Navigating the cost of delayed retirement
An in-depth analysis reveals the financial cost and workforce challenges when employees aren’t financially able to retire when they want—and ways plan design can help.
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Traditional retirement benchmarks often don’t reflect employees’ different needs and priorities as they approach retirement. This article explores how individual-targeted outcomes can personalize retirement goals and how a managed account service may help support progress toward them.
Many employees are working longer than planned, often because they don’t feel financially ready to retire. This is creating challenges for both individuals and employers. Explore common employer questions about the cost of delayed retirement and ways plan design can help support employees’ retirement readiness.
Plan sponsors face a pivotal shift in retirement plan needs. Discover the possible solutions for in-plan retirement income. Learn how they can help transform traditional retirement savings plans to support participants’ long-term financial security.
Here we look beyond the retirement plan budget to uncover broader funding strategies. Delaying automated features may cost participants potential savings. From rethinking total rewards to leveraging tax incentives, organizations can find ways to implement these plan features without significantly increasing overall costs.
Some plan sponsors are concerned that adding automated features could come with additional organization costs. But waiting may cost participants more in potential savings. It’s possible to support these features strategically within the plan’s existing funding structure without compromising the balance sheet.
When interpreting retirement plan data and statistics, a simple guideline is to flip the numbers to see the full story. This simple test can help employers and financial professionals better understand if plan design changes might be needed.
Data shows that automated features such as automatic (auto) enrollment, auto-increase, and re-enrollment can significantly improve participation rates and help employees save for retirement.
Pension plans are reaching their strongest funded levels in decades, creating a rare opportunity for sponsors to lock in gains by more precisely aligning assets with liabilities. By incorporating strategies such as key rate duration, STRIPS, and interest rate swaps, plans may better protect funded status from future market volatility.
Strong markets and higher discount rates have typically improved pension funding levels. This can create opportunities for sponsors to protect gains, manage costs, enhance data accuracy, and prepare for long-term strategies like risk transfer and surplus asset management.
In today’s uncertain market environment, many plan sponsors are asking the same questions about risk, timing, and long-term strategy for their defined benefit (DB) plans. Get clear and practical insights to five of the top questions to help navigate key decisions with greater confidence.
Check out these helpful resources and materials below. Still have questions? Reach out to your local Principal® representative or support team.