4:30 PM - 7:00 PM
Student Center, L. A. Pittenger
IS YOUR SIX PERCENT 401(K) CONTRIBUTION A PLAN OR A PRAYER Many financial pundits suggest that employees contribute six percent of their wages to their retirement account. Most employers who provide partial matches to their employees’ contributions limit that match to the first six percent. As a result, many sponsors of traditional defined benefit plans, especially public employee plans, question whether they should continue to fund in excess of six percent since that seems adequate to many participants. The goal of a retirement plan should be to accumulate adequate wealth to provide sufficient income during retirement. Extensive research has been conducted examining the maximum amount a retiree can safely expect to withdraw from their retirement savings, yet relatively little research has explored integrating the savings (accumulation) and withdrawal decisions. Terry Zivney’s presentation investigates what rate of savings contributions is necessary to plan for a safe retirement in a 401(k) – 403(b) world.