Speaking to the Illinois News Bureau, Professor Richard Kaplan explained that new regulations requiring retirement plans provide estimates of monthly income upon retirement may cause shock to some workers.

“People might see that they have, say, $300,000 in their retirement account and think they’re all set. But this amount might produce a monthly income of only $750," Kaplan said.

The Setting Every Community Up for Retirement Enhancement (SECURE) Act was enacted in December 2019 and became effective in the second quarter of 2022. The idea behind the act is to remove the illusion of wealth that a lump sum amount might provide by instead sharing retirement savings in terms more accessible to workers, like monthly income. The act was passed to help workers modify their savings behavior before they retire to achieve a more secure retirement, but they are not without controversy.

Read the full article and more of Kaplan's insight at the Illinois News Bureau.