Every year studies are completed to find out how Americans are tracking with retirement, how they feel about their overall financial fitness, and what steps employers or financial planners could take to help improve target retirement savings.
Retirement is not just about the personal goals you set for your own future, but for many people, it’s a cornerstone of their estate plan distribution intentions. When you pass away, you use beneficiary forms with your retirement account managers to ensure that the people you choose get what is inside. The more money you save, the more you have to support yourself as well as your loved ones.
The most recent study completed by Morgan Stanley identifies that plan sponsors are prioritizing the design of 401(k) plans amidst uncertainty and labor shortages. Boosting 401(k) engagement and participation can have significant impacts on your overall savings, especially if your employer participates in a plan match. You may be able to grow substantial retirement benefits that help you or can be left behind to loved ones when you pass away.
Some of the features that are most valuable for Americans inside 401(k) plans include plan design variety, such as profit sharing, auto enrollment, and Roth 401(k)s, access to a financial advisor to ask questions, digital tailored and engaging education and auto features.
Automatic enrollment and automatic enrollment escalation and automatic employer contributions can make it more likely for people to consistently contribute to their retirement funds. If it’s been some time since you adapted your retirement plan and estate planning strategy, now may be the perfect opportunity for you to revisit this. Working with a qualified estate planner can help you ensure that you have filed the appropriate beneficiary designations with your retirement plan sponsor to ensure that your chosen loved ones receive these assets if something happens to you.