More Older Americans Are Working
A recent Pew Research Center analysis found that the number of older Americans working is increasing. Nearly nine million people, or 18.8% of Americans ages 65 and older, are employed. Only 36.1% of workers 65 and older are working 35 hours or less in 2016, a drop from 46.1% in 2000. Older workers are more likely to be in management, legal, and community/social service jobs than the overall labor force and less likely to work in the accommodations/food services industry.
Financial Knowledge Helps Retirement Savings
A study by the Pension Research Council found that financial education programs provided by employers impact the decisions of employees concerning their retirement savings. Federal Reserve employees who took a learning module about retirement planning contributed more of their salaries to retirement savings and had a higher percentage invested in equities than those who didn’t take the learning module.
DOL Increases Monetary Penalties
To adjust for inflation, the DOL has increased the penalties for certain employee benefit plan violations. The changes include increasing the maximum daily penalty from $1,100 to $2,063 for each day that Form 5500 is filed late. In addition, for 401(k) plans with automatic contribution arrangements, the penalty for failing to provide the required ERISA preemption notice to plan participants increases from $1,000 per day to $1,632 per day. Any future adjustments to these increases will be made by January 15 of each year beginning in 2017.
The general information in this publication is not intended to be nor should it be treated as tax, legal, investment, accounting, or other professional advice. Before making any decision or taking any action, you should consult a qualified professional advisor who has been provided with all pertinent facts relevant to your particular situation.