Retirement

The Department of Labor has withdrawn its proposal to eliminate what it referred to as a "redundant" safe harbor rule that provides a standard for fiduciaries in selecting annuity providers.

It is crucial for plan sponsors to think ahead and familiarize themselves with new provisions coming in 2026, including higher catch-up contributions, big changes to required minimum distributions and changes for annuities.

By the end of this year, an average of 11,400 Americans will turn 65 each day, as employers need to simplify the annuities process and better meet the growing demand for guaranteed income products.

Employers need to be aware of the increased limit on catch-up contributions on older participants, as well as DOL's new policy on transferring benefit payments on missing participants and uncashed checks of $1,000 or less.

Eighty percent of Americans consider retirement insecurity to be a crisis, up from 67% just a few years ago, the survey found.

There's been a shift in retirement planning, as plan sponsors are embracing proactive plan design strategies that cater to the diverse needs of a multi-generational workforce, including leveraging automatic features and investment defaults, according to JP Morgan's plan sponsor survey.