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...Adviser Joe DeNoyior believes the promise of a guaranteed income for life can be a game-changer for employees investing in 401(k) retirement accounts....
...It now makes the bulk of its money running 401(k) retirement plans and other employee benefits offerings. These services generate steady fees from captive assets....
...Participants in 401(k) DC plans are “generally well protected”, Ms Wagner says....
...At the end of 2013, the median 401(k) plan held by US households near retirement had a balance of $104,000, according to the National Institute on Retirement Security....
...And third, can we benchmark their performance? On costs, the news is good. US regulations require 401(k) sponsors to look at costs, and the response has been to drive down fees....
...High-priced annuities in 401(k) defined contribution plans will also be hard to justify, says Paul Moffat, president of Las Vegas-based Arista Wealth Management....
...401(k) schemes, now the bread and butter of many US retirement plans....
...Beyond those with small 401(k) or individual retirement account (IRA) balances are people with no formal savings, says Kristen Deevy, vice-president for retirement plans at CoBiz Financial....
...In the US in the early 1990s I watched as pension providers offered dozens of different options within their “401(k)” pension plans, in what were known as fund supermarkets....
...“These are participants that have experienced a lot of market volatility over the past decade, and so we think stable value will be a core component for 401(k) plans,” Mr Wilson says....
...In the US, 401(k) plans now largely offer only a few choices, most of them expressed as “target dates”. They steadily cut stocks and increase bonds as you approach your targeted retirement year....
...If enacted, the so-called “401(k) cap” would affect one in 10 retirement savers before they hit age 65....
...Employers have seen participation rates rise with the increasing adoption of automatic enrolment in 401(k) plans, but they have also seen costs go up....
...This burst of rosy news arrives at a time when US DB schemes are largely closed to new members as companies shift the burden of pension planning to employees by offering 401(k) plans – which are roughly...
...Registered funds have a big advantage of fitting nicely into 401(k), annuity, individual retirement accounts and other retirement plans, where private and non-regulated funds would have a hard time finding...
...Intentions don’t get you to the finish line.” In the past decade, the 401(k) industry responded with automatic enrolment and escalation....
...The latest Plan Sponsor Council of America annual survey found that 46 per cent of 401(k) plans offered auto-enrolment in 2011....
...The looming fiscal cliff and budgetary restraints have meant there are a growing number of politicians who question the need for the current tax deductions on 401(k) and individual retirement accounts....
...By 2025, ETF industry assets could reach $9.2tn if serious traction can be established in US 401(k) retirement plans....
...Finally, we must pay as much attention to the distribution phase of retirement planning as to the accumulation phase, especially now that the baby boomers, the first generation to use 401(k)s and IRAs, are...
...This would generate not only more tax revenue, but give people longer to contribute to other retirement saving, such as employer-sponsored 401(k) plans....
...The idea of a European 401(k)-style defined contribution pension was put forward earlier this year by Efama, the European Fund and Asset Management Association....
...Steep losses in retirement plans that resulted from the financial crisis stirred debate over the adequacy of 401(k) plans to fund employees’ retirement....
...Specifically, how to increase financial security in retirement and the role of annuities within 401(k) plans has been on the administration’s agenda....
...Through 401(k) plans, workers in the US can save a portion of their salaries while deferring income taxes until they withdraw the money in retirement....
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