PLANSPONSOR - November - December 2023 - 32
FINANCIAL WELLNESS
A Thorny Issue
W
hen Clayton Boone meets clients
close to retiring, he asks
a question to underscore the
vagaries of unexpected costs: How would
you pay for a new roof in the second year of
your retirement?
As managing
director
of WD
Pensionmark in San Antonio, Boone leads
a team of advisers, and he finds that, when
they provide guidance to participants, the
individuals struggle picturing their dayto-day
in retirement, let alone envisioning
coping with unplanned costs.
" The reality is, many people have
spent the past 30 or 40 years [working]-
doing the same thing every day, " Boone
says, adding that, when his advisers meet
resistance to having some liquidity in
retirement, they take the person through
various scenarios to make the point.
Participants, sponsors and advisers
are paying attention to the role unexpected
costs can play in retirement. Studies show
that unplanned expenses can not only
diminish retirement savings for workers
still preparing for retirement but also have
an outsized effect for those already there.
Unforeseen costs can shrink savings
by as much as 37%, says a survey of U.S.
employees conducted by Goldman Sachs
Asset Management. Its poll of 3,673
employees this year, published in the report
" Diving Deeper Into the Financial Vortex:
A Way Forward, " also showed that just
36% of respondents had more than three
months of savings set aside for emergencies.
Instead of relying on an emergency
fund, 44% had tapped their retirement
savings at least once when changing jobs,
and 42% stopped saving due to a financial
hardship, the report says.
The financial pressures of unplanned
expenses can compound for retirees, says
Kathleen Barber, a vice president and head
of corporate benefits and compensation at
32 PLANSPONSOR.COM November - December 2023 Art by Klaas Verplancke
Participants need to prepare for surprise expenses in retirement
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PLANSPONSOR - November - December 2023
Table of Contents for the Digital Edition of PLANSPONSOR - November - December 2023
INSIGHTS
PARTICIPANT ANALYSIS
RULES & REGULATIONS
UPFRONT
A Cost-Conscious Approach
Exploring the Choices
2023 PLANSPONSOR Service Stars
PLANSPONSOR Roadmap
A Thorny Issue
Take Under Advisement
A Repair Guide for Errors
FIDUCIARY FORUM Annual Notice Season
NSIDE ANGLE An Influential Opinion
PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover1
PLANSPONSOR - November - December 2023 - INSIGHTS
PLANSPONSOR - November - December 2023 - 1
PLANSPONSOR - November - December 2023 - 2
PLANSPONSOR - November - December 2023 - 3
PLANSPONSOR - November - December 2023 - PARTICIPANT ANALYSIS
PLANSPONSOR - November - December 2023 - 5
PLANSPONSOR - November - December 2023 - RULES & REGULATIONS
PLANSPONSOR - November - December 2023 - 7
PLANSPONSOR - November - December 2023 - 8
PLANSPONSOR - November - December 2023 - 9
PLANSPONSOR - November - December 2023 - UPFRONT
PLANSPONSOR - November - December 2023 - 11
PLANSPONSOR - November - December 2023 - 12
PLANSPONSOR - November - December 2023 - 13
PLANSPONSOR - November - December 2023 - 14
PLANSPONSOR - November - December 2023 - 15
PLANSPONSOR - November - December 2023 - A Cost-Conscious Approach
PLANSPONSOR - November - December 2023 - 17
PLANSPONSOR - November - December 2023 - 18
PLANSPONSOR - November - December 2023 - 19
PLANSPONSOR - November - December 2023 - Exploring the Choices
PLANSPONSOR - November - December 2023 - 21
PLANSPONSOR - November - December 2023 - 22
PLANSPONSOR - November - December 2023 - 23
PLANSPONSOR - November - December 2023 - 2023 PLANSPONSOR Service Stars
PLANSPONSOR - November - December 2023 - 25
PLANSPONSOR - November - December 2023 - 26
PLANSPONSOR - November - December 2023 - 27
PLANSPONSOR - November - December 2023 - PLANSPONSOR Roadmap
PLANSPONSOR - November - December 2023 - 29
PLANSPONSOR - November - December 2023 - 30
PLANSPONSOR - November - December 2023 - 31
PLANSPONSOR - November - December 2023 - A Thorny Issue
PLANSPONSOR - November - December 2023 - 33
PLANSPONSOR - November - December 2023 - Take Under Advisement
PLANSPONSOR - November - December 2023 - 35
PLANSPONSOR - November - December 2023 - A Repair Guide for Errors
PLANSPONSOR - November - December 2023 - 37
PLANSPONSOR - November - December 2023 - FIDUCIARY FORUM Annual Notice Season
PLANSPONSOR - November - December 2023 - NSIDE ANGLE An Influential Opinion
PLANSPONSOR - November - December 2023 - PLAN PROFILE A Focus on Wellness
PLANSPONSOR - November - December 2023 - Cover3
PLANSPONSOR - November - December 2023 - Cover4
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