Retirement

With a new Congress and a new president in Washington, how are U.S. retirement policies likely to change? Possibly quite radically, and for two main reasons: First, because of the new majority’s plans to overhaul the entire U.S. tax structure and federal budget in ways that could fundamentally change how private-sector retirement plans are treated in the tax code. And second, because of the drive to simplify and lower income tax rates, tax-favored retirement provisions in the tax code are vulnerable. This article summarizes discussion of these issues at EBRI’s 79th policy forum in Washington last December. Press release. EBRI Notes Feb. 27, 2017 8 pages

Most discussion about retirement preparation revolves around national averages, but a lot could actually depend on where you live in retirement. A new study by EBRI finds large variations in spending by older households across the country. Press release.

 

EBRI Notes Feb 21, 2017 12 pages

Which groups of people prefer immediate annuities? A new analysis by EBRI finds that it’s those at the lowest and highest ends of the wealth spectrum, because those with inadequate assets might value a regular stream of income very highly and those with the most might expect to live longer and can also afford it even after leaving a bequest. EBRI Issue Brief Feb 8, 2017 20 pages

Most owners of individual retirement accounts (IRAs) do not contribute to them every year—but more than half of those who contribute put in the maximum amount allowed by law, according to the most recent analysis of the Employee Benefit Research Institute’s unique IRA Database. EBRI Issue Brief Jan 17, 2017 32 pages

The U.S. Census Bureau’s widely used Current Population Survey (CPS), which two years ago underwent a major redesign of the questions pertaining to income, appears to be resulting in a significant undercounting of how many people participate in an employment-based retirement plan, according to a new analysis by EBRI. Press release. EBRI Notes Nov 21, 2016 16 pages

The average 401(k) plan account balance of workers who participated consistently in one 401(k) plan increased significantly over the four-year period ending at year-end 2014, according to new data published today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI). EBRI Issue Brief Sep 8, 2016 28 pages

What’s the average balance of an individual retirement account (IRA)? New research by EBRI shows that it matters how you count. For instance, looking just at the balance per account, the average amount was just over $100,000 in 2014, the latest data available. But if you look at the total IRA balance per individual IRA owner, the average amount was almost $127,600—almost a third higher. EBRI Issue Brief Aug 25, 2016 48 pages

A recurring issue with defined contribution (DC) savings plans such as the 401(k) is the risk of “leakage”--preretirement reductions in plan savings by workers, either through loans, hardship withdrawals, or payouts at job change. EBRI’s spring policy forum, attended by about a hundred benefits experts, highlighted new work on leakage as part of its session on “Retirement Challenges and Reforms.” Press release. EBRI Notes Aug 9, 2016 8 pages

Interest in target-date and other types of balanced funds remained strong through 2014, with younger plan participants more likely to hold target-date funds than older participants, according to a new joint study released today by the Employee Benefit Research Institute (EBRI) and the Investment Company Institute (ICI). EBRI Issue Brief Apr 28, 2016 80 pages

With the United States facing an estimated national retirement savings shortfall of $4.13 trillion, how can more Americans be brought into a retirement savings plan, and how can they be persuaded to save enough to cover expected costs in retirement? Those questions were explored by a panel of retirement experts at EBRI’s 77th policy forum held Dec. 10, 2015, focusing on policy proposals aimed at increasing private-sector retirement plan coverage and possible improvements to retirement plan designs by sponsors of retirement plans. Press release. EBRI Notes Apr 27, 2016 16 pages