Four Scary Retirement Statistics

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PSI Newsletter and Website Header 10.2.15 
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Recently ThinkAdvisor shared some scary retirement statistics from a report by the National Association of Government Defined Contribution Administrators, Inc. (NAGDCA). These retirement statistics paint an alarming picture of most American’s state of retirement readiness. I have shared four of the more troubling retirement statistics below, and then outlined four quick, low-cost solutions you can implement to help your employees. [Read more…]

Three Obstacles On The Road To Retirement Readiness

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Participants can be their own worst enemies. Shlomo Benartzi (a leading authority on behavioral finance) has identified the following three retirement readiness obstacles that 401k plan participants need to overcome on the road to retirement readiness: [Read more…]

Ten Attributes Of A Retirement Ready 401k Plan

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

As a 401k plan sponsor you have no doubt embraced the concepts of retirement readiness. A significant part of helping employees achieve retirement readiness is providing a 401k plan with features that guide participants down the path to retirement readiness. The following 401k plan attributes are generally found in a retirement ready 401k plan: [Read more…]

Most U.S. Workers Not On Road To Retirement Readiness

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

A recent study published by the National Institute on Retirement Security shared some startling information about the retirement readiness of American workers:

  • 1/3 of all people between the ages of 55 and 64 haven’t saved anything for retirement.
  • 38 million working-age households in the United States have yet to start saving for retirement.
  • The average retirement savings for people 10 years away from retirement is $12,000.

Most of these workers may have limited ability to save or prepare for retirement. They also may not be in a position to hire a financial adviser to guide them. During my work with retirement plan participants over 25 years, I have met with many people who are close to retirement but have no retirement savings. What do I tell them? [Read more…]

Retirement Readiness: Employee Responsibilities

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

Employee retirement readiness has been described as the efforts an employer makes with their retirement program to give employees the opportunity to fund and structure the retirement they desire. Both the employer and its employees have certain responsibilities to fulfill in order for employees to achieve retirement readiness. Following is a list of employee retirement readiness responsibilities. [Read more…]

Retirement Readiness: Employer Responsibilities

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

The media often use the term “Retirement Readiness” to describe whether retirement plan participants will be properly prepared for retirement at the end of their careers. There is no assurance that any 401k plan can place participants where they need to be when they wish to retire. Participation in these plans is voluntary, contribution levels are discretionary and investment management is the responsibility of the participant.

Both the employer and the employees share responsibility for preparing employees for retirement. Employer retirement readiness responsibilities include suggesting a way of participating and providing the tools participants need to construct a path to retirement that works for them. The following items are generally thought to be employer retirement readiness responsibilities: [Read more…]

Retirement Readiness: Resetting Expectations

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PSI Newsletter and Website Header 10.2.15
By Robert C. Lawton, AIF, CRPS, President, Lawton Retirement Plan Consultants, LLC

After talking with retirement plan participants over the past 30 years, I believe most have the following retirement expectations:

  • No reduction in standard of living. Everyone is expecting to retire and live in the same house, go out to dinner just as often, enjoy vacations with the same frequency, etc.
  • More leisure time with the financial resources available to underwrite hobbies, travel, lifestyle, etc.
  • An income replacement ratio of 100% or more of pre-retirement income. [Read more…]