Category: Uncategorized

Retirement Planning Falls Short for Some, Underscoring Gap Between Intent and Action

Many Americans Unprepared for Life After Work 

Healthcare is Retirement Wild Card

IRALOGIX, the retirement industry’s leading fintech pioneer, today announced the debut of the IRALOGIX Retirement Readiness Index (IRRI), a comprehensive national benchmark built to track Americans’ preparedness to retire with financial security and peace of mind.

In its inaugural Q1 2025 evaluation, the IRALOGIX Retirement Readiness Index (IRRI), which measures Americans’ retirement preparedness across five critical areas, reported a national Retirement Readiness Score of 45.8 out of 100. Scores below 50 fall into the ‘Moderate Risk’ zone, indicating that many pre-retirees may face uncertain futures without adequate savings, healthcare coverage, or financial confidence to sustain themselves through retirement.

The IRRI distills the complex reality of retirement planning into a single, powerful number that will trend over time. Based on nationally representative survey data, the IRRI measures readiness across five critical dimensions: Savings and Investments, Healthcare Readiness, Lifestyle and Spending, Emotional Well-being, and Economic and Policy Confidence.

“This score is a wakeup call for America’s households, employers, and policymakers,” said Peter J. de Silva, CEO of IRALOGIX. “It’s not just a number, it’s a mirror held up to the financial anxieties, gaps in planning, and uncertainty that millions of Americans face as they approach one of life’s most important milestones: retirement. Our data shows that too few are prepared for both the financial and personal impact of aging-related issues, and are struggling with saving enough, planning for healthcare, and trusting that essential benefits like Social Security will be there when they need them. We believe the path to retirement readiness begins with awareness, and the IRRI is a step towards securing a more stable future for everyone.”

Retirement Readiness: Potential vs. Reality

When analyzing the results, each retirement readiness category (such as Healthcare Readiness or Savings and Investments) was assigned a maximum number of points it could contribute to the overall Retirement Readiness Score. This represents the “full potential” if Americans were perfectly prepared in that area. Based on survey responses, the “potential achieved” percentage tells us how much of that maximum was actually reached. The lower the percentage, the further away Americans are from being fully prepared in that dimension.

 

Where Americans Are Falling Behind: The Weakest Dimensions

 

Healthcare Readiness – 42.1% of Potential Achieved

Out of a possible 15 points that Healthcare Readiness could contribute to the national score, Americans only reached 6.3 points. This equates to just 42.1% of the ideal score in this area, making it the lowest-performing dimension.

What this means: Many lack a solid plan to manage healthcare costs in retirement, especially long-term care, which can quickly erode savings. Key gaps were noted in uncertainty about whether Medicare will meet future needs, absence of a plan for handling unexpected medical expenses, and fear of financial ruin from chronic illness or elder care. In an October 2024 survey on decumulation in retirement conducted on behalf of IRALOGIX, 37% of retirees said healthcare costs were their biggest withdrawal challenge, reinforcing the idea that healthcare isn’t adequately prioritized, either before or during retirement.

Savings and Investments – 43.2% of Potential Achieved

This category has the biggest influence on retirement readiness, with a maximum of 35 points available. Yet, respondents only realized 15.1 points, reaching just 43.2% of the potential in this crucial area.

What this means: Despite its importance, many are not saving enough or don’t know if their savings will last through retirement. Key gaps included low confidence in current savings, lack of a written retirement plan, and few respondents meeting regularly with financial advisors for retirement advice.

Lifestyle and Spending – 46.5% of Potential Achieved

Out of 15 possible points, respondents only realized 6.97 points in this area. That’s just 46.5% of the potential, signaling that Americans are underprepared to manage day-to-day expenses in retirement.

What this means: Many Americans have not fully transitioned from an earning mindset to a spending and sustaining mindset for retirement or created a detailed retirement budget that accounts for inflation, healthcare, or changes in income sources. Key gaps were noted in a heavy dependence on non-guaranteed income sources, and concern that working during retirement will be necessary, not optional. Survey responses also suggest that pre-retirees are adjusting their definition of retirement. For many, the idea of fully stepping away from work is no longer realistic or even desirable. Instead, they’re anticipating a retirement that includes part-time work, consulting, or phased retirement. Whether driven by financial pressure or a desire to stay engaged, this shift underscores the need for more flexible and personalized retirement planning.

Where Americans Are Doing Better: The Strongest Dimensions

Economic and Policy Confidence – 50.8% of Potential Achieved

Americans achieved 10.2 out of 20 possible points in this area, making it the highest among all categories, though still well below ideal.

What this means: There’s moderate confidence in navigating future economic and policy changes, but inflation remains a major concern. Notable insights included that half of the respondents expect Social Security to remain intact, many are using tax-advantaged retirement savings tools, but not fully, and widespread concern that inflation will erode retirement savings.

