Your answer to this one question could determine the right strategy for your retirement savings:
There are two types of retirement savers when it comes to an employer-sponsored retirement account: those who are active and others who are passive. Knowing which you are may help you save more for the future.
But there’s one more determinant: how savers perceive the default contribution rate, which is the percentage of employees’ salaries deposited into a retirement plan. Workers who rely on auto-enrollment may stay at the default contribution rate , while the ones who are more financially literate and would otherwise opt-in, will increase the default contribution rate, the researchers found.
Automatic enrollment might have been a blessing in disguise for retirement savers. Thanks to the implementation of work from Richard Thaler, the 2017 recipient of the Nobel Prize in economics, workers may have gained another nearly $30 billion in retirement savings, according to his fellow researcher Shlomo Benartzi.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
The best way to save for retirement may include this underused planMost companies offer a Roth 401(k) option that lets workers contribute after-tax dollars, which can then be withdrawn tax-free in retirement. But only 11% of workers take advantage of this type of retirement plan.
Read more »
Should You Find A New Financial Professional When You’re Approaching Retirement?What most people do not realize is that the financial strategies utilized during your working years are often drastically different than what is needed to provide sustainable, maximized income with minimal taxes during retirement.
Read more »
USPS worker delivers amazing rendition of 'At Last' to celebrate retirementThis USPS worker has never taken a singing lesson in her life, but that didn't stop her from stunning the crowd when she performed a song to celebrate her last day at work.
Read more »
Why Money Is The Last Thing You Need To Think About As You Approach RetirementYour plan for where to retire, heallthcare and work will drive your financial plan in retirement. Real world lessons.
Read more »
New tools can help turn your retirement savings into a steady paycheckOnce you stop working, you are confronted with a big dilemma: how to make your retirement savings last. New personalized tools aim to help identify which accounts to pull your money from and when.
Read more »
UniCredit CEO: any workforce reduction will be made thru early retirement -memoAny workforce reduction at Italy's UniCredit will be handled through early ...
Read more »