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Many Americans don't know, and it's getting even harder to calculate — especially as Social Security is poised to start reducing benefits in just about a decade. Related stories"That number is all over the place," Copeland said, referring to how much people are going to need in retirement savings. "It will be devastating if people who already are facing very dire retirement prospects get less Social Security than they're planning on. Estimating how much you will need in retirement may be helpful, even long before retirement. That highlights the fact that calculating how much you're going to actually need in retirement is complicated.

Persons: it's, That's, there's, Craig Copeland, Copeland, —, William Arnone, Indira Venkateswaran, Greenwald Organizations: Service, Security, Greenwald Research, Business, AARP, Wealth, Research Institute, Social, Social Security, National Academy of Social Insurance Locations: America

☆ Policy changes look to reduce 401(k) plan 'leakage'
▼ + stars: | 2024-02-10 | by ( Greg Iacurci | ) www.cnbc.com time to read: +5 min

About 40% of workers who leave a job cash out their 401(k) plans each year, according to the Employee Benefit Research Institute. The 401(k) ecosystem would have almost $2 trillion more over a 40-year period if workers didn't cash out their accounts, EBRI estimated. 85% of workers who cash out drain their 401(k)It's not all workers' faultIt's not all workers' fault, though. By law, employers can cash out the small account balances of former employees who leave their 401(k) accounts behind. It's not just workers who benefit: Administrators keep more money in the 401(k) ecosystem, likely padding their profits.

Persons: Craig Copeland, —, whittle, Spencer Williams, Vanguard Group —, wouldn't, Williams, who's, It's Organizations: Getty, Research, Fidelity Investments, Vanguard Group

☆ Why millennials' retirement outlook may be worse than older generations
▼ + stars: | 2024-02-09 | by ( Greg Iacurci | ) www.cnbc.com time to read: +9 min

'Deteriorating' retirement outlookAbout 38% of early millennials (those born in the 1980s) will have "inadequate" retirement income at age 70, according to projections from a 2022 Urban Institute study. watch now"We do see the retirement outlook deteriorating for future generations," including millennials, said Richard Johnson, director of Urban's retirement policy program and co-author of the report. Millennials' student loans dent their net worthA 2021 paper by the Center for Retirement Research at Boston College had similar findings. Meanwhile, the last major Social Security overhaul, in 1983, gradually raised the program's "full retirement age" to 67 years old. That will make it easier to save for retirement, according to a Brookings Institution report.

Persons: Jamie Grill, Craig Copeland, Gen X, Xers, Richard Johnson, Johnson, aren't, Millennials, Gen Xers, CRR, X, EBRI, Anqi Chen, Copeland, millennials, they're, William Gale, Hilary Gelfond, Jason Fichtner, there's, Sean Deviney, Deviney Organizations: Social Security, Research Institute, Urban, Center for Retirement Research, Boston College, Research, Transamerica Center, Retirement Studies, Finance, IRA, Pensions, Social, Center, Budget, Brookings Institution, Vanguard Group Locations: U.S, Fort Lauderdale , Florida

☆ A New Perk for Some Student Loan Borrowers: A 401(k) Match
▼ + stars: | 2024-02-02 | by ( Tara Siegel Bernard | ) www.nytimes.com time to read: +1 min

Student loan borrowers who are lucky enough to have access to a 401(k)-type plan, but are too stretched to save in it, may soon be helped by a new workplace benefit: Paying off their student loans can generate retirement savings contributions from their employer. Starting this year, workers with student loans can receive employer matching contributions in workplace plans, even if they’re not able to save anything on their own. The loan payments count instead. The new feature was made possible by legislation known as Secure 2.0, which included a package of retirement-related provisions intended to boost savings. “Employers can distinguish themselves in attracting and retaining workers by offering such benefits,” said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, a nonprofit, particularly those “who are struggling with their finances and have student loan debt.”

