Inflation fears cause pre-retiree retirement delay
According to a new study from Nationwide (8th annual Advisor Authority survey), inflation is cited as a primary reason for postponing retirement.
The study found:
- 60% of pre-retirees are postponing retirement due to inflation
- 46% credited economic recession as a threat to their retirement
- 35% said market volatility and taxes (23%) are additional concerns
In addition, 53% of pre-retirees are questioning the long-term practicality of Social Security and whether the benefits will be available to them during retirement. Twenty-six percent (26%) of pre-retiree investors say Social Security will exhaust funds in their lifetime, and 26% believe the benefits will run out after they’ve entered retirement.
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
DOL AND LEGISLATIVE CORNER
Key Provisions of the SECURE 2.0 Act of 2022
SECURE 2.0 builds on and expands reforms made in the SECURE Act of 2019 to significantly improve retirement savings opportunities for Americans. It contains 92 new provisions—some taking effect immediately while others will be effective in the coming years. These new laws promote savings, boost incentives to start retirement plans for businesses and provide more flexibility to those saving for retirement.
SRC has created a handy guide on the most important provisions affecting retirement plans.
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.
COMPLIANCE CALENDAR
Important Deadlines to Remember
<DOWNLOAD THE 2023 COMPLIANCE CALENDAR>
June:
- 30: Deadline for processing corrective distributions for failed ADP/ACP tests from plans with EACA, to avoid an additional 10% excise tax. (TPA, Plan Sponsor, Recordkeeper)
July:
- 15: Form 5558 filings begin for all plans that have not signed and submitted Form 5500/Form 5500-SF filings to IRS to extend the deadline to October 15, 2023. (TPA)
- 31: IRS deadline for filing Form 5500 without an extension or filing Form 5558 to extend Form 5500 filing date. (TPA, Plan Sponsor)
Aug:
- 31: Final deadline to provide all complete 2022 Plan Year Annual Data to Stones River Consulting. Plans with incomplete data provided will be assessed an additional $250 rush fee. (Plan Sponsor)
FRESH INSIGHTS
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>>
WOULD YOU LIKE A RETIREMENT PLAN ANALYSIS?
If you have any questions or would like a complimentary retirement plan analysis, click here>>
