Few workers would be surprised to find out how much their current savings in a 401(k) plan would provide them in monthly income, and few are likely to save more or worker longer based on that income projection, according to an analysis by the Employee Benefit Research Institute in Washington.
Last May, the Department of Labor issued a proposal to require retirement plan statements to show how a worker's current account balance would translate into an estimated lifetime income stream of payments. DOL plans to issue a lifetime income rule proposal in August.
Based on an analysis of the results of the just-released 2014 Retirement Confidence Survey, EBRI found that while the vast majority of respondents (only workers who are contributing to an employer plan) found the information useful, they weren't surprised about the income projection.
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Melanie Waddell
Melanie is senior editor and Washington bureau chief of ThinkAdvisor. Her ThinkAdvisor coverage zeros in on how politics, policy, legislation and regulations affect the investment advisory space. Melanie’s coverage has been cited in various lawmakers’ reports, letters and bills, and in the Labor Department’s fiduciary rule in 2024. In 2019, Melanie received an Honorable Mention, Range of Work by a Single Author award from @Folio. Melanie joined Investment Advisor magazine as New York bureau chief in 2000. She has been a columnist since 2002. She started her career in Washington in 1994, covering financial issues at American Banker. Since 1997, Melanie has been covering investment-related issues, holding senior editorial positions at American Banker publications in both Washington and New York. Briefly, she was content chief for Internet Capital Group’s EFinancialWorld in New York and wrote freelance articles for Institutional Investor. Melanie holds a bachelor’s degree in English from Towson University. She interned at The Baltimore Sun and its suburban edition.