Persons: they’re, ”, Craig Copeland Organizations: Dow Inc, News Corp, Masco Corp, Unilever, Fidelity Investments, “, Research Institute

☆ IBM to end 401(k) match, offering a hybrid plan. Other firms can't 'pull off this type of change,' expert says
▼ + stars: | 2023-11-30 | by ( Stephanie Dhue | Stephanie-Dhue | ) www.cnbc.com time to read: +1 min

IBM, which decades ago helped lead the shift from defined benefit plans to defined contribution plans, recently told U.S. employees it will be scrapping its 401(k) match in favor of funding what it calls a "retirement benefit account." Starting next year, IBM will no longer provide a 5% match and a 1% automatic contribution into an employee's 401(k). IBM says the change adds a stable and predictable benefit to employees and helps diversity their retirement portfolios. "Under the plan, IBM bears 100 percent of the risk and must be prepared to pay the benefit at time of employee separation," IBM said in a statement. "Other companies may not have structure to pull off this type of change," said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute.

Persons: Craig Copeland Organizations: IBM, Treasury, Finance, Research Institute Locations: New York

☆ The Pension: That Rare Retirement Benefit Gets a Fresh Look
▼ + stars: | 2023-11-24 | by ( Martha C. White | ) www.nytimes.com time to read: +1 min

In an economy characterized by a volatile stock market and elevated inflation, a sure thing looks better than ever. For some Americans in the labor force right now, that looks like a pension. Striking members of the United Automobile Workers union made waves this year when the union’s leaders demanded the reopening of defined-benefit pension plans for workers hired after late 2007. leadership failed to persuade automakers to reopen the plans, the bold move didn’t go unnoticed by retirement benefit experts. did mention that in their negotiations, because that isn’t really something you would have seen 10 years ago,” said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute, a nonprofit organization.

Persons: ”, Craig Copeland Organizations: United Automobile Workers, Research Institute

☆ Higher Contribution Limits Are Coming for 401(k) Retirement Plans
▼ + stars: | 2023-11-10 | by ( Ann Carrns | ) www.nytimes.com time to read: +2 min

Even if you can contribute the maximum amount, that doesn’t necessarily mean you should, Mr. McBrien said. You may have other goals to save for besides retirement, said Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. Under the Secure 2.0 Act, a law passed late last year, savers earning $145,000 or more who make 401(k) catch-up contributions would have had to make them as pretax Roth contributions starting in 2024. Can I change the amount of my 401(k) contributions after open enrollment? But while health insurance choices are typically fixed for the full year unless you have a big change in your life, many employers let you tweak your retirement contributions at any time.

Persons: don’t, Kyle McBrien, McBrien, ”, Craig Copeland, “, Roth, pretax Roth Organizations: Research

☆ Pension plans are pretty rare. Here's who still has them and how they work
▼ + stars: | 2023-09-07 | by ( Jeanne Sahadi | ) edition.cnn.com time to read: +8 min

But not all unionized workers have equal access to their employer’s DB plan. One sticking point in the UAW negotiations is to restore access to company pension plans that had been closed to anyone hired after the union accepted deep concessions in its 2007 contract. Why employers moved away from traditional pensionsMany employers started making the shift to 401(k) plans and other DC plans in the 1980s. The PBGC protects pension benefits and continues to pay retirees should their employer or its DB plan become insolvent. Retirement readiness at risk for millionsSimply having access to a workplace retirement plan isn’t enough to guarantee a secure retirement.

Persons: “ We’ve, ”, Karen Friedman, That’s, —, Craig Copeland, Copeland, won’t, “, Friedman, nonparticipants, — CNN’s Chris Isidore Organizations: New, New York CNN, United Auto Workers, Big Three, Pension, Center, Bureau of Labor Statistics, DB, UAW, General Motors, Chrysler, Congressional Research Service, Research Institute, ”, federal, Guaranty Corp, Workers, Social Security, Vanguard, Security Locations: New York

☆ 63% of workers unable to pay a $500 emergency expense, survey finds. How employers may help change that
▼ + stars: | 2023-08-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +3 min

Secure 2.0 emergency savings provisionsThe Secure 2.0 legislation that was signed into law in December included two changes aimed at helping to make it easier for workers to access emergency cash. It may take another two to three years before the $2,500 emergency savings provision makes a difference, Copeland estimated. New awareness of need for emergency savingsHowever, experts say the legislative changes are still a big step forward for emergency savings. "This whole conversation has really brought to the fore the importance of emergency savings and emergency savings accounts," said Emerson Sprick, senior economic analyst at the Bipartisan Policy Center. Now, the financial industry, consumer advocates and others are starting to think about what comprehensive emergency savings coverage could look like, he said.

