Products February 19, 2013

Nationwide to Offer Fiduciary Service to 457(b)s

February 19, 2013 (PLANSPONSOR.com) – Nationwide Retirement Solutions will begin offering a plan sponsor investment fiduciary service built exclusively for 457(b) public sector plans. 
Reported by

Morningstar Associates LLC, part of the Morningstar Investment Management division, will help plan sponsors fulfill their investment fiduciary responsibility by creating and monitoring the plan-level investment menu for participating plans.  

As part of the service, plan sponsors will benefit from Morningstar Associates’ expertise through:  

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  •  Selection, monitoring and due diligence of all investment options;
  •  Investment menu monitoring reports, including quarterly individual fund reports, quarterly plan performance reports and an annual summary report; and
  •  Morningstar Associates’ acknowledgement of fiduciary support of the investment menu.

Nationwide will make the investment fiduciary service available to existing plan sponsor customers, and the services will also be included with a new 457(b) defined contribution (DC) plan offering Nationwide will introduce in the coming months.

“As part of our ongoing commitment to plan sponsors and their participants, we’re thrilled to provide these services to 457(b) retirement plans,” Eric Stevenson, senior vice president of Nationwide Retirement Solutions. “We also believe that by focusing this offering to smaller plans in the public-sector market, these plan sponsors will have access to capabilities and a level of support that is normally only available to much larger plans.”

Benefits February 19, 2013

Married Individuals More Prepared for Retirement

February 19, 2013 (PLANSPONSOR.com) – Married individuals are more likely than singles to have retirement savings and are also more confident in their retirement outlook.
Reported by

According to research from the Insured Retirement Institute (IRI), about 82% of married people reported having retirement savings, compared with only about 67% of single individuals.

In addition, only 14% of married individuals prematurely tapped into retirement accounts during the past year, compared with 21% of singles. Married individuals are also more likely than singles to continue contributing to their retirement accounts (about 67%, compared with 56% of singles).

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This could explain why married individuals reported being more confident in their retirement outlook. Nearly 40% of married people said they feel confident that they will have enough to live in retirement, while only 28% of singles said the same. Almost half (41%) of married individuals also said they believe their financial security will be more comfortable than their parents’, compared with only 26% of singles. 

Another possible reason married people have more confidence in having a secure retirement could be based on their plans to keep working. About 23% of married individuals plan to postpone retirement, compared with 16% of singles.

IRI also found that married individuals:

  •  Are more likely to have calculated a retirement savings goal—about 56% have calculated a goal, compared with about 41% of singles;
  •  Are more likely to have consulted with a financial planner—about half have met with a financial planner, compared with 38% of singles; and
  •  Are less likely to be relying on income from Social Security in retirement—37% expect Social Security to be a major retirement income source, compared with about 53% of singles.

This IRI Quick Facts was developed based on a survey of Americans aged 50 to 66. Results were collected in 2012. More research findings are available in IRI’s Boomer Expectations for Retirement 2012.

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