Jack VanDerhei

2 months ago | morningstar.com | Spencer Look |Jack VanDerhei

The retirement savings gap between higher- and lower-income households is well-documented. The real question is, what can the industry do to close the gap and help investors be better prepared for retirement? Enter the Saver’s Match. This federal program was created as part of the Secure 2.0 Act of 2022. Starting in 2027, it will provide eligible savers a 50% match on the first $2,000 of qualified retirement contributions (where eligibility is based on modified adjusted gross income).

Nov 7, 2024 | morningstar.com | Spencer Look |Jack VanDerhei

Roughly 50% of Americans do not have access to a retirement plan through their employer. The Retirement Savings for Americans Act, introduced in Congress in October 2023, aims to close that gap. In particular, the RSAA would create a federal retirement plan, automatically enrolling workers without access to an employer-sponsored plan at a 3% savings rate. The RSAA would also provide a federal match tax credit for low- and moderate-income workers that would begin to phase out at median income.

Sep 10, 2024 | morningstar.com | Spencer Look |Jack VanDerhei

In 1974, Congress transformed the American retirement system. By a unanimous vote in the Senate and a margin of 407-2 in the House, it passed the Employee Retirement Income Security Act. The goal was to protect workers who had lost their pension, like those of the bankrupted Studebaker-Packard corporation. It was intended to protect defined-benefit pensions. Fifty years later, as the landmark law turns 50, it’s clear the law did not have the anticipated impact.

Jul 30, 2024 | morningstar.com | Spencer Look |Jack VanDerhei

There’s long been talk of a looming retirement crisis in the US. However, our research suggests a more nuanced reality. In our new report, my colleague Jack VanDerhei and I analyzed the likelihood that today’s US workers will have adequate financial resources in retirement using the new Morningstar Model of US Retirement Outcomes. Get the full report: Beyond the Retirement Crisis HeadlinesThis new model aims to provide a comprehensive and realistic assessment of the retirement landscape.

Jun 18, 2024 | morningstar.com | Jack VanDerhei

The Secure 2.0 Act of 2022 introduced the Saver’s Match, a program designed to give your retirement savings a significant boost. In a recent study, I investigated the efficacy of this program with respect to mitigating race/gender disparities in 401(k) outcomes. Here’s what individual investors and financial advisors need to know.