Social Security Remains Strong Overall and Separate From the Budget

Social Security remains strong as seen in today’s long-term projected outlook by the Social Security Trustees. While today’s report reminds us that we must eventually make modest changes to ensure current and future generations of Social Security beneficiaries receive what they’ve earned, it confirms that Social Security can continue to pay full benefits for nearly two decades. The Trustees once again report that the combined Old Age, Survivor and Disability Insurance Trust can pay full retirement, survivor and disability benefits for approximately two more decades, and about 75 percent of …

New Retirement Savings Plan Is Win-Win for Workers, Businesses

Last week, I sat down with Adrienne Mitchell of MarketWatch to talk about what 57 million American workers lack: a way to save for retirement at work – leaving them with little opportunity to secure their financial future. Just think about this for a minute: For workers who do have access to a retirement savings plan in the workplace, such as a 401(k), this increases their savings rate by 1300%. And, no, that’s not a typo. So, how can we …

Is Your 401(k) a Winner? Check This Ranking

ConocoPhillips Co. has the best 401(k) plan for workers, while Facebook Inc., Amazon.com Inc. and Whole Foods Market Inc. offer some of the worst, according to a Bloomberg News survey of the 250 largest public companies in the country. In fact, ConocoPhillips’ plan is so generous – contributing 9 percent of workers’ pay if workers kick in 1 percent – that after 35 years an employee can end up a multimillionaire, Bloomberg said. According to the Houston-based oil and gas producer’s own …

Silence Could Be Costly in Family Financial Planning

Parents and their adult children say they want to have honest conversations about finances and retirement issues, but they just don’t agree on when to talk, according to a survey released today by Fidelity Investments. And when these discussions do eventually occur, they often don’t get down to the details needed for proper financial planning, the Boston-based investment firm found. Lauren Brouhard, senior vice president of retirement at Fidelity, urges families to bite the bullet and talk – before parents retire …

ESOP Administrators Have Duty to Employees, Supreme Court Says

The Supreme Court is looking out for Americans with employee stock ownership plans (ESOPs), a form of retirement plan. That’s what the justices essentially said in their unanimous June 25 decision in Fifth Third v. Dudenhoeffer, in which employees sued because their ESOP administrators invested in a way that caused them to lose money. In this case, the administrators, or “fiduciaries,” had invested the employees’ money in the employer’s own stock even though they knew (according to the plaintiffs) that …

Greater Saving Can Increase Retirement Security and Economic Growth

  Increased saving can be an important driver of future economic growth and rising living standards. That is the conclusion of a new report by Oxford Economics – Another Penny Saved: The Economic Benefits of Higher US Household Saving – sponsored by AARP and 10 other organizations. The U.S. personal saving rate has been declining for more than 30 years. And the report’s authors project the rate will drop further – from around 4 percent today to about 3 percent …