hit the recommended minimum 10 percent of pay.Read More
The case is significant because new federal rules that go into effect this summer will require 401(k) plan service providers—such as record keepers and investment managers—to report detailed fee information to plan sponsors.Read More
Plan sponsors need provider fee information so they can give participants data on fees. This regulation comes in two waves: the first requiring plan sponsors to give participants plan and investment information due Aug. 30, and the second delivering quarterly information on fees and services to participants' individual accounts, due Nov. 14.Read More
At a House hearing, neither Dems nor Republicans seemed eager to tinker with main selling point of 401(k)s and IRAs.Read More
After seeing parents struggle through the Great Recession, a survey reveals that for many younger workers, financial security later in life is growing more important.Read More
The plans offer a core lineup of 12 options, in addition to the target-date series and a self-directed brokerage window to accommodate participants who want greater access to mutual funds, exchange-traded funds and stocks.Read More
'What we need to do is provide options so that, case by case—employer and employee—they have choices. … And I think that, actually, is an important part of the future,' Joshua Gotbaum told the National Press Club on April 3.
Among the employees who reported pulling money out of their retirement savings, two-thirds indicated they needed the cash for an emergency, debt or day-to-day living expenses.Read More