5 issues facing the retirement market in 2012
From 401(k) matches to the definition of fiduciary, 2011 was a busy year in the retirement industry. Experts reflect on the biggest developments and what’s ahead for 2012.
Restoring 401(k) matches
In 2011, companies began to restore matching employees’ 401(k) contributions. The chief executive of ASPPA, Brian Graff, says that his organization is “enthusiastic that companies are reconsidering their match levels because it’s clear that most Americans are not saving sufficiently for retirement and the match is a critical way to get them to save more.”
And in 2012, Bill Harmon, senior vice president of 401(k) sales at Great-West Retirement Services, believes that even more companies will restore matches, as it’s a recruiting tool. “I believe it’s going to be these headlines that say ‘large corporation started their match back up’ that will start that sense of competition again,” he says. “Now granted, we also need unemployment to go down again to say that we need this sense of competition. But when those two storms come together and I really don’t believe we’re far away from it ... then you’re going to see this.”
