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More 401(k) plan sponsors are offering to pay benefits in a form that guarantees a set level of monthly income, regardless of how long you live. And more employers are beginning to offer these plans, Time’s Dan Kadlec reports. “Before long your 401(k) may look a lot more like your dad’s pension,” writes Kadlec. That’s a good thing. Traditional pensions that pay a set monthly income to retirees, based on their wages and length of service, were once the foundation of retirement. Along with …
Employees contributed more to their 401(k) plans in 2011, according to Fidelity Investments, and matching contributions from employers were up, too. But despite this uptick in contributions, the year-end average for Fidelity’s 401(k) participants was down.
Retirement savers, take heed””these developments may not have made major headlines in 2011, but they’re still important to your retirement planning efforts. And while a diet high in sodium does increase heart disease risk, even more important is the ratio of sodium to potassium in your diet.
Savings Up, Market Down: Workers are putting more money into 401(k) retirement savings accounts, the stagnant economy notwithstanding. A recent survey from Mercer Workplace found 41 percent of 401(k) holders had increased contributions to their plans in the previous year (up from 31 percent in 2010). Participants also took a more active role in managing their plans’ stock portfolios, with 40 percent having reallocated their existing portfolios that year. And a greater number said they plan to contribute the maximum …
A new study published in the British medical journal Lancet says a host of factors, such as Medicare reimbursement, location and the availability of hospital beds, weigh more heavily on a doctor’s decision to operate than a patient’s needs, wants or whether surgery will improve their quality of life. And a growing number of 401(k) plan participants are bringing lawsuits against their employers (who administer the plans) for allowing poorly-performing and/or overly-expensive funds into their retirement portfolios.