Save 10 is a business to business, peer to peer effort to encourage responsible employers to help their employees better prepare for a secure retirement by enabling them to Save 10% of their income, including through automatic savings programs.
SAVE 10 is a coalition of best-in-class employers and resource partners who offer, are committed to offering, or are helping Americans achieve retirement security through Saving 10%.
The response to our Save 10 $tories Video Contest was huge! And after your votes were tallied, we have a winner. Congratulations to Paige Rood from Utah State University who takes home the grand prize of ,000! “Sally’s Lemonade” tells the story of a girl named Sally who saved 10% of her earnings from a lemonade stand toward retirement. The end result is a strong, successful financial future. Thanks to Paige and all our contestants who showed America who, when, why, and how anyone can Save 10.
By Alison Hawkins, VP of Communications at FSR: A third of Americans haven’t saved anything for retirement. Another third haven’t saved enough. By 2034, the Social Security trust fund will be exhausted and millions of people working toward retirement could be out of luck. Many workers are going to find themselves wanting to retire but will either be unable to do so or will have to retire under circumstances they never imagined for their golden years. And this is not just a personal problem, but a massive economic problem with red flags waving wildly in the wind.
FSR is being recognized today with the Society for Financial Education & Professional Development’s Eagle Award, which is given to an organization that does extraordinary work promoting financial literacy and makes significant contributions to financial education.
U.S. Treasury Secretary Jack Lew praised retirement savings efforts, including FSR’s Save 10 initiative, during a conversation at the Financial Services Roundtable’s fall executive conference with FSR CEO Tim Pawlenty last week.
Save 10 is an effort to encourage more retirement savings via employers, including by advocating for proven mechanisms to increase savings such as auto enrollment. The Treasury has its own initiative on retirement savings, myRA, which Lew also discussed as another effort to increase retirement savings.
Lew also highlighted the need for swift action to address the nation’s looming debt ceiling, and urged Congress to move forward.
In the well-known fable by Aesop, a grasshopper savors the summer by chirping and singing, while an ant toils all summer long to store up food for the winter. There is some merit in both characters’ actions. The grasshopper makes the most of the season, and enjoys the beauty and simplicity of summer. He does what’s easy, and lives his life to the fullest with a carefree enthusiasm both enviable and inspiring. The ant, in his own way, makes the most of the season by working the entire summer to prepare against the coming winter. He does what’s smart, and works hard to prepare for the tough times ahead even though this means missing out on the leisure of summer. Everybody knows the end of this story—the ant is comfortably prepared for winter while the grasshopper is miserably cold and hungry.
A wide swath of middle-income Americans are concerned about the potential outcomes that a Department of Labor’s proposed conflict of interest rule will have on their retirement preparation, according to a new study of more than 1,000 middle-class IRA holders. Of particular concern for IRA holders is the significant impact the proposed rule could have on access to, and choice of, retirement products, with the potential creation of a two-tiered system for the provision of retirement services, where only wealthy investors get the best retirement advice.
Auto-enrollment and auto-escalation are easy and impactful ways that employers can help their employees save for retirement. Two new studies, one by Boston College and another by Bank of America Merrill Lynch, back that point up.
The use of auto-enrollment to encourage Americans to save for retirement through their employer sponsored savings plans was the focus of FSR’s “The Business Case for Auto-Enrollment” event this week, which featured Senior Advisor to the Secretary of the Treasury Mark Iwry and Northern Trust President of Asset Management Steve Potter, among others.
“We need to get to the next generation – a 3.0 401k model,” said Iwry, who urged employers to consider using auto enrollment and other simple saving features to encourage employees to prepare for retirement.
On Monday, June 15, FSR and CEO Tim Pawlenty will host a financial security event “The Business Case for Auto-Enrollment & Increasing Financial Security”, which will include remarks and a panel discussion with key retirement and financial security experts from the federal government, major corporations and think tanks.