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Seeking Help Planning Retirement Income

Last update on: Feb 02 2017
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Employers help employees plan for and accumulate funds for retirement. Employers provide education and resources to help employees decide how much to save and how much to invest to be able to fund an attractive retirement. Yet, as employees near retirement, employers don’t have much to offer. There aren’t too many tools for planning distributions or investing to preserve that nest egg for a few decades. That’s the word from money manager BlackRock after surveying boht employers and employees and taking a look at the 401(k) market. Most employees now are in target date funds, but those funds currently are for accumulation, not distributions.

Castille pointed to survey results showing that 67.7% of employees believed that their employers should care more about financially secure retirements, and 63.8% of employers believed, paternalistically, that their firms should indeed care more. But 57% of employees said their employers were not helpful in making sure that their money lasts all through retirement and only 17% of employers said they felt a great deal of responsibility about the issue.

BlackRock has a financial interest here. It manages a lot of money for 401(k) plans and recently began offering a series of target date funds designed to address the issue of helping employees manage portfolio for retirement income. The funds include immediate annuities. But many analysts agree that the current 401(k) structures aren’t set up to help people once they retire.

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