401(k)

Even though 68% of workers are saving for retirement, nearly half, 46%, have less than $10,000 saved for retirement, and 50% are not confident they will have enough money to live comfortably in retirement, a survey by the Employee Benefits Research Institute found.

A majority of Americans find retirement planning confusing and want additional help, a study by the ING Retirement Research Institute conducted by the Boston Consulting Group found.

The Hartford found in a recent survey that 37% of Americans age 45 and older with incomes below $50,000 worry more about rising taxes than those with higher incomes, but are less likely to participate in a 401(k) or other retirement plan that could reduce their taxes. By comparison, 28.5% of those earning $50,000 to $100,000 have such worries, and 32% of those earning more than $100,00 are worried about taxes.

AllianceBernstein, having expanded the diversification of its target-date funds earlier this year to mitigate the effects of inflation, has just issued a white paper discussing the importance of grappling with inflation risk.

Putnam Investments announced Thursday that the Lifetime Income Analysis Tool it developed for 401(k) plans to show investors how much monthly income their savings will deliver, has motivated investors to increase their retirement savings rate by an average of 23%. Participants can use the tool to change their retirement date, portfolio mix and contribution rate to immediately see the impact.

Invesco has introduced PlanForward Foundations, a set of three toolkits to help advisers grow their defined contribution business.

American workers exited 2010 with more than $10.2 trillion invested in employer-sponsored retirement plans, up 10% from the $9.3 trillion in play at the close of 2009, according to a new report from Chicago-based affluent investor consultant Spectrem Group.The beefed-up portfolios is just the latest sign that investors are finally starting to regain confidence in the market and, perhaps more important, making a concerted effort to stash away assets for their golden years.

Lincoln Financial Group is recommending that workers use the 2% reduction in Social Security tax as additional retirement savings. It joins the company of The Hartford and ING which have made similar recommendations.

Fidelity Investments recently reported that the average 401(k) account balance it managed reached a 10-year high of $71,500 at the end of 2010, and for those who had consistently contributed to their plan, $183,100.

Retirement plan participants using an online tool save at an average rate of 39% higher than other plan participants, according to a study by Principal Financial Group of its clients.

Male and female participants in MassMutual’s retirement savings plans had about the same among of their retirement assets in asset allocation options in the fourth quarter of 2010—24.3% for women and 24.0% for men. However, nearly all of the women’s allocation was to target-date funds, while the men had half their assets in target-date funds and half in risk-based options.

Fidelity Investments reported Wednesday that the average 401(k) account balance held with it hit a 10-year high of $71,500 at the end of 2010. For participants who continuously contributed to their 401(k) the average balance increased to $183,100 from $59,100 a decade ago.

MassMutual’s retirement services division is launching an interactive seminar series for participants on Feb. 23 called RetireSmart. The first session, on “Understanding What’s Driving the Economy,” will be presented by the firm’s Chief Economist Jerry Webman.

With regulatory reform bringing a wave of changes to defined contribution plans, advisers need to be even more conversant in the ins and outs of legislative requirements and other complexities. Which is why BlackRock is beefing up its commitment to advisors who work with these retirement plans.

Three years ago, just before the credit crisis, many Americans were using home equity lines of credit like cash machines. And at that time, Bank One, now part of JPMorgan Chase, proposed allowing individuals to withdraw small sums from their 401(k) retirement plans through debit cards.

The Hartford has launched a new marketing campaign,” Two for Tomorrow,” advising Americans to take the 2% reduction in Social Security payroll taxes and use the money to boost their retirement savings.

While Americans have remain committed to saving for retirement through their 401(k)s, a significant portion of households owning financial investments, 37%, have become more conservative in their saving, asset allocation and choice of retirement age, according to a survey of 3,000 households at the end of 2010 by the Investment Company Institute.

While regulators have focused on target-date funds since the financial crisis, most investors understand the funds’ basic design and are aware of their risks, a Vanguard survey of 4,700 investors shows.

Putnam Investments has promoted Robert E. Alan to head of North American consultant relations and Keith E. Thomas to head of international consultant relations. The two will work with the consultants who advise institutional investors on investment strategy and the selection of managers.

Employers are clearly more optimistic about the economy, for another 40% that had suspended 401(k) contributions will resume them by mid-2011, doubling the 40% that already have resumed suspended or reduced matches, the Profit Sharing/401(k) Council of America announced.