Los Angeles partner Fred Reish's monthly column, "Getting Older" in Plan Sponsor magazine discusses the fact that Americans are living longer and that employees and married couples who retire at 65, should plan for at least 30 years of retirement living.
Fred notes that 70 or even 72 is the new 65. He believes that this will present a bevy of new issues for employers. Including, making larger 401(k) contributions, automatically enrolling and increasing deferral rates, providing retirement planning services to employees age 50 and older and offering income projections about retirement needs for all employees.
Fred also discusses that even with deferred retirement dates, employees will need additional information such as how much income they will need in retirement. They will need to know how a 401(k) account balance can be used as income for life.
Fred notes that this article is more about asking questions rather than having answers. Questions that employers should start thinking about and working to answer.