More than half of first-time health savings account (HSA) contributors reduce their 401(k) account savings rate, new research shows. This needn’t put their retirement security at risk if some of their HSA dollars are used for long-term savings.
Employers can improve the value of workplace financial wellness initiatives by tracking metrics such as employee morale and financial stress, along with measures such as retention and absenteeism.
The COVID-19 pandemic has wreaked havoc on many things, including retirement plans. Here are four areas where retirement planning experts advise fresh thinking to help workers save for their golden years.
The IRS issued final regulations for Achieving a Better Life Experience (ABLE) accounts, which help people with disabilities to save for eligible expenses. More employers may now offer and contribute to ABLE accounts as an employee benefit.
Some employers are taking steps to ease employees’ financial burdens and setting up emergency savings accounts that allow automatic deposits through payroll deductions—much like how employees fund their 401(k) plans.
The Department of Labor issued an interim final rule that, starting August 2021, will require 401(k) plan sponsors to annually disclose to plan participants estimates on how much income their account balance would produce if used to purchase an annuity. Plan sponsors should work with their record keepers to formulate a plan for compliance.