Almost one-third — 31% — of full-time workers have taken a loan or made an early withdrawal from their 401(k) or IRA account, according to a study from the Transamerica Center for Retirement Studies.
This 'leakage' from tax-advantaged vehicles that encourage savings "can severely inhibit the growth of participants' long-term retirement savings," the study said, adding that from a policy perspective these early withdrawals should be discouraged.
Other survey findings confirm several common sense assumptions about savings and retirement: higher income workers save more, are more prepared for retirement and are more likely to use a financial adviser.
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Still, even among higher earners, savings seem inadequate for the expected longevity of today's workers. Those with an annual household income of $100,000 or more have saved $222,000, compared with the estimated median savings of $50,000 in all household retirement accounts and just $3,000 among those earning less than $50,000. College graduates have saved $160,000, compared with only $23,000 among nongraduates.
The survey found that only 65% of workers are offered a 401(k) or similar plan by their employers, including 71% of full-time workers and just 45% of part-time workers.
The report suggested expanding access to workplace retirement plans and encouraging wider adoption of automatic enrollment by retirement plan sponsors to increase participation rates among workers.
"The outcome is correct, but it's disappointing that FINRA had ample opportunity to investigate the merits of clients' allegations in these claims, including the testimony in the three investor arbitrations with hearings," Jeff Erez, a plaintiff's attorney representing a large portion of the Stifel clients, said.
The collaboration will give RIAs yet another access point into the alternatives space through a new unified managed account capability.
A drop in interest rates and easier access to capital has reignited appetite among private equity-backed consolidators, who accounted for 53% of RIA deals so far this year- their highest share since 2021 according to DeVoe & Company.
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Barely a decade old, registered index-linked annuities have quickly surged in popularity, thanks to their unique blend of protection and growth potential—an appealing option for investors looking to chart a steadier course through today's choppy market waters, says Myles Lambert, Brighthouse Financial.
