The aftermath of the economic crash in 2008 has forced many Baby Boomers to alter how they prepare for retirement. Boomers who once felt prepared for their fast-approaching retirement found they had very little left to live on; the traditional “safe” withdrawal rate of about 4 percent has become hard to meet with the current low interest rates and high market volatility. Baby Boomers need alternate strategies to ensure they have sufficient income to enjoy a dignified retirement.
In the cover story of Plan Consultant magazine, Cleo Chang, managing director and head of Wilshire Funds Management’s Investment Research Group, discusses recent developments in Baby Boomers’ retirement-preparedness strategies and how their actions will impact the economy. Chang focuses on two approaches Baby Boomers are taking as they alter their retirement blueprints: decreasing their spending and investing in riskier assets.
These historic shifts in retirement planning will impact the economy tremendously in the immediate future as thousands of Baby Boomers retire — as Chang points out, over 10,000 Baby Boomers turn 65 every day. The effects of such a large portion of the population changing their spending and investment habits, due to economic uncertainty and demographic trends, will impact the U.S. economy for a long time to come.
Also inside this issue of Plan Consultant:
• James H. Culbreth, Jr. (Shumaker, Loop & Kendrick, LLP) discusses the challenges of new developments in e-delivery regulation for plan sponsors.
• Bruce L. Ashton, Fred Reish and Joshua Waldbeser (Drinker Biddle & Reath LLP) talk us through how record keepers, TPAs and auditors can navigate the difficulties of form 5500 filings under 408(b)(2).
• How are Millennials shaking up the retirement industry? Sarah Simoneaux (Simoneaux Consulting Services) examines several case studies and concludes “their future is our future.”
• Stephen M. Saxon (Groom Law Group) explores how fee disclosure and other new regulations can turn workers into more active and informed plan participants.
• Glenn Dial (Allianz Global Investors) tells us why target-date funds need public benchmarks.
• How effective have fee disclosure regulations been since their introduction? Jason K. Chepenik (Chepnik Financial) fears their focus is misplaced.
• Tech gurus Yannis P. Koumantaros (Spectrum Pension Consultants, Inc.) and Adam C. Pozek (DWC ERISA Consultants, LLC) offer exciting alternatives to boring PowerPoints and share some apps they use to get creative with organization.
• Brian Graff, Executive Director / CEO of ASPPA, outlines the five retirement planning myths that stand in the way of Congress implementing meaningful actions.
• Extra features: Hear the latest updates on tax reform, tell Congress to Save My 401k, meet the new editor and art director of Plan Consultant Magazine, and more.