Ted Godbout

Industry Leaders: Build on Existing Framework to Address ‘Challenges’

By Ted Godbout 9/29/2017

Retirement industry leaders appearing at a recent Capitol Hill event generally agreed that building on the existing system would dramatically improve the retirement readiness of Americans throughout the country.In what turned out to be coincidental timing, the Financial Services Roundtable hosted a... READ MORE

Employee Engagement a Better Financial Wellness Metric, Study Says

By Ted Godbout 9/28/2017

Suggesting that it’s time to change the return-on-investment (ROI) conversation with respect to financial wellness programs, a recent paper contends that a more effective way to prove a program’s value is by measuring employee engagement.Ernst & Young explains that creating a suite of benefits... READ MORE

Equity Market Performance Propels Strong Growth for DC Plans

By Ted Godbout 9/28/2017

DC plans measured as part of the Callan DC Index realized a “healthy” 3.06% in return growth during the second quarter of 2017, reflecting strong equity market performance and the greatest first-half performance since the Index’s inception in 2006. Combined with first-quarter gains, the Index’s... READ MORE

Rep. Wagner Again Introduces Bill to Repeal DOL Fiduciary Rule

By Ted Godbout 9/28/2017

Rep. Ann Wagner (R-MO) introduced legislation on Sept. 27 that would repeal the Department of Labor’s (DOL) fiduciary rule and create a new standard of conduct for brokers and dealers.Wagner has had her sights set on rolling back the fiduciary regulation since 2015, when she first introduced... READ MORE

Legislation to Expand Hurricane Relief Emerges

By Ted Godbout 9/25/2017

Congress has released draft legislation consistent with recent recommendations by the American Retirement Association to expand access by victims of Hurricanes Harvey, Irma and Maria to their 401(k) and similar plans without incurring IRS penalties and taxes.The draft legislation, currently named... READ MORE

Good Plan Design Can Help Women Achieve Secure Retirement

By Ted Godbout 9/21/2017

With statistics showing women having a longer life expectancy and a significant retirement savings gap compared to men, incorporating good DC plan design and financial wellness programs can help women establish a path for a secure retirement, panelists suggested at a recent policy forum.“The Gender... READ MORE

Health Care Expenses to Outpace Inflation — Forever?

By Ted Godbout 9/21/2017

A new report indicates that retiree health care expenses will not only continue to increase, but will do so at triple the current rate of inflation for the foreseeable future.That unsettling news comes from HealthView Services’ 2017 Retirement Health Care Costs Data Report, which shows that retiree... READ MORE

ICI Finds Minimal 401(k) Account Changes in 1st Quarter

By Ted Godbout 9/15/2017

As stock values generally rose during the first quarter of the year, most deferred compensation plan participants continued with their asset allocations and contribution levels, and maintained low withdrawal activity, according to the Investment Company Institute (ICI).A recent ICI study, “DC Plan... READ MORE

Most DC Plan Participants Don’t Understand Roths, Survey Finds

By Ted Godbout 9/15/2017

Amid all of the recent talk about tax reform and the potential move toward Rothification, Cerulli Associates has come out with a new report showing that only one-third of DC plan participants can correctly identify the benefits of Roth contributions.The results are part of a 2017 survey Cerulli... READ MORE

Gig Workers Compromising Financial Security for Flexibility

By Ted Godbout 9/15/2017

While estimates of the size and growth of “gig employment” vary, there are several indications that gig work is here to stay, even though such work may have a destabilizing effect on personal financial security, a new survey shows.Noting that it conducted the survey to better understand the... READ MORE

Millennials Engaged in Retirement Saving, But Challenge Norms

By Ted Godbout 9/15/2017

Millennials are taking steps to save early for retirement, but they also have higher expectations that employers should be offering access to a retirement savings plan and socially responsive investments, according to new survey results.The Capital Group’s Wisdom of Experience survey found that... READ MORE

What Motivates Investors to Switch IRA Providers?

By Ted Godbout 9/8/2017

In a recent LIMRA study, the top two reasons retirement investors gave for selecting another company to manage their IRAs were relationships and recommendations.The LIMRA Secure Retirement Institute explains that relationships are cited most by those who have an existing relationship with a chosen... READ MORE

Does a Large Retiree Population Affect Investment Returns?

By Ted Godbout 9/8/2017

A population with more retirees than workers will reduce the demand for and increase the supply of savings, putting downward pressure on investment returns, according to a compilation of research reviewed in a recent issue brief by the Center for Retirement Research at Boston College (CRR).The... READ MORE

Congress Returns to Busy Fall Schedule

By Ted Godbout 9/5/2017

The House and Senate returned Sept. 5 from a month-long break facing an extremely busy legislative calendar.The legislative agenda was already packed full, with the need to approve funding legislation for fiscal year 2018 (which begins Oct. 1), increase the debt limit, determine whether to revisit... READ MORE

Health Care Tab in Retirement: $275,000

By Ted Godbout 9/5/2017

That’s the average amount a 65-year-old couple retiring this year will need to cover medical expenses (in today’s dollars) throughout retirement, according to the latest retiree health care cost estimate from Fidelity Benefits Consulting.Fidelity notes that while the 2017 estimate of $275,000 is... READ MORE

How Do Employers Feel about State Retirement Expansion Ideas?

By Ted Godbout 8/21/2017

The Pew Charitable Trusts recently published a report reviewing the findings of a survey to gauge employer reactions to leading state retirement policy ideas where they found strong support among small and mid-size businesses for automatic IRA programs, multiple employer plans (MEPs) and online... READ MORE

Survey: Financial Stress Hampering Retirement Savings Efforts

By Ted Godbout 8/18/2017

Financial stress and everyday money matters are hindering Americans’ retirement savings efforts and affecting the job performance of many employees, a new nationwide survey reveals.Consisting of 1,000 workers with access to a 401(k) plan with half actively contributing to their plan and half not... READ MORE

Fiduciary Rule Tab: Billions in Compliance Costs, Saver Disruptions

By Ted Godbout 8/15/2017

Compliance with the Department of Labor’s fiduciary rule has reduced access to brokerage advice services and choice, cost billions, and disrupted retirement savers, according to a new study.The study, commissioned by long-time opponent and fiduciary rule litigant SIFMA and conducted by Deloitte... READ MORE

Let the Jockeying Begin on Tax Reform

By Ted Godbout 8/11/2017

Prior to departing for their summer breaks, House and Senate GOP leaders indicated that they plan to pivot from repealing and replacing Obamacare to making enactment of broad-based tax reform their number one priority.What are the chances of that happening? Lawmakers face a number of hurdles and a... READ MORE

Cash Balance Plans Continue Solid Growth, Report Finds

By Ted Godbout 8/8/2017

Surpassing industry projections, the number of new cash balance plans adopted by employers increased by 17% — rising to 17,812 active plans — in 2015, the most recent year for which complete IRS Form 5500 data is available, according to new research by Kravitz, Inc., an Ascensus company.Kravitz’s “... READ MORE

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