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According to a recent release, the Portability Services Network (PSN) has now grown to include six providers, covering over 15,000 retirement plans and 5 million members. For employees with balances under $7,000, PSN, led by Robert L. Johnson's Retirement Clearinghouse LLC, allows the automated transfer of retirement funds. The goal of this approach is to decrease the number of cash-outs and keep investors from losing sight of their retirement assets.
Employees can easily latch onto media-hyped, generalized one-size-fits-all retirement savings numbers without a clear understanding of whether those figures align with their personal financial circumstances. So what is retirement savings planning not?
Housing? Check. Life insurance? Check. Dining out? Check. For most retirees, these types of line items are fairly predictable and factored into their monthly budget. But when it comes to health care, the situation can change dramatically. These expenses are often unpredictable and underestimated — and this wild card can disrupt an otherwise carefully planned retirement, leaving many seniors vulnerable.
A recent study commissioned by the ALI Retirement Income Institute has revealed a stark reality: A substantial portion of America’s Baby Boomer population is ill-prepared for retirement. As the retirement countdown begins for Peak Boomers, plan sponsors have an opportunity to implement impactful strategies that can help increase the financial security of employees entering their golden years.
Americans are increasingly getting financial and retirement planning guidance from social media, risking exposure to misinformation, harmful advice and outright scams. Alarmingly, this includes almost eight in 10 millennials and Gen Zers. Workers turning to these platforms can undercut the benefit of employer-sponsored financial wellness initiatives and put themselves at risk. But there are ways to help ensure sound advice prevails.
According to a December 2023 survey from Schroder’s, nearly half of non-retired Gen Xers, those born between 1965 and 1980, have not done any retirement planning whatsoever. So how can employers help their "Sandwich Generation" workers consider planning for retirement?