Three ways to help Americans secure their financial future

Part 2 in a series detailing recommendations from the Commission on Retirement Security and Personal Savings

In my last post, I listed six key challenges facing Americans as they save for retirement, as identified by the Bipartisan Policy Center’s Commission on Retirement Security and Personal Savings (of which I am a co-chairman). I also discussed the commission’s recommendations on ways to address three of those challenges: limited access to workplace retirement savings plans, insufficient personal savings for short-term needs and the risk of outliving retirement savings. In this post, I discuss the commission’s proposed solutions to the final three challenges to saving for retirement.


White House directs DOL to examine fiduciary rule

Part of Invesco’s Legislative Insights series

Jon VoglerOn Feb. 3, 2017, President Trump issued a memorandum directing the Labor Secretary to undertake an updated “economic and legal analysis” of the likely impact of the Department of Labor (DOL) fiduciary rule with several key considerations in mind:

  • Whether the April 10, 2017, applicability date of the fiduciary rule has harmed (or is likely to harm) investors through a reduction of Americans’ access to certain retirement savings offerings, retirement product structures, retirement savings information or related financial advice.
  • Whether it has resulted in dislocations or disruptions within the retirement services industry that may adversely affect investors or retirees.
  • Whether it is likely to cause an increase in litigation and an increase in the prices that investors and retirees must pay to gain access to retirement services.

Test your CIT knowledge

Do you know the key features of collective investment trusts? Take our quiz and find out.

Warrick_headhsotI regularly talk with retirement plan sponsors who are considering collective investment trusts (CITs), along with mutual funds and other investment vehicles, as part of their investment menus. I find that their knowledge is growing about CITs (pooled investment funds designed exclusively for qualified retirement plans), but they still have many questions about how CITs work.

To help you gauge your knowledge about CITs (also known as collective trust funds, or CTFs), I developed this short quiz. There are no prizes — other than the CIT knowledge you need when developing your lineup of investment options for your plan participants. Answers are at the end.


Six key retirement challenges facing Americans today

Part 1 in a series detailing recommendations from the Commission on Retirement Security and Personal Savings

LockhartThe nation’s retirement system has many strengths, but it is also experiencing challenges. Retirement and savings policies have evolved over the decades into a true public-private partnership. Assets in workplace retirement savings plans and Individual Retirement Accounts (IRAs) have grown dramatically over the last four decades, but too many Americans are still not preparing adequately. Social Security remains the base of financial support in old age for most Americans, yet the program faces substantial financing problems. A long history of bipartisanship built these systems to promote savings and improve retirement security, but much work lies ahead.


529 plans: Not as puzzling as they seem

Piecing together an organized college savings plan on National Puzzle Day

Tom RowleyThe holidays are finally over. Or are they? In reality, every day is a holiday — if you believe the websites that document this type of thing. There’s International Sweatpants Day, National Popcorn Day, Measure Your Feet Day and even Answer Your Cat’s Question Day. (That last “holiday” was Jan. 22, so you have an entire year to prepare for your next feline inquisition.)

Taken in context then, National Puzzle Day sounds pretty reasonable. We don’t know who conceived of this holiday — it remains a mystery, which seems appropriate — but we do know when it is: Jan. 29. What does all this have to do with 529 college savings plans? I can think of at least three things you need to do to be successful at both puzzles and college savings. Let’s take a look.


Retirement worries span generations

Part of Invesco’s Saving for Life series

Andrew LasterAlthough generational differences run the gamut from music preferences to the digital divide, baby boomers, Generation X and millennials have this in common: concern about retirement security. According to a recent survey1:

  • 45% of boomers (born between 1946 and 1964) anticipate a lower standard of living in retirement.
  • 83% of Gen Xers (born between 1965 and 1979) feel that achieving financial security will be more difficult for them than it was for their parents.
  • Only 18% of millennials (born between 1980 and 1995) feel very confident about retirement.
  • 77% of all workers surveyed are concerned about the potential for diminishing Social Security benefits.

In addition, because only about half of workers in these three generations believe they’re saving enough for retirement, they anticipate working at least part time in retirement. More telling, 15% expect this will be their primary source of retirement income.

Let’s take a closer look at the overall retirement picture for each generational cohort.