Paycheck Replacement

Today’s defined contribution plan environment requires employees to accept greater responsibility for securing their retirement spending needs than in the previous pension generations. In general, however, most employees have not saved sufficient amounts to meet their retirement goals.

The below chart, taken from Manning & Napier’s 2013 White Paper entitled Helping Employers and Employees Navigate the Health/Wealth Convergence, depicts the average balance for various participant age cohorts for a group of consistent 401(k) participants as of 12/31/2011:

Average_401k_Balance

There is a building sense of urgency as retirees are outliving their retirement nest-egg due to several factors, including:

  • Increased life expectancies
  • Insufficient savings
  • Poor investment decisions

Combine that with the fact that personal savings and Social Security are no longer considered significant sources of retirement income, highlights the importance of a strong 401(k) plan.

At Washington Financial Group, we meet this challenge head on by helping you attempt to optimize plan outcomes for participants through effective plan design, measurement and education.


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