By Jeffrey Hemker
This post adds a third voice to Invesco’s retirement expertise. I’m pleased to join my colleagues Tom Rowley, who specializes in IRAs and general retirement strategies, and Jon Vogler, our legislative and regulatory expert. My focus is The Business of Retirement — capitalized because it’s the name of a multifaceted practice management program for the qualified plan business. My first post responds to an excellent question we received on Jon’s blog, “401(k) Makeover: Future Trends.”
While there’s no question that 401(k)s will change over the next few years, questions abound about how sponsors can adopt or adapt the changes to make their plans more effective at getting participants ready for retirement. The anticipated changes concentrate on two areas: automatic plan features and retirement readiness. It’s important to understand that these are linked: Auto features are the tool, and retirement readiness the outcome. When working with clients, you’ll need to:
• Understand how these changes will affect their plans.
• Advise sponsors about what plan features, processes or procedures can be changed to address existing plan problems.
• Remember that the onus on the sponsor isn’t necessarily to achieve full retirement readiness, but to demonstrate a conscious, active, verifiable effort to reach that goal.
Click here to read Hemker’s complete blog with detailed information on automatic plan features and retirement readiness.
Jeffrey Hemker is the National Sales Director, Retirement Division, at Invesco.
The information provided is for educational purposes only and does not constitute a recommendation of the suitability of any investment strategy for a particular investor. Invesco does not provide tax advice. The tax information contained herein is general and is not exhaustive by nature. Federal and state tax laws are complex and constantly changing. Investors should always consult their own legal or tax professional for information concerning their individual situation. The opinions expressed are those of the authors, are based on current market conditions and are subject to change without notice. These opinions may differ from those of other Invesco investment professionals.
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