The current market volatility and lower expected market returns shouldn’t warrant a change in retirement savings strategies for most workers, according to research from T. Rowe Price.
“However, older workers, especially those close to retirement, will have less time to recoup lower returns and may need to make up that ground by increasing their savings,” the company said in a press release.
The firm found that 401(k) plan participants on the whole have been staying the course. During the first half of the year, more than 95% have not made any investment exchanges, and fewer than 1% of those fully invested in target-date funds made any investment changes.
The firm continues to suggest that workers save at least 15%, including any employer contribution, of their annual salary for retirement. It suggested that those close to retirement but unable to meet their retirement savings benchmarks might consider delaying retirement for a year or two, taking part time work in retirement or making spending adjustments.
Also, Orion has added BlackRock, Fidelity, and Vanguard to its custom portfolios suite, and RedBlack has set up a new headquarters after crossing a trillion-dollar milestone.
Also, New York-based Legacy Edge Advisors names its first-ever CEO, while Novare Capital Management hires a Vanguard veteran with a multigenerational planning focus.
Asset managers are racing to bring private market products to retirement plans, but cost and liquidity concerns linger.
Treasury's latest tax-exemption crackdown on private schools lands in the wake of a separate push to restrict refundable credits for some immigrant filers.
Workforce trust measures predicted which companies came out ahead during COVID-19. The same dynamic may now be playing out across the AI transition — and the data suggests the spread could be just as wide.
Northern Trust’s Ken Lassner shows advisors how to convert volatility into after-tax portfolio gains
Dan Biagini of American Equity says the steady decline of pensions, longer lifespans and a reset in interest rates are rewriting how advisors build retirement income
