Key Data Missing from your 401(k) Statement

No strangers to taking their lumps, 401(k) investors are now worrying about the real value of their lump sums.

It’s beginning to dawn on 401(k) participants, especially the Baby Boomers nearing retirement, that they haven’t a clue how much sustainable monthly income their 401(k) lump sum can generate. In a recent ING survey, 84 percent of 401(k) participants said they want their employers to include a line-item on their 401(k) statements that would show how much monthly income they could expect in retirement based on their current lump sum 401(k) balance. This is indeed the key data point missing from every 401(k), and it’s an omission no one can afford. If you don’t have a clear idea of how much you can afford to pull out of your 401(k) lump sum without running it dry too fast, how do you know if you can even afford to retire in the first place? ...

BNet: Key Data Missing from your 401(k) Statement