Employees are delaying retirement an average of 3 years

Employees are delaying retirement an average of 3 years



Inflation and Recession Fears Force Delayed Retirement

According to new data from Franklin Templeton Investments (2023 Voice of the American Worker Survey), inflation, market volatility, and historic drawdowns have forced workers to reassess their retirement plans.

The study found:

• 73% of workers agreed that inflation directly threatens their retirement plans.
• 63% said the current economic climate has affected their plans to retire early.
• 49% feel uncertain about their job stability—including 60% of Millennials.

In addition, employees have delayed their planned retirement age an average of three years—to age 65 from age 62.

Read more on the study here>>

What can plan sponsors do?

• Partner with your financial advisor to educate employees about ways to combat inflation and plan smartly.
• Contact your recordkeeper about their existing financial wellness programs and ways to promote them.
• Communicate regularly with employees about their financial needs.

If you’d like more ideas about helping to address participant concerns, reach out to your SRC account representative.
–Chris Oneal, President, Stones River Consulting

President Biden signed the SECURE Act 2.0 into law on December 29, 2022

There are over 85 provisions in the new law, and we have summarized the three most notable provisions:

• (Effective in 2023) Increase in RMD Age from Age 72 to Age 73: For the calendar year 2023, the required minimum distribution (RMD) age increases to age 73 for a person who attains age 72 after Dec. 31, 2022, and age 73 before Jan. 1, 2033. It will increase again to age 75 in 2033 for an individual who attains age 74 after Dec. 31, 2032.

• (Effective as of January 1, 2024) Student loan payments will be treated as elective deferrals for purposes of matching contributions: For 401(k), 403(b), 457(b), and SIMPLE IRA plans, employers will be permitted, though not required, to make matching contributions to employees who are paying off their student loans. For purposes of nondiscrimination testing, the provision permits a plan to test separately the employees who receive matching contributions on student loan repayments.

• (Effective January 1, 2025) New 401(k) and 403(b) Plans must offer Automatic Enrollment and Automatic Escalation of Deferrals: All new 401(k) and 403(b) plans that have been adopted after the date of enactment (Dec. 29, 2022) will have to offer automatic enrollment and automatic escalation of deferrals with plan years beginning 1/1/2025. Exempt from this mandate include small businesses with 10 or fewer employees, new businesses (i.e., those that have been in business for less than three years), SIMPLE 401(k) plans, church plans, and governmental plans.

The initial automatic enrollment amount must be at least 3% but not more than 10%. Thereafter, the amount is increased by 1% each year until it reaches at least 10%, but not more than 15%.

SECURE 2.0 has made many changes to the laws that govern retirement plans. As the IRS continues to release more guidance, SRC will keep you abreast of these important changes. If you have questions about Secure 2.0, please reach out to your Stones River Consulting consultant.

Important Deadlines to Remember



  • 15: Deadline for Employer Contributions remitted for tax deductions for S Corps or Partnerships (With no tax return extension). (TPA, Plan Sponsor)
  • 15: IRS deadline for corrective distributions due to failed Actual Deferral Percentage (ADP) or Actual Contribution Percentage (ACP) test to avoid an additional 10% excise tax. (TPA, Plan Sponsor, Recordkeeper)
  • 15: Deadline to adopt a profit sharing plan for 2023 for S Corps or Partnerships with no tax return extension. (TPA, Plan Sponsor)


  • 1: IRS deadline for participants to take their initial (1st year) Required Minimum Distribution (RMD). (TPA, Plan Sponsor)
  • 15: Deadline for Employer Contributions remitted for tax deductions for C Corps and Sole Proprietors (With no tax return extension). (TPA, Plan Sponsor)
  • 15: IRS deadline for processing corrective distribution for 402(g) Excess Deferrals. (TPA, Plan Sponsor, Recordkeeper)
  • 15: Deadline to adopt a profit sharing plan for 2022 for C Corps or Sole Proprietors with no tax return extension. (TPA, Plan Sponsor)
    • 18: Tax Day


  • 15: Non-profit tax returns due.
  • 15: All required Annual Plan Year data due to Stones River Consulting to allow us to complete your tax filing by the deadline. If received after 05/15, a $250 rush fee will be assessed. Additional fees will apply in August if complete data is still missing.
    Download the full 2023 compliance calendar.


7 Signs Your Retirement Plan Needs an Upgrade

Retirement plans can be very complex if plan sponsors don’t have the right partner by their side to help navigate the ins and outs.

Stones River Consulting created a new guide titled, 7 Signs Your Retirement Plan Needs an Upgrade, that helps plan sponsors understand:

  • What the four critical areas of a retirement plan are that need to be properly managed to maintain a successful retirement plan.
  • Warning signs that a plan may be in danger of falling outside of compliance.
  • How to get help to maintain a compliant retirement plan that benefits both the plan sponsor and its employees.

To request this guide, click here>>



If you have any questions or would like a complimentary retirement plan analysis, click here>>