10 Retirement Quick Facts for September

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Here are some great stats, figures and trends to help with the oversight of your company sponsored retirement plan and may aid in conversations or communications with plan participants.  


  1. RISKY BEHAVIORS. Objective data ranks financial risks in retirement as 1) longevity risk, 2) health risk and 3) market risk. But individuals rank market risk as #1, then longevity and health risk. Researchers propose this is partly because individuals tend to exaggerate the effects of market volatility and underestimate their life expectancy and late life health costs. (Source: Center for Retirement Research at Boston College)
  2. HOW LOW CAN YOU GO? Expense ratios of mutual funds continue to decrease, and 401(k) plan participants enjoy some of the lowest fees: equity mutual fund fee average expense ratios for 401(k) plan assets decreased from .77% in 2000 to .36% in 2021 compared to industry-wide fees decreasing from .99% in 2000 to .47% in 2021. (Source: Investment Company Institute)
  3. TRANSITION ADVICE. The majority of retirees who worked with a financial advisor to transition into retirement said that help with asset allocation was the most valuable (74%). Of those, 38% valued help in understanding risk tolerance most, while 36% valued help in understanding how to turn their savings into an income stream the most. (Source: Employee Benefit Research Institute)
  4. ASK MORE QUESTIONS. Although 83% of plan participants report being satisfied with the investment options available in their employer's plan, 40% do not understand target date funds (TDFs) in general, 45% do not understand how to choose the right TDF, and 50% do not understand environmental, social and governance (ESG) options. (Source: Employee Benefit Research Institute)
  5. GRAD STANDARDS. 88% of adults polled think a semester - or a year-long personal finance course should be required for high school graduation. Spending and budgeting were the most important topic areas selected for this type of education, followed by managing credit, saving, earning income, investing, and managing risk. (Source: National Endowment for Financial Education)
  6. SHOULD I STAY OR SHOULD I GO? Only 18% of plan participants expect to leave their retirement savings in their former employer's plan when they retire, but 54% of plan sponsors would prefer to keep participant assets in the plan after they retire. (Source: MFS 2021 Global Retirement Survey, Cerulli Report: US Retirement Markets 2021)
  7. A LONG GOOD-BYE. Nearly half (43%) of 401(k) plan participants expect a gradual transition into retirement where they may reduce hours or switch jobs, while 30% anticipate a hard stop, and 23% are not sure yet. (Source: MFS 2021 Global Retirement Survey)
  8. MEET YOUR MATCH. In 2020, nearly half of 401(k) plans (47.1%) allowed immediate eligibility for employer matching contributions, 34% require 1-6 months of employment, and only 17.6% required 1 full year of service. Forty-one percent of all plans also offered immediate vesting of matching contributions. (Source: Plan Sponsor Council of America)
  9. NATIONAL 401(K) DAY. September 9th is National 401(k) Day! This is a great opportunity to bring attention to the importance of retirement readiness. For resources to use with your plan and plan participants, check out the "Knowing Your Numbers" campaign centered on this important day.
  10. HAPPY LABOR DAY. Labor Day became a federal holiday in the US in 1894 but the state of Oregon was the first state to celebrate Labor Day in 1887. One of the reasons for choosing the first Monday in September was to add a holiday in the long gap between Independence Day and Thanksgiving. What will you be doing on Labor Day? If you are grilling, you join almost 66% of Americans who will be enjoying a hamburger or hot dog. Make it a safe and happy one!


QUESTION. How many retirement plans conducted a Request for Proposal (RFP) or Request for Information (RFI) in the last 2 years? The answer can be found by dropping me an e-mail at [email protected]


For more information on Allied's retirement plan services, feel free to contact us at (406) 839-2037 or learn more here.



The views expressed in this post represents the opinion of Allied Investment Advisors, a Registered Investment Adviser. This material is for informational purposes only. It does not constitute investment advice and is not intended as an endorsement of any specific investment or services. Nothing contained herein constitutes financial, legal, tax, or other advice. The information provided herein is obtained from sources believed to be reliable, but no representation or warranty is made as to its accuracy or completeness. Investing in equity securities involves risks, including the potential loss of principal. While equities may offer the potential for greater long-term growth than most debt securities, they generally have higher volatility. International investments may involve risk of capital loss from unfavorable fluctuation in currency values, from differences in generally accepted accounting principles, or from economic or political instability in other nations. Investment recommendations may change and readers are encouraged to check with their investment advisors before making any investment decisions. Past performance is not indicative of future results. Investments are not a deposit of or guaranteed by a bank or any bank affiliate. Please notify Allied Investment Advisors if there have been any changes to your financial situation or investment objectives or if you wish to impose or modify any reasonable restrictions on the management of your accounts through Allied Investment Advisors.