Defined Contribution

Weeks after the Department of Labor rescinded its crypto guidance warning for 401(k) plans, four Senators sent a letter to Labor Secretary Lori Chavez-DeRemer, urging her to reinstate that guidance "to ensure retirement security for millions of hardworking Americans." 

"With 50% of employees not confident they can turn their retirement savings into a consistent stream of income for the rest of their lives, many organizations are rethinking pension strategies and how best to support their workforce," said Scott Jarboe, Mercer's U.S. defined benefit segment leader.

That's one year sooner than previously forecast, according to the just-released Social Security Administration's annual Social Security and Medicare Trustees Reports, which urge lawmakers to "quickly enact legislation to make the necessary adjustments."

Amid heightened inflation concerns, workplace retirement plans need to go beyond simply offering a 401(k) and match – and must now include ongoing financial advisory, investment planning and income solutions, according to the financial services firm.

Not only should employers offer lifetime income, workers feel it is an employers' responsibility to do so, which represents a dramatic increase in interest in guaranteed lifetime income, according to new research from Nuveen and TIAA Institute.

Most working Americans plan to rely on Social Security as their primary source of retirement income, followed by a 401(k), but side hustles will also play a key role across generations.