Emotional Well-being – 48.3% of Potential Achieved

Americans achieved 7.25 out of 15 points here, showing moderate preparedness for the emotional side of retirement.

What this means: While many respondents have strong social networks and plans for engaging in activities, others haven’t communicated their retirement plans with family, which can create stress down the line. Notable insights include positive scores in social support and hobbies and lower scores in family communication and transition planning.

“Retirement readiness is not just a personal issue, it’s a societal one,” said Peter de Silva. “When individuals are unprepared for retirement, the ripple effects are felt across families, workplaces, communities, and the broader economy. The IRRI was created to do more than just measure, it was designed to spark a national conversation, shine a light on the areas where Americans are falling short, and provide a roadmap to take action. With individuals facing longer lifespans, rising healthcare costs, and economic uncertainty, the IRRI will remind policymakers, employers, and financial institutions to work towards better solutions.”

Added Pete Littlejohn, President of IRALOGIX, “The good news is that retirement readiness isn’t out of reach, but it does require action. Americans can start by getting informed, setting clear goals, and using the tools available to them, from workplace retirement plans to personal savings and trusted financial advice. Preparation is power, and every step taken today helps build the confidence and security needed for tomorrow.”

Looking Ahead

IRALOGIX will redeploy the IRRI to track trends over time to elevate the national conversation around retirement readiness, paving the way for Americans to retire with dignity and security. 

Methodology

The IRALOGIX Retirement Readiness Index score is a data-driven measure of how prepared Americans are for retirement, expressed on a scale from 0 to 100. The score is derived from a nationally representative survey in which respondents answered 20 questions across five dimensions. Each question was rated on a 1-5 scale, with responses converted to a 0-100 score and weighted according to its importance within its category. The five dimensions were also weighted based on their overall contribution to retirement readiness, with financial preparedness emphasized the most. Each respondent’s weighted scores were totaled to generate an individual readiness score. The national Retirement Readiness score reflects the average of all responses. Risk zones in the IRRI are based on common indexing practices and are: High Risk (0-34.9), Moderate Risk (35.49.9), Caution Zone (50-64.9), Prepared (65-79.9), and Retirement Ready (80-100).

The survey was conducted in late March 2025 on behalf of IRALOGIX. Respondents were 62.67% male and 37.33% female, drawn from a national sample of pre-retirees.

To schedule an interview or for more information on the survey results or the index, don’t hesitate to get in touch with Scott Sunshine.

About IRALOGIX™

IRALOGIX is redefining the $14.5 trillion IRA marketplace through its industry-leading
technology-enabled, fully paperless, white-label IRA record-keeping and technology solutions.
The company’s proprietary technology solutions enable any financial institution to easily
customize its IRA offering and compete effectively in all segments of the IRA market, regardless
of account size. Through modular technology, institutional clients have the choice to use their
internal investment or advisory capabilities or select from key industry-leading providers.
IRALOGIX complements your market strategy, streamlines your IRA service options, and helps

you expand your business across all segments of the industry, profitably. For more information,
please visit www.iralogix.com.

PITTSBURGH, PA – April 2, 2025 – IRALOGIX, a leading provider of cloud-based, fully paperless IRA recordkeeping and technology solutions for the wealth management industry, has been named to FinTech Global’s prestigious 2025 WealthTech100 list. This is the third consecutive year the company has earned this honor.

The WealthTech100 recognizes companies tackling some of the biggest challenges in the investment industry, from the push for digital transformation to shifting client expectations and the effects of the intergenerational wealth transfer. The 2025 list was narrowed down from more than 1,200 candidates by a panel of industry experts, who selected 100 firms leading the way in innovation and impact.

IRALOGIX was selected for its work modernizing the retirement sector’s technology infrastructure, specifically for providing scalable, cloud-based technology that allows financial institutions to deliver IRA solutions without relying on dated systems.

“Being named to the WealthTech100 again is a strong validation of the work we’re doing to modernize a part of the industry that’s been slow to evolve,” said Peter J. de Silva, CEO of IRALOGIX. “Most retirement infrastructure still runs on legacy systems that limit flexibility and drive up costs.

Our platform replaces those inefficiencies with a scalable, compliant solution that’s future-focused, giving our partners the tools to deliver a client experience that reflects the best of modern financial technology.”

IRALOGIX’s technology enables banks, recordkeepers, and advisory firms to offer a wider range of IRA products with greater automation and flexibility. As many firms reevaluate their technology stacks, retirement services are becoming a growing area of focus, especially with new generations inheriting wealth and expecting modern digital experiences.

