Participant Insights: Misperceptions About 401(k) Plans Abound Two of the most prevalent misunderstandings that keep workers from signing up that it is too complicated, and that retirement is too far off to care can be stamped out through automatic features, advisers say.
Retirement plan sponsors have to conquer a great number of fiduciary and plan design basics when setting up a plan, but they might not think about the many misconceptions that participants have about retirement plans and retirement saving which could be an impediment.
Two of the biggest misconceptions that keep workers from participating in retirement plans are that they are too complicated and that the worker is too young to care about a milestone decades down the road.
Secure Act Boosts Interest in Guaranteed Lifetime Income Among Plan Sponsors
Plan sponsors increasingly want their retirement plans to provide guaranteed lifetime income but are still unfamiliar with SECURE Act provisions that create opportunities for solutions, TIAA Retirement Insights Survey shows.
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NEW YORK, May 25, 2021 /PRNewswire/ Nearly half (45 percent) of all plan sponsors, and 55 percent of 403b providers (55 percent), say the passage of the Setting Every Community Up for Retirement Enhancement (SECURE) Act of 2019 increased their interest in offering in-plan guaranteed lifetime income options, but there is an opportunity to educate plan sponsors on the legislation, as just half say they are familiar with the legislation, according to the recent TIAA Retirement Insights Survey.
There's ample reason for employers to consider helping employees minimize their student loan burden and emerging opportunities for employers to do just that.
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