Filed Under:Annuities, Fixed Indexed

Middle-class retirement ‘under siege’: IMCA 2014

The middle class is “under siege” from unemployment, mounting debt and home values that have yet to recover, Marcia Wagner, managing director of the Wagner Law Group, said Monday at the IMCA conference.

The Obama administration has recognized its need to “buttress” the middle class to protect their retirement and is making efforts to incentivize savings and improve returns, she said.

Wagner also talked about the DOL’s proposal for lifetime income disclosures. The proposal requires a quarterly statement of projected monthly income assuming a 7% return and 3% annual contribution increase, and using a 3% discount rate to convert future dollars into current dollars.

Under those assumptions, a 50-year-old plan participant with $125,000 in 2014 would end up with $500,000 in 2029, but that would fall to $321,000 after the discount rate. That leaves the participant with an estimated $1,800 per month.

Originally published on ThinkAdvisor. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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Nichole Morford

Nichole Morford
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