Nearly every week a report or study provides new insight on retirement planning. The flow of information is not surprising, given the poor level of retirement readiness by many Americans. Yet, as a plan sponsor, what should you read? And how do you put it all in perspective and find the key nuggets of information?
This month we have combed numerous articles, guides, reports, and white papers from various trusted sources, plus I found a handy guide put out by the DOL and Certified Financial Planner Board of Standards Inc. From this, I have hit on the highlights and offered my insights on the findings.
Joint Planning Improves Retirement Readiness and Happiness – Money issues are no fun for most couples. Mix in worries about retirement readiness, and the stress level goes up even more. A study by Fidelity Investments found that nearly half of couples surveyed could not agree on how much they needed for retirement. The report shares more troubling findings, along with some interesting facts and suggestions on how we can help improve a couple’s financial communication.
“Buying” Retirement – We love the DOL and CRP Board’s approach to getting retirement plan participants to purchase retirement in their Savings Fitness guide. Rather than thinking about saving, which might seem like a nice-to-have, they encourage people to put retirement contributions on a monthly spending budget along with other financial obligations. This slight shift in thinking could be helpful. The guide contains other useful strategies and includes worksheets for goal setting, budgeting, and more.
Women Lag in Retirement Readiness – Over half of the workforce now consists of women, yet this gender is woefully behind men in preparing for retirement. Today, women age 65 or older are 60 percent more likely than men the same age to have an income below the poverty level, according to the DOL. Lower pay, interruptions in work, and other factors all contribute to these poor results.
As you read through our blogs and perhaps check out some of these reports for yourself, we would like to hear your thoughts and questions on the topics. An ongoing dialog is helpful when tackling retirement planning. We would love to hear from you via email or our website. Happy reading!
