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...“Bridging the spending and savings gap that exists today [is] the next frontier for 401k design.”...
...The typical Gen X household has just $40,000 saved for retirement, and 40 per cent of their 401k plan balances are zero....
...The BlackRock chief also warned that the rise of defined contribution pension plans had combined with the growing strain on the social security government retirement programme to leave the US particularly...
...A reader suggested another bit of hard data: hardship withdrawals from 401k retirement accounts....
...Yvonne Braun, director of long-term savings at the Association of British Insurers, welcomed the plans to compare the performance of pension providers....
...Unifying a person’s multiple schemes in a sensible reform of UK pensions offers the best chance of tackling the retirement under-saving crisis. The author is a partner at pension consultants LCP....
...The rise of defined contribution pension plans combined with the growing strain on the social security government retirement programme had left the US particularly unprepared for a huge increase in the retiree...
...Furthermore, mutual funds remain the top vehicle for US workers who are saving for future retirement....
...But there are reasons to doubt it, from shifts in the balance of savings and investment to higher levels of government debt....
...Hunt also announced that the government would also launch a new “British savings bond”, offered through National Savings & Investment....
...or even hundreds of billions in fiscal savings....
...For many clients, he says, the interest earned from an investment in an individual savings account (Isa) will be greater than the saving the same money would generate if deployed to pay down a mortgage....
...These are part of chancellor Jeremy Hunt’s efforts to stimulate the economy by unlocking billions of pounds of retirement savings to invest domestically....
...The remaining 75 per cent of the pot can then be moved to a drawdown plan, used to buy an annuity or taken as cash....
...In some senses, this is true: 61 per cent of the population currently owns equities, often via 401K retirement plans. And awareness of the markets is arguably greater than in countries such as the UK....
...Some pension providers were euphoric about the end to the lifetime allowance, perhaps anticipating the “fill your boots” impact on pensions savings among the wealthy....
...However, many plan to increase their pension contributions to avoid the “£100,000 tax trap” of high marginal rates and the loss of childcare benefits....
...Instead, the employer chooses a retirement plan on behalf of the workforce....
...In his Budget, Hunt confirmed new measures that require local authority pension funds and private sector retirement plans to disclose their UK investments....
...“Auto-enrolment in particular has resulted in millions more saving for retirement, but it’s falling short of what people need in retirement,” said Mubin Haq, chief executive of the Abrdn Financial Fairness...
...system by raising the retirement age....
...Final approval of the bill by the Senate would maintain individual accounts, while adding a redistribution component, he noted, leading to a “significant increase of national saving capacity”....
...The £33bn PPF was established in 2005 to rescue defined benefit pension plans in the event of the sponsoring employer collapsing and to ensure members continue to receive retirement benefits....
...The Pensions and Lifetime Savings Association (PLSA), which represents the workplace pension funds, said the industry was “happy” to provide a high-level overview of scheme investments — including whether...
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