Addressing retirement adequacy
Purchasing power has significantly declined given Defined Benefit (DB) Plan benefit rates and the rising cost of retiree medical. Are there steps you can take to provide for a more secure future for your participants?
As market returns have lagged expectations in traditional multiemployer DB plans, future benefit accruals have been flat or reduced. At the same time, medical cost inflation has made the cost of securing post-retirement medical coverage challenging. As a result, the ability to retire at early retirement ages has significantly eroded over the last 10 or more years for many participants. Forecasting the adequacy of retirement income sources in the future paints an even bleaker picture for those planning to retire before government sources kick in.
Do you know where your plan stands in its ability for members to retire?
If this is a concern, there are resources that we can assist you with preparing to provide your participants to help them strategize about their retirement planning, such as:
- A comprehensive benefit statement that clearly shows how plan benefits work together with government programs (Social Security and Medicare)
- A personalized in-depth benefits communication for a Defined Contribution savings plan, that shows how saving more now and waiting to retire impacts retirement savings levels at various retirement ages
- Examples of monthly pension benefits for Defined Benefit Plans, at various years of service to illustrate potential retirement benefit levels at future retirement ages
- Illustrations of how medical costs with a Retiree Medical Plan are supplemented before and after government Medicare begins
- A personalized overall retirement readiness score, training sessions, presentations and more
Contact us to learn more about solutions that might be right for your plan and participants.