401(k) Specialist Issue 2 - 2024 - 6

401(k) NEWS YOU CAN USE
NIRS Urges Pension Coverage for Private
Sector to Senate HELP Committee
THE NATIONAL INSTITUTE ON RETIREMENT SECURITY (NIRS) is
calling for pension coverage expansion among private-sector employees
in a new research issue brief.
The research, " Policy Ideas for Boosting Defined Benefit Pensions in
The Private Sector, " responds to a request by the U.S. Senate Health,
Education, Labor, and Pensions (HELP) Committee on information in
growing pension plan coverage for private-sector employees.
The brief highlights two key issues within private-sector plans: First,
it says that plans should provide retirement adequacy for " the large
majority of Americans lacking pensions " regardless of demographic
profile and income. Second, NIRS' research states that defined benefit
(DB) pension plans should provide affordability and sustainability for
employers.
It offers the following for Congress to consider in broadening pension
coverage: Lower the per-person rate of Pension Benefit Guaranty
Corporation (PBGC) premiums for single-employer pension plans;
Reduce the variable rate PBGC premium; Formally acknowledge
in statute risk-sharing plans; Permit greater flexibility in the use of
funding surpluses in DB plans; Allow pre-tax employee contributions
in private-sector pensions similar to state and local government
pension plans; and Formally acknowledge in statute that retirement
benefits should be fungible for each individual and allow transfers
from defined contribution plans to pension plans (and conversely) in
the vein of Revenue Ruling 2012-4.
Americans Anticipate Transitioning Into
a Slow Retirement
MORE AMERICANS anticipate a slow transition into retirement rather
than just exiting the workforce, finds new data by Allianz Life.
According to the findings, 47% of Americans believe they will gradually
enter retirement, while 38% say they will have a " distinct date " in stopping
work and retiring fully. On the other hand, 15% say they don't see a
future where they can retire slowly, or at all.
Allianz Life found that Baby Boomers (58%) are the most likely to consider
a phased retirement. Second in line are Gen Xers (53%), followed by
Millennials (45%).
Asian American respondents were also the most likely out of any
group to want a slow retirement (56%), compared to 49% of Black/African
American respondents, 48% of white, and 46% of Hispanic respondents,
found Allianz Life.
The research underscores the idea that workers are changing how
they want to spend their golden years. In the Allianz Life data, 68% of
respondents believe people should expect to work later in life in order to
have enough money to retire, and another 61% say people should expect
that they'll need to work in retirement to survive.
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ISSUE 2 2024 | 401kSpecialist.com
What's more, 80% of respondents to the study say working longer or
retiring later would help ensure that they could financially support all
the things they want to do in life. On a personal level, 63% say they will
likely continue working at least part-time in retirement to supplement
their income.
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401(k) Specialist Issue 2 - 2024

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