After two years of cutbacks, 2011 will be a year of rebuilding company-sponsored 401(k) plans—for both employers and employees. But the result could be more flexible, more customized retirement savings plans.
Here is a roundup of recent research regarding your employees and their retirement savings plans.
Later retirements looming
Employees relying on 401(k)s to fund their golden years might be working longer than they once expected. Actuarial and employee-benefit consultants at Nyhart say many won’t be able to retire until age 73.
Other findings from the organization’s Fall 2010 401(k) Retirement Readiness Study:
- 81% of employees 18 or older will not be able to afford to retire by age 65.
- The average 55-year-old employee needs to contribute more than 45% of his or her pay for the next 10 years to build assets sufficient to retire at age 65.
- Unless they increase their 401(k) contributions, most 60- to 64-year-old employees ...(register to read more)