For its part, a Fidelity spokesperson told InvestmentNews that they only block online access and that a direct call with a company rep will help customers restore it (3).One example is Phoenix resident Kelly Havins, 63, who told The New York Times that he enlisted a Pontera financial advisor because, when it comes to managing his 401(k), he doesn’t “have the time or the understanding” (2). He said that when Fidelity contacted him to warn that he could be locked out of his account, he “thought it was a scam. ...

Core Insights - The primary concern for both active (34%) and retired (35%) 401(k) plan participants is the risk of outliving their retirement assets [1] - Inflation is a significant worry for 17% of active participants, while 19% of retired participants cite economic downturns as their top concern [2] - A majority of Gen Z (58%) and millennials (58%) expect their 401(k) accounts to be their main source of retirement income, aligning with 49% of all age groups [4][5] Group 1: Participant Concerns - 34% of active and 35% of retired participants are most concerned about their retirement assets lasting [1] - 18% of active and 32% of retired participants worry about health changes [1] - 17% of active participants identify inflation as their top financial worry, while 19% of retired participants cite economic downturns [2] Group 2: Generational Perspectives - 5% of Gen Z and 16% of millennials plan to rely on Social Security as their primary income source in retirement [3] - 33% of Gen Z feel "very confident" about maintaining their standard of living in retirement, compared to lower confidence levels in older generations [3] Group 3: Financial Advice Sources - 38% of active participants without a financial advisor rely on their retirement savings account provider for advice [6] - 24% seek guidance from their current or former employer, while 13% do not seek outside advice [6] Group 4: Spending and Loans - 58.5% of households taking out loans from their defined contribution plans saw healthcare spending rise by 10% or more [9] - 10.9% of DC plan participants took out a loan during the year of interest, with the highest prevalence among those aged 40-59 [11] - Participants with higher credit card debt are more likely to take out loans, with 20% of those with a high credit card debt/limit ratio doing so [12]

Core Insights - Workers are increasingly tapping into their retirement savings, indicating heightened financial pressure on households, which may worsen if the U.S. economy enters a recession in the near future [1] Summary by Sections Financial Pressure Indicators - The Vanguard Investor Expectations Survey reveals that investors are becoming more pessimistic about the short-term financial market outlook, with a growing number needing to access their retirement savings for cash [2] - Hardship withdrawals from retirement plans managed by Vanguard have reached the highest level since 2004, with 0.5% of workers making such withdrawals, totaling 250,000, which surpasses levels seen during the COVID-19 lockdowns and the 2008-2009 recession [3] - There is also an increase in loans against 401(k) accounts, with 0.9% of plan participants taking out loans as of October, a significant rise compared to the great recession [4] Withdrawal Types and Risks - Hardship withdrawals are allowed for specific financial needs as defined by the IRS, including medical expenses, college costs, and housing payments, but these withdrawals cannot be repaid, permanently reducing the account balance [5][6] - Participants often withdraw more than necessary to cover taxes and penalties, which can include a 10% penalty for those under 59.5 years old, although some penalties may be waived under certain conditions [7] Implications for Financial Health - The increase in households utilizing employer-sponsored retirement accounts may signal a decline in the financial health of U.S. consumers, as noted by Vanguard's global head of investor research and policy [8]

Core Insights - Workplace plan sponsors are evolving from merely overseeing 401(k) accounts to becoming full-service financial planning resources for employees, which could significantly impact the wealth management industry [1] Group 1: Plan Sponsors' Concerns and Actions - A survey of 1,144 plan sponsors indicates their primary concern is ensuring that their plans adequately prepare participants for financial security in retirement [2] - 92% of plan sponsors report collaborating with an advisor or consultant, although this role was previously limited to fiduciary responsibilities and investment recommendations [3] - 93% of plan sponsors now offer financial wellness programs, with over half implementing these programs within the last year [4] Group 2: Role of Advisors - Advisors are becoming essential resources as plan sponsors seek more engagement to enhance participant saving and engagement through financial planning and wellness programs [5] - The nature of expanded education provided by advisors varies across different plans, reflecting the unique needs of each sponsor [5] Group 3: Successful Offerings and Education - Successful offerings for plan sponsors include lunch webinar series on financial planning and dedicated sessions for individual participant questions, covering topics like cash flow, saving strategies, estate planning, tax planning, and retirement income [6] - There is a recognition that without proper education, participants may not fully maximize their benefits for their future [7]

Core Points - The article emphasizes the importance of timing when claiming Social Security benefits, highlighting that making the right decision is crucial for long-term financial well-being Group 1 - Reaching full retirement age (FRA) is a clear indicator that one is ready to claim Social Security, with the FRA set at 67 for those born in 1960 or later [3] - Waiting until FRA to claim Social Security avoids early retirement penalties and allows participation in Medicare, which can lower health insurance costs [4] - Delaying Social Security benefits can lead to increased retirement benefits, with potential increases of up to 24% by waiting until age 70 [5] Group 2 - Having other income sources to cover retirement needs is a sign of readiness to claim Social Security, as many individuals save in IRAs, 401(k) accounts, and other plans [6] - The amount of savings needed varies based on individual circumstances, and consulting a financial advisor is recommended to assess retirement plans [7] Group 3 - A strong desire to pursue retirement dreams indicates readiness to claim Social Security, provided financial conditions are favorable [10]