Participant Guide: 3 Ways to Confront Your Financial Fears
- Bjork Group
30% of Americans don’t have a budget. In fact, 3 in 5 don’t know how much they spend last month, and the median household retirement account balance in America is $50,000.
Stop Retirement Savings Setbacks
- Bjork Group
The global pandemic has had a staggering effect on the economic lives of millions, driving them to actions that could have long-lasting effects on their retirement savings.
Facing unprecedented strain caused by the COVID-19 crisis, individuals who lack adequate emergency savings are turning to retirement plans to address their financial shortfalls.
Additionally, hardship withdrawals have been made easier by the passage of the 2020 Coronavirus Aid, Relief, and Economic Security (CARES) Act. The Act expanded distribution options, offered favorable tax treatment for coronavirus-related distributions from eligible retirement plans and relaxed payback options for those who met specific criteria.
A reported six percent of retirement plan holders took advantage of at least one CARES Act provision offered by the plan. Of these withdrawals, 21% took the maximum amount allowed under the Act ($100,000 or 100% of the vested balance).
A CFO's Guide to Financial Wellness
- Bjork Group
When employees are financially stressed, they spend three or more hours a week – approximately 150 hours per year – worrying about personal finances or dealing with them at work.
Normalizing Retirement Savings Habits
- Bjork Group
Many American workers struggled financially before the COVID-19 pandemic. Therefore, it isn’t surprising that this crisis could greatly hinder their ability to reach their retirement income goals.
Indeed, more than three-quarters of employees (77%) say they have been concerned about their financial well-being since the COVID-19 outbreak and 82% will rely on their workplace retirement plan as a primary income source in their post-working years. That is, if they can get there — four in five employees expect to continue working for pay after “retiring.”
In addition, many simply can’t afford to retire; the median household retirement savings is just $50,000. That’s nowhere near the 60-80% replacement income financial experts say most people need to maintain their pre-retirement standard of living.
What does all this say about retirement readiness in America? More importantly, what does it indicate about the effectiveness of workplace retirement plans?
The data above clearly demonstrates that for far too long and far too many Americans, reaching a successful replacement retirement income has been the exception, not the norm. So, it stands to reason that employers must reimagine the function of their company’s retirement plan to help “normalize” saving for the future.
Employers should evaluate their plan’s value through the lens of helping more employees retire on time and with dignity. That means getting employees to recognize that saving for retirement isn't “optional” if they want to stop working someday. It also means providing them with the right tools toward helping them save enough to replace their income for 10, 20, 30 or more years.
5 Reasons to Rethink Financial Wellness
- Bjork Group
Employees are worried about their finances. They worry about them in the evenings, on weekends and during working hours. Plus, with the increased stress caused by the pandemic, it’s no secret your workforce could use some help.
Q2 2021 Newsletter: Financial Wellness Edition
- Bjork Group
We are excited to welcome Q2 with the theme of Financial Wellness! This quarter, we are going to touch on some important topics that impact your bottom line and the financial health of your employees.
Video: 4 Actions to Help Reduce Retirement Plan Litigation
- Bjork Group
Your company retirement plan should be a valued benefit, not an open door for lawsuits!
Three Pillars of Wellness: Mental, Physical, and Financial Guide
- Bjork Group
As the seasons change, employees may need a check-up from their employers to make sure they are in good health!
The Importance of a Retirement Plan Committee & Annual Reviews
- Bjork Group
Retirement plans are complex and have many moving parts; as such, many plan sponsors create retirement plan committees to help keep them running smoothly. They may be called “investment” or “administrative” committees and can range in size. Regardless of the name or number of people involved, the committee’s organization, process and documentation are key to success.
Annual Retirement Plan Checklist
- Bjork Group
As a plan sponsor, you are responsible for keeping your plan in compliance with government regulations.