The survey also produced a Retirement Readiness Rating that s designed to indicate how well individual workers are preparing for retirement. The scale runs from 0 to 25, with those scoring 25 apparently doing the best job of preparation. The items used to compute the score for each worker include saving for retirement, completing a savings needs calculation, establishing an investing or savings strategy for retirement, and attitudes toward various aspects of preparing for retirement. People need to make sure their money lasts a lifetime, he emphasizes. A great concern among employees is that they ll outlive their assets.
Field thinks many employees lack confidence in their ability to manage their retirement plan assets.
That s not surprising when you consider that a majority of professional money managers underperform their benchmarks. Given the sideways movement of the stock market this year, it s easy to see why employees might want to lock in profits amassed during prior years. Employees can take up to two loans from their vested defined benefit plan account at any time. One loan can be taken for any reason, and one can be taken to purchase a primary residence. One possibility is that the new assets will generate more in investment returns for boa than boa ultimately will be obligated to pay out to its employees.