Good news! More people are expressing confidence in their ability to meet their income goals during retirement. According to the Employee Benefit Research Institute’s (EBRI) Retirement Confidence Survey, 28 percent of people with a retirement plan are very confident they will be able to retire comfortably. Continue reading “Is the Retirement Savings Gap Closing?”
Cat stories are hard to resist – as evidenced by the media attention last week on the 911 call about an Oregon house cat who attacked a baby, then trapped the family (including the dog) in their bedroom. Mr. Mittens isn’t that ferocious cat, but he does have a “tail” to tell about retirement so take a minute and check out his story, sponsored by the International Foundation of Employee Benefit Plans (IFEBP): Continue reading “A “Tail” of Two Kitties”
Would the government want to encourage workers to save LESS? A recent proposal by the deficit reduction committee calls for a reduction to the total combined annual limitations for both the employer and employee to retirement savings plans. Called the 20/20 Cap Proposal, the committee suggested a cap of the lesser of 20% of an employee’s compensation or $20,000 in annual total employer and employee retirement plan contributions. Although this sounds higher than the current 2012 deferral limit of $17,000 that employees are restricted to now, the 20/20 Cap Proposal will also include employer contributions that now has a $50,000 or 100% of income limitation for 2012. This combined limit of only $20,000 will severely limit the tax benefits of business owners to sponsor a retirement plan. According to the American Benefits Council, “ When a typical small business owner evaluates the significant legal responsibilities, risks, and costs of voluntarily sponsoring a retirement plan, it is often the promise of meaningful tax benefits for key employees that is the deciding factor in choosing to establish and maintain a retirement plan. But if tax benefits to decision-makers are substantially diminished, businesses that would have considered plan sponsorship may no longer do so, and existing plan sponsors might reduce employer matching contributions or stop offering retirement plans altogether. All employees would suffer because employer sponsorship offers considerable advantages for workers, including strict fiduciary standards; participation rules that ensure that benefits are delivered across all income groups; easy payroll reduction; lower fees from group participation; access to financial education; and often significant employer contributions.” Continue reading “A Vision of Retirement Under the 20/20 Proposal”
The resident financial planners at Financial Finesse handle a variety of difficult questions from employees representing many different walks of life and unique backgrounds. One common area of concern these days is retirement. In fact, nearly 31% of all employees indicate that retirement is their number one financial planning priority. A recent helpline caller represented a perfect example of how a seemingly complex retirement planning scenario can be simplified using some quick and easy to use retirement planning tools. Continue reading “Does Calculating Your Retirement Needs Even Matter?”
