Discouraged with the state of the current economy, more and more younger workers are abandoning saving for retirement and focusing on ‘soft saving.’ Soft saving is when employees, many of whom started their careers later than previous generations, decide to take a more laid-back approach to saving for the future, rather than adopt the FIRE concept — […]
Just 14 per cent of near-retirees say they can retire with confidence and only five per cent say they’ve sought financial advice from their employer, according to a new survey by Deloitte. A third (31 per cent) of near-retirees said they’ll need to rely on the Canada Pension Plan or Quebec Pension Plan to sustain their […]
When Desjardins Insurance launched a study to redefine employee health and well-being, an unexpected finding came through loud and clear: Canadian employers and insurers should be paying much closer attention to millennial plan members. Millennials are a cohort of people born between 1980 and 1996. Since 2016, the generation has comprised the largest segment of […]
The average U.S. 401(k) balance decreased to $107,700 in the third quarter of 2023, down four per cent from Q2, but up by 11 per cent from a year ago, according to a new report by Fidelity Investments. Reflecting a combination of employee and employer 401(k) contributions, the total savings rate for the third quarter […]
While one expert says replacement rates vary with income and age, another argues the longstanding 70 per cent benchmark doesn’t actually work. Bonnie-Jeanne MacDonald, director of financial security research for the National Institute on Ageing at Toronto Metropolitan University Retirement financial security has become critically important with population ageing — now, more than ever, is […]
While the term decumulation may sound very technical and often leads to confusion among pension plan members, it’s actually quite simple — effectively, it’s the opposite of accumulation. These two terms make up the typical retirement savings journey — the accumulation phase is the working years when capital accumulation plan members put away their nest […]
More than half (57 per cent) of U.S. women say they don’t earn enough to save for retirement and 26 per cent say they agree strongly with this statement, according to a new survey by the Transamerica Institute. The survey, which polled more than 5,600 employees, found while a similar percentage (50 per cent) of […]
While more than three-quarters (79 per cent) of U.S. employees say they’re satisfied with their employer-sponsored pension plan, 76 per cent say they’re concerned about their capacity to save for retirement due to economic volatility, according to a new survey by Arthur J. Gallagher & Co. The survey, which polled more than 300 employees and […]
Defined contribution pension plan members are currently in a different place, especially the younger generations, who are likely feeling as though their financial priorities don’t line up with workplace pensions the way they did for previous generations. “What I’m getting at here is the idea that retirement saving isn’t the undeniable consensus top priority it […]
Plotting out a glide path is the most important part of designing a target-date fund — not only does it take members on a roughly 40-year investing journey, but it also has the most significant impact on their retirement outcomes. Glide paths must also address the key risks facing defined contribution plan members, said Satwick […]