“This year’s selection process was more competitive than ever,” said FinTech Global director Richard Sachar. “With clients expecting hyper-personalized digital experiences, and global events continuing to test market resilience, firms can no longer rely on legacy systems or reputation alone. The 2025 WealthTech100 will help senior decision-makers in the investment industry identify the solution providers who can transform their businesses and help them stay ahead in this highly dynamic market.”

The full WealthTech100 list is available at www.WealthTech100.com.

California wildfires have destroyed lives, homes, and livelihoods. The extent of the destruction and costs will continue to expand. IRALOGIX extends our deepest sympathies to all who are affected and our gratitude to all who are sending aid and risking their lives to help.

It’s little consolation, but it may be helpful in the coming weeks to be aware of the retirement savings and tax relief available.

Qualified Disaster Recovery Distributions

The SECURE 2.0 Act made it easier for those affected by a federally declared disaster to access their retirement savings — with tax relief — in a disaster situation.

Those who qualify may

• Withdraw up to $22,000 from an IRA or an employer-sponsored retirement plan that allows for disaster distributions
  • If a plan does not offer this distribution trigger but a participant is otherwise eligible to take a distribution, the participant can still claim the tax relief when filing their tax return.
• Claim an exemption from the additional 10% tax on early distributions (pre-age 59½)
• Spread the taxation on the disaster distribution in equal parts over three tax years
• Repay any or all of the distribution amount to an IRA or retirement plan within three years of the day after you received the distribution (and reclaim any tax paid)*
• Have increased retirement plan loan limits up to $100,000 and a one-year extension on repayment

*Required minimum distributions (RMDs) and beneficiary payments may be included in a disaster distribution for tax purposes but may not be repaid to an IRA or retirement plan.

 

Individuals qualify for these special distributions if their principal residence is in a major disaster area (currently Los Angeles County), and they sustained an economic loss due to that disaster. An economic loss includes

• Being displaced from a principal residence

• Loss or damage to or destruction of real or personal property from fire, flooding, looting, vandalism, theft, wind, or other causes
• Lost income due to temporary or permanent layoff

 

A Qualified Disaster Recovery Distribution must be taken within 179 days after the disaster declaration. For Los Angeles County, the deadline is July 6, 2025.

Extended Deadlines for Tax Filings and IRA Contributions

The IRS has announced general tax relief for individuals that reside or have a business in Los Angeles County and are affected by wildfires and straight-line winds that began on January 7, 2025. These taxpayers now have until October 15, 2025, to file various federal tax returns and make tax payments that would otherwise have been due between January 7 and October 15, 2025:

• Individual income tax returns and payments normally due on April 15, 2025
• 2024 contributions to IRAs and health savings accounts for eligible taxpayers
• 2024 quarterly estimated income tax payments normally due on Jan. 15, 2025, and estimated tax payments normally due on April 15, June 16, and Sept. 15, 2025
• Quarterly payroll and excise tax returns normally due on Jan. 31, April 30 and July 31, 2025
• Calendar-year partnership and S corporation returns normally due on March 17, 2025
• Calendar-year corporation and fiduciary returns and payments normally due on April 15, 2025
• Calendar-year tax-exempt organization returns normally due on May 15, 2025

 

This same relief will be available to any other counties added to the disaster area by the Federal Emergency Management Agency (FEMA).

For More information

• Current list of major disaster declarations: gov/Disaster
• IRS disaster relief by date or state: Tax relief in disaster situations

• FAQs on disaster distributions: Disaster relief FAQs: Retirement plans and IRAs under the SECURE 2.0 Act of 2022
• Details on tax-related actions qualifying for relief: assistance and resources for individuals and businesses

• IRS disaster hotline: 866-562-5227

At IRALOGIX, we recognize that Individual Retirement Accounts (IRAs) are indispensable tools for securing a stable financial future. However, the effectiveness of an IRA program extends beyond selecting the right investments and features; it also involves compliance with an ever-changing regulatory landscape.

For financial institutions, maintaining a compliant IRA program is essential for meeting legal obligations and protecting clients’ financial futures. It is also critical for recognizing new opportunities. This requires a proactive approach to understanding and implementing rule changes affecting IRAs.

Financial advisors, too, must stay informed about rule updates and even potential future changes to be able to guide their clients effectively. By keeping abreast of the latest compliance requirements and tax law changes, advisors can help clients make informed decisions about their retirement savings and tax strategies.

IRALOGIX is committed to assisting both financial institutions and advisors navigate the complexities of IRA compliance and opportunities, helping to ensure a more secure financial future for their clients.

Regulatory Shifts: Stay on Top of IRA Rules

The regulatory environment surrounding IRAs is constantly in flux, in part because it is tied to the tax code. Congress enacts new laws to enhance retirement savings opportunities for more workers but also can change the rules to offset the tax “cost” of these enhancements or other law changes. Regulatory agencies, like the IRS, create operational requirements to help institutions implement the changes and to enforce the rules. To provide high-quality services and avoid penalties, financial institutions and advisors must understand the changes affecting IRAs and integrate them into their forms, procedures, technology, client communications, and staff education.

