According to Escalent’s 2025 Retirement Planscape study, more than half of plan sponsors rank cybersecurity as their No. 1 “plan fear,” ahead of poor investment performance (45%) and insufficient participant savings (43%). That concern is not without evidence. High-profile breaches such as the recent attack on a leading recordkeeper affecting more than 1,000 participants and traced to a third-party client management cloud application demonstrate how a single weak point can compromise participant data and disrupt operations.
In the past year alone, 7% of all plan sponsors (and one in 10 mega plans) reported a 401(k)-related data breach.
The Department of Labor’s website provides the Employee Benefits Security Administration’s (EBSA’s) best practices for retirement plan cybersecurity programs. EBSA states that the guidance is “for use by recordkeepers and other service providers responsible for plan-related IT systems and data, and for plan fiduciaries making prudent decisions on the service providers they should hire.” The recommendations cover 12 areas of retirement plan cybersecurity.
Have a formal, well-documented cybersecurity program.
Conduct prudent annual risk assessments.
Have a reliable annual third-party audit of security controls.
Clearly define and assign information security roles and responsibilities.
Have strong access control procedures.
Ensure that any assets or data stored in a cloud or managed by a third-party service provider are subject to appropriate security reviews and independent security assessments.
Implement and manage a secure system development life cycle (SDLC) program.
Have an effective business resiliency program addressing business continuity, disaster recovery, and incident response.
Encrypt sensitive data stored and in transit.
Implement strong technical controls in accordance with best security practices.
Appropriately respond to any past cybersecurity incidents.
Participants also can play a role by remaining vigilant for irregularities and reporting them through appropriate channels. Cyberattacks are growing more sophisticated, with AI and other advancements enabling criminals to mimic legitimate users and exploit weak points in vendor networks. Cybersecurity is and will remain a plan sponsor concern for the foreseeable future.
Advisor Support is Key to Driving Confidence and Outcomes Among Younger Participants
Access to an advisor tends to improve retirement confidence, according to a recent survey by the Employee Benefit Research Institute (EBRI). The Retirement Confidence Survey found that 83% of workers with advisory access feel confident about retirement readiness, compared with just 53% of those without. But is that only because those with advisors are more likely to have also accrued greater wealth over time, or will it also hold true for younger workers with smaller portfolios?
A Kiplinger deep dive into the EBRI data suggests the advisory confidence “boost” is actually greatest among lower-balance savers. In other words, professional financial guidance may have its most meaningful impact on younger workers in the early stages of their wealth-building journey.
More than three in four Gen Z employees, those born from 1997 to 2012, are saving for retirement through employer-sponsored retirement plans and/or outside the workplace. Automatic enrollment trends play a role here. But prevailing generational sentiments have a large impact on behaviors too: nearly 6 in 10 Gen Z and Millennial 401(k) participants expect their personal accounts to be their primary income source in retirement, while only 5% anticipate relying mainly on Social Security.
But saving—and saving enough—aren’t necessarily one and the same. And unfortunately, those falling behind the curve on retirement readiness may not even realize it’s happening.
Meanwhile, many younger Americans are embracing the growing trend of “soft saving,” favoring quality of life today rather than delaying gratification and saving for future goals, such as retirement. Faced with heavy student debt, economic uncertainly and financial milestones such as homeownership feeling out of reach, some younger workers are choosing to prioritize travel, social experiences and their mental health. Living in the moment, however, may come at a substantial cost later on in terms of both mental well-being and quality of life in retirement if savings are inadequate.
This is where an experienced advisor can make a significant impact on the trajectory of a young participant. Part of the mental health “boost” of soft saving may come from the avoidance of facing the realities and challenges of planning for a secure retirement. But avoidance will only provide relief for so long, and delays in retirement planning can be costly and difficult to recover from. By providing guidance, perspective and personalized, data-driven strategies, advisors can help younger workers balance enjoying life today while preparing for tomorrow.
OMB Poised to Review Proposed Rule on Paper Statements and E-disclosures
The regulatory follow-through on SECURE 2.0’s paper-statement mandate is now entering its next stage. The 2022 law includes provisions affecting how benefit statements must be delivered. In general, defined contribution (DC) plans will be required to furnish participants with at least one paper benefit statement each year, unless they affirmatively elect electronic delivery, for plan years beginning after December 31, 2025. An additional provision directs the Department of Labor (DOL) to update its electronic-delivery regulations so that participants and beneficiaries who first become eligible after that date receive a one-time paper notice before their required statements and related disclosures can be furnished electronically.