Persons: Joe Raedle, SecureSave, Devin Miller, Miller, Craig Copeland, Copeland, Emerson Sprick, We've Organizations: Getty, Workers, Research, IRS, Center Locations: Miami , Florida

☆ As retirement confidence drops, experts say focusing on these 4 factors can help
▼ + stars: | 2023-05-31 | by ( Lorie Konish | ) www.cnbc.com time to read: +5 min

Decide where you will live in retirement— Key deadline to watch: The sooner, the better. While you may start your Social Security retirement benefits as early as age 62, eligibility for Medicare generally does not start until age 65. Choose when to claim Social Security benefits— Key deadline to watch: By age 60, you should go to the Social Security Administration website and review your statement, recommends Copeland. When to claim Social Security retirement benefits is one of the big questions retirees face. "The later you can file for Social Security, the better it is as far as the amount you're going to get," John said.

Persons: Craig Copeland, Copeland, Dann Tardif, Susan Reinhard, It's, Reinhard, Jane Sung, Sung, Rupp, John Organizations: AARP, Institute, Social, Medicare, Security, State Health Insurance, Social Security, Social Security Administration, Sporrer, Getty

☆ Column: Inflation and the markets take a bite out of retirement confidence
▼ + stars: | 2023-05-02 | by ( Mark Miller | ) www.reuters.com time to read: +6 min

But persistent inflation and last year’s sharp stock market decline have shaken the confidence of American workers and retirees about their retirement prospects in a way not seen since 2008. That is the key finding of the 2023 Retirement Confidence Survey - the longest-running survey of its kind measuring worker and retiree confidence. But inflation affects everyone, and it is a constant risk factor in retirement plans - even when it is not making headlines. For starters, most retirees depend on Social Security for a substantial portion of retirement income - and it comes with built-in inflation protection. This year, the COLA was a whopping 8.7%, the largest inflation adjustment in four decades.

☆ Heading into retirement? Here are 4 key tips for mapping out a game plan
▼ + stars: | 2023-04-28 | by ( Lorie Konish | ) www.cnbc.com time to read: +6 min

Claiming Social Security benefits• Key deadline to watch: By age 60, you should go to the Social Security Administration website and review your statement, recommends Craig Copeland, director of wealth benefits research at EBRI. When to claim Social Security retirement benefits is one of the big questions retirees face. At full retirement age — 66 or 67, depending on your date of birth — you will receive 100% of the benefits you earned. "The later you can file for Social Security, the better it is as far as the amount you're going to get," John said. While you may start your Social Security retirement benefits at age 62, eligibility for Medicare generally does not start until age 65.

Our experts answer readers' student loan questions and write unbiased product reviews (here's how we assess student loans). The Secure Act 2.0, signed into law last year, makes it easier to prepare for retirement when you have student loans. Secure Act 2.0 allows employers to match employees' student loan payments with retirement contributions. The average monthly student loan payment is $460, according to the Education Data Initiative. Personally, I have [ insert student loan total here ] in student loans, and my monthly payments are [ insert monthly student-loan payments here ] .

☆ The racial retirement savings gap remains wide – How these state IRA programs are working toward equity
▼ + stars: | 2023-02-28 | by ( Darla Mercado | Cfp | ) www.cnbc.com time to read: +4 min

Indeed, about 64% of Hispanic workers, 53% of Black workers and 45% of Asian American workers have no access to a workplace retirement plan, according to AARP. State-facilitated individual retirement account savings programs have stepped in to attempt to close that racial savings gap. As of the end of January, there were more than $735 million in assets in these state-facilitated retirement savings programs, the center found. How it worksRather than competing against large corporate retirement plans, state-facilitated retirement savings programs turn their focus toward an underserved corner of the market: small businesses. Most of these state programs require businesses to either offer a workplace retirement plan or to help automatically enroll their workers into the state's program.

☆ Why college coaches are a hot employee benefit
▼ + stars: | 2022-12-19 | by ( Chris Taylor | ) www.reuters.com time to read: +5 min

Then she came across an employee benefit her company offered: A "college coach." It is an intriguing employee benefit, in the era of the 'Great Resignation' and 'Quiet Quitting.' says Craig Copeland, director of wealth benefits research at the Employee Benefit Research Institute. Getting help from college coaches is not to discount the critical work school counselors do every day. Since we are in the thick of application season, do not waste time in finding out if you have this employee benefit, especially if your teenager is looking ahead to college next fall.

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