Ted Godbout

What Employees Prefer in an Emergency Saving Solution

By Ted Godbout 9/12/2022

With the current economic environment exacerbating the financial situation of many workers, a new white paper shares insights on how emergency savings solutions designed for low-to-moderate income (LMI) workers can improve financial security and bolster retirement outcomes. And plan sponsors and... READ MORE

Businesses Prioritizing Wages, Benefits, While Cutting Other Expenses

By Ted Godbout 9/9/2022

Small and mid-sized U.S. businesses acknowledge concerns about inflation and the possibility of a recession, but they also want to avoid taking any action that would negatively impact employees, a new survey finds. Even as recessionary pressures rise and inflation persists, the latest Principal... READ MORE

Senate Finance Leaders Formally Introduce EARN Act

By Ted Godbout 9/9/2022

We now have legislative language for the Enhancing American Retirement Now (EARN) Act—and a quick review finds a change from the concept draft regarding catch-up contributions. In June, the Senate Finance Committee approved the EARN Act by a unanimous 28-0 vote, but the legislation at that point... READ MORE

Survey: Workers Would Save More for Retirement with Emergency Savings

By Ted Godbout 9/7/2022

With many workers unable to cover the cost of an emergency, a new survey finds that most would support legislation allowing them to tap into a small portion of the retirement savings account to cover the cost. AIG Life and Retirement’s survey of more than 1,200 American workers explored how:... READ MORE

DOL Updates Guidance on Employee Benefit Plan Auditor Independence

By Ted Godbout 9/2/2022

As expected, the Department of Labor (DOL) has just released updated guidance addressing the “independence” requirements for accountants auditing employee benefit plans. More specifically, Interpretive Bulletin 2022-01, released Sept. 2 by the DOL’s Employee Benefits Security Administration (EBSA... READ MORE

Parents’ Retirement Confidence Takes a Hit over Inflation Worries

By Ted Godbout 8/31/2022

The volatile economic environment is contributing to a grim outlook among parents, according to the results of a new flash poll that focuses on families’ financial viewpoints. Just half of U.S. parents feel confident they will be able to save enough for retirement or their children’s education... READ MORE

Worried About a Recession, Many Americans Taking Steps to Prepare

By Ted Godbout 8/31/2022

Amid high inflation and mixed economic signals, most U.S. adults admit they are worried about the possibility of a recession and are taking steps to prepare, including saving more for retirement, a new survey finds. In fact, nearly 7 in 10 (69%) U.S. adults admit that they are worried about the... READ MORE

Older Workers’ Retirement Expectations Remain Intact Despite COVID

By Ted Godbout 8/29/2022

The pandemic has affected older Americans’ work and financial situations to a large extent, but a new issue brief finds that the retirement expectations of these respondents appear to remain the same despite these impacts. In investigating the influence of the pandemic on participants’ working... READ MORE

How Employers Are Supporting Their Employees in a Post-Pandemic World

By Ted Godbout 8/29/2022

While many employers made difficult cost-cutting decisions during the pandemic, a new survey finds that most feel responsible for their employees and are addressing their needs through enhanced benefit offerings and business practices. The report from the Transamerica Institute and its... READ MORE

Actual and Expected Retirement Ages Continue to Rise

By Ted Godbout 8/22/2022

New polling by Gallup finds that American workers are retiring at later ages than those in the past three decades. In 1991, U.S. retirees, on average, reported that they retired at age 57, but now the average reported retirement age is up to 61. Meanwhile, non-retirees’ target retirement age has... READ MORE

Modest Deferral Rate Increases Could Have a Big Impact on Retirement Readiness

By Ted Godbout 8/19/2022

A modest increase in participant elective deferral rates would enable most plan participants to attain a 75% replacement rate in retirement, according to new research by Vanguard. To assess whether Vanguard DC plan participants are saving optimally in their current workplace retirement plan,... READ MORE

Retirement Savers Stay Focused on Long-Term, Despite 2Q Drop in Balances

By Ted Godbout 8/19/2022

Even though average account balances have decreased, given the stock market’s decline in the second quarter, there was also good news to be found in Fidelity’s Q2 2022 Retirement Analysis. The analysis, which is based on the savings behaviors and account balances for more than 35 million IRA, 401... READ MORE

Inflation Chipping Away at Workers’ Ability to Save for Retirement

By Ted Godbout 8/19/2022

Inflation is now the top obstacle to saving for a comfortable retirement, according to a new survey from Schwab Retirement Plan Services. The firm’s annual nationwide survey of 401(k) plan participants finds that workers rank inflation (45%) ahead of other obstacles, including keeping up with... READ MORE

Most Investors Unwilling to Curtail Retirement Contributions

By Ted Godbout 8/15/2022

While inflation is causing a significant amount of stress and anxiety, a new survey finds that most American investors remain committed to their long-term financial goals. In the past 12 months, rising inflation has caused the greatest proportion of investors (51%) to curtail discretionary... READ MORE

How Financial Wellness Can Enable Retirement Savings

By Ted Godbout 8/15/2022

Exploring the relationship between financial wellness and retirement savings reveals a profound relationship between the two, according to new research from T. Rowe Price. More specifically, the research found that financial stress is a predictor of financial wellness, and retirement plan... READ MORE

Most Remain Financially Confident, But Goals Are Shifting

By Ted Godbout 8/15/2022

Despite a decline in confidence, most Americans believe their finances remain relatively strong and they can still meet their long-term financial goals, according to findings from New York Life’s Wealth Watch Survey. Even as inflation remains elevated and the cost of everyday goods continues to... READ MORE

Limits on Wealthy Retirement Accounts Not in Inflation Reduction Act

By Ted Godbout 8/10/2022

While the Build Back Better legislation sought to impose limits on higher-income individuals with large retirement account balances, the newly passed Inflation Reduction Act does not contain those provisions, targeting corporate taxes instead. Following a marathon weekend session, the Senate... READ MORE

‘Journey-based’ Web Designs Paying Off for Providers

By Ted Godbout 8/10/2022

Retirement plan providers are increasing their efforts to encourage saving by redesigning online participant experiences with simplicity and personalization in mind, according to a new report from Cerulli. In fact, plan providers are making sizable investments in digital technology to enhance... READ MORE

Hot July Brought Cool 401(k) Traders

By Ted Godbout 8/10/2022

Amid the dog days of summer, 401(k) plan investors were light traders in July, according to the Alight 401(k) Index. In fact, there were no above-normal trading days, as Wall Street posted its best month since November 2020, the firm notes in its July 2022 Observations. In comparison, the month... READ MORE

Inflation Chipping Away at Workers’ Ability to Save for Retirement

By Ted Godbout 8/5/2022

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