On September 30, 2025, the DOL’s Employee Benefits Security Administration (EBSA) agency submitted a proposed rule, “Requirement to Provide Paper Statements in Certain Cases—Amendments to Electronic Disclosure Safe Harbors,” to the Office of Management and Budget (OMB). The proposal would update 29 CFR 2520.104b-1(c), part of the DOL’s regulation governing the timing and method for furnishing ERISA disclosures, and 29 CFR 2520.104b-31, the DOL’s electronic-delivery framework often referred to as the “notice-and-access” safe harbor.
The OMB announcement signals that detailed rules are forthcoming on matters that may include formatting, timing and content requirements, delivery standards, and participant elections for statements. The proposed rule follows EBSA’s August 2023 Request for Information, in which the agency sought public input on SECURE 2.0’s various reporting and disclosure mandates.
Once the OMB completes its review, the proposal will be released to the public as a Notice of Proposed Rulemaking, which will subsequently open a formal comment period. OMB typically has up to 90 days (which may be extended) to review a proposal and decide whether to clear it for publication or send it back for revision, though there is no set minimum time frame for review. Plan sponsors may want to monitor the rule’s progress as it moves through the federal rulemaking procedures and the industry and public comment period.
Five Retirement Plan Benefits You May Not Know About
When you think of the benefits of your retirement plan, tax-deferred savings and matching contributions are probably top of mind. But there’s more to your workplace retirement plan than meets the eye. Beyond the basics, retirement plans can come with a number of lesser-known advantages that can help you protect, grow and pass on your savings more efficiently. Here are five perks you might not even realize you have.
Dollar cost averaging: Your retirement contributions go into your account on a regular schedule, regardless of fluctuations in the market. This means you buy more shares when prices are low and fewer when prices are high, evening out your average cost per share over time. This is known as “dollar cost averaging.” It’s a simple, steady approach that takes the guesswork and emotion out of investing, helping you stay consistent through market ups and downs.
Greater creditor protection: Retirement balances are generally shielded from commercial creditors, adding an extra layer of security for your nest egg. This protection is built into federal law, offering a safeguard most personal investment accounts can’t match. Even if you face a lawsuit or bankruptcy, your retirement savings are generally off-limits to most creditors. While certain exceptions can apply — such as for federal income taxes owed to the IRS — this layer of protection can help keep more of your hard-earned savings dedicated to your financial future.
Easier estate planning: You can name beneficiaries directly on your retirement account, helping your savings transfer smoothly without probate delays. By naming your beneficiaries, you can help ensure that your savings pass directly to your chosen heirs, avoiding the time, expense, and complications of probate. Regularly reviewing and updating your beneficiary designations after major life events, such as marriage, divorce, or the birth of a child, can help keep your estate plan aligned with your wishes.
Professional oversight: Retirement plans have designated fiduciaries that are responsible for reviewing fund performance, keeping fees reasonable, and ensuring investment options meet the plan’s standards, giving you the benefit of built-in due diligence and expert oversight. These fiduciaries are legally obligated to act in your best interest, quietly working behind the scenes for your benefit.
Potential fee savings: Many larger plans offer institutional share classes with lower fees. While the difference may seem small, perhaps just a few tenths of a percent, those cost savings can add up to tens of thousands of extra dollars over decades of compounding. Lower expenses mean a higher percentage of each contribution stays invested, allowing more of your savings to keep working for you.
By understanding and taking advantage of these benefits, you can help make the most of your plan and strengthen your retirement readiness. A little knowledge can go a long way toward securing your financial future.
Please visit your retirement plan provider’s website or speak with a financial professional to learn more and discuss your options.
Feedback? Contact Deb Lander, CFP®, CPFA, QKA, Director, Retirement Plan Services.
Content sourced from Retirement Plan Advisory Group (RPAG). This material was created to provide accurate and reliable information on the subjects covered but should not be regarded as a complete analysis of these subjects. It is not intended to provide specific legal, tax or other professional advice. The services of an appropriate professional should be sought regarding your individual situation.
The material is not a solicitation or an offer to buy or sell any security or other financial instrument or to participate in any trading strategy. Any opinions provided herein should not be relied upon for investment decisions.
Investment advisory services offered through RKL Wealth Management LLC. Consulting and tax services offered through RKL LLP. RKL Wealth Management LLC is a subsidiary of RKL LLP.
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