rss.shrm.org | Stephen Miller, CEBS
Technological breakthroughs, red-tape-cutting legislation and new initiatives from service providers indicate big changes are ahead for 401(k) and other workplace defined contribution plans. These improvements are expected to provide larger nest eggs for employees’ retirement years.
There are ample reasons for plan sponsors to enhance their plans and drive up employee savings. For one, workers’ confidence in having enough money to live comfortably throughout retirement has dropped significantly, from 73 percent in 2022 to 64 percent this year, according to a January 2023 survey by the Washington, D.C.-based Employee Benefit Research Institute (EBRI). And 40 percent of workers reported that their retirement account balances had decreased from a year earlier, the survey showed.
“The current economic climate, in particular inflation, is eroding the confidence that Americans had in their retirement preparations,” says Craig Copeland, EBRI’s director of wealth benefits research.
Below are four monumental retirement plan changes employers that sponsor workplace plans should anticipate and prepare for, based on current trends and expert discussions. Knowing what’s likely to be around the corner can keep HR managers alert to opportunities for upgrading their benefits offerings.
Predicting specific future changes, however, is speculative, so it’s important to consult with benefits advisors and service providers to stay up-to-date on the latest developments. As…
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