Beyond determining how much money to save, it’s useful to think about retirement in terms of how much income you’ll need after you stop working. Dimensional’s My Retirement Income Calculator can help give you a sense of how much income your savings could provide in retirement.
The 401(k) has become the sole vehicle for many people saving for retirement, says Jody Strakosch. With so much focus on a single plan to provide most retirement income, plan sponsors are more focused than ever on how to help participants have good outcomes, Strakosch explains.
How do we design DC plans to address the need for sustainable retirement income for investors? Professor Michael Drew of Griffith University highlights why the conversation must transition from “How much have I saved for retirement?” to “What’s my retirement income stream?”
One way to increase participation among plan participants may be to make both the choice and the consequence clear. Punam Keller, PhD, at the Tuck School of Business explains how her research in the health care industry applies to participants in retirement plans as well.