As required by the Federal Civil Penalties Inflation Adjustment Act Improvements Act of 2015, the Pension Benefit Guaranty Corporation (PBGC) is adjusting monetary penalties for failure to provide certain reporting.
Using a cost-of-living multiplier provided by the Office of Management and Budget, the new maximum penalty under Employee Retirement Income Security Act (ERISA) section 4071 for failure to provide certain notices or other material information is $2,097.
Gen Xers, Baby Boomers Feel Need to Save More for Retirement
Among those who report having little in retirement savings, 59% say they don’t have enough or make enough money to save, while nearly one-quarter (24%) indicate they plan to rely on Social Security.
More than three-quarters of Generation X and Baby Boomers strongly agree (38%) or somewhat agree (39%) that they need to save more to afford the retirement they want.
An Ipsos/USA Today poll of 1,205 adults ages 45 to 65 from the continental U.S., Alaska and Hawaii, found 68% have personal savings for retirement, 40% invest in stocks, 39% have a pension, 19% have annuities, 19% have bonds, and 13% hold securities. More than half (52%) of respondents said they contribute to a 401(k) plan, while 42% contribute to an individual retirement account (IRA), 14% contribute to a health savings account (HSA), and 10% contribute to a 403(b).
When asked how they intend to fund their retirement, 12% said they will almost entirely rely on Social Security, and 30% said they will mostly rely on Social Security. Forty-two percent said they will mostly rely on their own savings or benefits, and 17% said they will almost entirely rely on their own savings and benefits.
The majority of respondents expect to retire at age 70 or before; 17% at 60 or under, 26% at ages 61 to 65 and 22% at ages 66 to 70. Only 7% said they do not plan to retire. Only 17% feel very prepared for retirement, while 42% feel somewhat prepared. Nineteen percent feel somewhat unprepared, and 22% feel very unprepared.
Similarly, only 15% feel very confident they will have enough money to last through retirement, and 40% feel somewhat confident. Twenty-three percent feel not very confident, and 22% feel not confident at all. Seventy-eight percent strongly or somewhat agree that they will cut back on spending in retirement. Seventy-two percent somewhat or strongly disagree that their families will help support their retirement.
NEXT: How much have they saved?
Sixty-five percent are very or somewhat likely to put at least $100 toward retirement over the next six months, but 77% said they are very or somewhat likely to put at least $100 toward paying off debt.
Seven percent of Gen Xers or Baby Boomers reported they have less than $10,000 saved for retirement, and 11% have $10,000 to $49,999. Fourteen percent have $50,000 to $99,999, and 19% have $100,000 to $249,999. Twenty-three percent have $250,000 to $999,999, and only 7% have saved $1 million or more.
Among those who reported they had little in retirement savings, 59% said they don’t have or make enough money to save, while nearly one-quarter (24%) indicated they plan to rely on Social Security, and 19% said they have a pension. Eight percent said it is just not a priority right now, and 6% said they lack information regarding retirement.
Twenty-three percent reported that they use a financial adviser or broker to help plan their investments, savings or retirement, while 21% rely on the Internet and 20% use advice from family, friends or co-workers. Eighteen percent use a financial planner, and 11% turn to newspapers or magazines.