Overview of Recent Regulatory Changes

Recent law and regulatory changes affecting IRAs have introduced new requirements and options that impact clients’ savings and tax strategies. Here is a partial list of changes that took effect recently and coming up:

Effective beginning in 2023

• Increased RMD age (age 73)
• Withdrawals and repayments for the terminally ill
• Roth contributions for SEP and SIMPLE IRA plans (IRS guidance needed)
• Withdrawals and repayments for qualified disaster victims
• Withholding rules and new Form W-4R required

Effective beginning in 2024

• Increased dollar amount for automatic rollovers ($7,000)
• Rollovers of 529 assets to Roth IRAs
• Additional nonelective contributions allowed for SIMPLE IRA plans
• IRA catch-up contributions subject to COLAs
• Automatic increases to employee contribution limits for SIMPLE IRA plan employers with 25 or fewer employees
• Optional increases to employee and employer contribution limits for SIMPLE IRA plan employers with 26-100 employees
• Withdrawals and repayments for domestic violence victims
• Withdrawals and repayments for personal emergency expenses

Coming in 2025

• New RMD and beneficiary regulations in effect
• Increased catch-up contributions for SIMPLE IRA plan employees ages 60–63

Coming in 2026

• IRA amendments/restatements (pending new IRS documents and guidance)

Coming in 2027

• IRS Saver’s Match deposits to IRAs

These changes are in addition to the annual updates the IRS makes, which also must be incorporated into all aspects of IRA administration:

• Increased contribution limits and income thresholds for IRA tax benefits and IRA-based retirement plans (COLAs)
• Updates to withholding form and taxpayer information
• Changes to Form 1099-R and 5498 reporting

Implications for Financial Institutions

Financial institutions managing their own IRA programs face the ongoing challenges of staying compliant with evolving laws and regulations. In addition to implementing updates and changes into their operations, institutions must also accurately field questions from account holders to avoid miscommunication that could lead to unexpected taxes and penalties. Ongoing efforts to make system updates and train staff can be a significant burden. But noncompliance can lead to steep penalties for financial institutions.

Implications for Financial Advisors and Their Clients

Regulatory shifts and tax updates significantly impact how financial advisors guide retirement savers and wealth management clients, too. Advisors must stay informed to maintain credibility and provide effective retirement strategies. For example, the changes in contribution limits, Roth options, and RMDs can directly affect the strategies advisors recommend to clients. Non-compliance can lead to penalties and unexpected taxes for clients, undermining their financial stability. Moreover, it could harm an advisor’s reputation. Advisors may want to re-evaluate client strategies each year specifically considering IRA rule changes.

Maintain IRA Compliance with IRALOGIX

Incorporating technology into compliance management in the right way is essential in today’s regulatory environment. With an IRA program on IRALOGIX’s platform, financial institutions can offload the burden of ensuring that law and regulatory changes are seamlessly implemented along with annual updates. By taking on the compliance responsibilities of recordkeeping and administering IRA programs, IRALOGIX enables our Partner institutions to focus on growing their businesses and serving their clients. Contact us for more information on our IRA platform and compliance capabilities.

To help our Partner institutions and advisors stay informed about developments in the retirement savings market and understand how those changes can best be positioned for program growth, we provide updates, insights, and tips. We also post articles on legislative and regulatory developments on our website and LinkedIn page.

IRALOGIX, a leading retirement industry fintech provider, today announced that Pete Littlejohn has been named President of the company, effective immediately.

“Since joining IRALOGIX, I have come to highly value Pete’s exceptional judgment, insightful perspectives, and extensive expertise in the retirement marketplace,” said Peter de Silva, CEO of IRALOGIX. “Pete is not only a trusted partner but also an extraordinary leader who commands respect and admiration both within our organization and across the financial services industry. His unwavering commitment to serving our partners, account holders, and associates perfectly aligns with our mission, and I am thrilled to continue working alongside him in his new position as we bring our vision of limitless financial opportunities to life.”

As President and one of IRALOGIX’s co-founders, Pete will continue to lead the company’s sales and relationship management teams while driving forward key strategic goals and initiatives. In this pivotal role, he will play a critical part in guiding IRALOGIX through its next phase of growth, ensuring the company stays at the forefront of innovation in the IRA marketplace.

“Witnessing the growth of IRALOGIX since the days of its founding has been an incredible journey,” said Pete Littlejohn. “I’m honored to step into this role and to continue building on our momentum as we transform the IRA marketplace. I look forward to collaborating with our exceptional team, partners, and clients to drive innovation, deliver unparalleled value, and advance our mission of making retirement a viable option for all.”