Headlines about "Ret plans - info for employees"

Gathered from the web by the editors at BenefitsLink.com.
Prepare for a Gruesome Retirement, According to 2008 Retirement Confidence Survey
Excerpt: "According to the table above, if you are a typical 40-year-old working American, there's a nearly 50% chance that your savings and investments total less than $25,000. Let's be generous and assume that you have $20,000 socked away and that you have about 25 to 30 years until you retire. How will that money grow for you? Well, here's what happens . . . ." (Motley Fool)

The Incredible Shrinking Nest Egg
Excerpt: "For years, stock investors have been led to expect average annual returns of 8% to 10%. Similarly, many people have assumed that their homes would appreciate by roughly 10% a year. Both assumptions, though, rest on two decades of outsize returns -- returns that were inflated by low interest rates that fueled bubbles in the values of stocks and real estate." (USA TODAY)

Women Owe It to Themselves to Save for Retirement
Excerpt: "According to the Employee Benefits Research Institute, 25 percent of women have no retirement savings. Women also are less likely than men to qualify for a pension. Because women tend to live longer, they also tend to have a longer retirement than men. Up to 90 percent of women will spend at least part of that retirement alone, either because they never marry, they divorce or they outlive their spouses." (STLtoday.com)

Let's Make It Cool to Save
Excerpt: "A coalition of consumer advocates, public policy groups and academics wants to attack our country's dependence on debt by creating a national campaign much like the one used to curb smoking." (Michelle Singletary in the Washington Post; free registration required)

Retirement to Costa Rica? Retirement Bliss Can Be Dear in Developing World
Excerpt: "Health care is another revelation. What would it cost for non-citizens to purchase a health policy in Costa Rica? Now you are getting into the heart of how much it costs to retire to a developing country. Unless you are a citizen of Costa Rica, you may need to buy an overseas policy issued by an insurer in your home country. For U.S. citizens, Medicare generally doesn't cover treatment in foreign countries, so you may have to come back for medical care." (John Wasik on Bloomberg.com)

Study Reveals Pre-Retirement Attitudes Reinforce Inadequate Preparation for Retirement
Excerpt: "The survey evaluated a cross-section of Americans on their awareness of potential financial risks in retirement and how the awareness impacts the management of their finances before and during retirement." (Wolters Kluwer)

[Opinion] Letter to 401(k) Retirement Plan Sponsors and Vendors: You're Failing (PDF)
Excerpt: "In 2006, 87% of plan sponsors said they do not believe most employees are/will be financially prepared for retirement. (Deloitte/IFEBP) Just 13% said half might be ok. If that's not a sign of failure, what is?" (Dennis Ackley)

Why Women Are at Greater Financial Risk in Retirement and How Annuities Can Help (PDF)
31 pages. Excerpt: "The Female Factor offers an analysis of women's economic position in retirement, laying out the factors that determine whether they will achieve financial security in their 'golden years.' This recently-updated report discusses lifetime annuities as an important retirement income security tool for women. When combined with Social Security and other retirement income, an annuity can help cover basic living expenses while addressing the risk of outliving assets." (Americans for Secure Retirement)

Hispanic Americans and Retirement (PDF)
Excerpt: "While the following pages reveal the retirement attitudes and behaviors of Hispanic Americans, it is important to recognize that for some, the English language barrier is a cultural obstacle that has had a significant impact on their financial ambitions. Success -- as measured by earned income, financial assessment, and confidence in meeting retirement goals -- is greater among Hispanics who live in predominantly English-speaking households." (Prudential Retirement)

Financial Experience & Behaviors Among Women
16 pages. Excerpt: "[This report is the fifth in a series]. Looking back at the data, it appears that there has been some progress in women's overall financial knowledge and confidence, they are more involved in these decisions and, in fact, some women are taking the leading role for their household. This year's study is designed to give a deeper look at some of the generational differences among women as it relates to their concerns, goals, and progress." (Prudential Retirement)

2008 Investment Company Fact Book
Excerpt: "The 2008 Investment Company Fact Book provides an entry point to our extensive body of research and statistics on retirement savings, as well as statistics on, and analysis of, all types of registered investment companies and their investors, collectively referred to as funds and fund investors." (Investment Company Institute)

Consolidating Retirement Funds
Excerpt: "Consolidating multiple retirement plans can help simplify life and gain control over qualified plan assets. For example, consolidating IRA and 401(k) assets with one institution may save both time and money. Assets can be transferred from one IRA provider to another without taxes or penalties." (The Republican Eagle)

Predictive Factors for Retirement Timing
Excerpt: "The factors affecting the retirement behavior of U.S. workers deserve renewed research attention and deeper understanding given recent developments such as the shift to defined contribution plans and corresponding decline in defined benefit pension plans, ongoing and proposed Social Security reforms, the recent volatility in the stock and housing markets, and exploding health care costs for retirees and workers. This paper investigates the impact of factors such as health insurance coverage, retirement plan types and public policies on the retirement timing of older workers." (Watson Wyatt Worldwide; free registration required to access paper)

Understanding Changes During Retirement: Results of Two Studies Webcast, April 2008 (PDF)
55 pages. (Society of Actuaries)

Your 401(k) Could Put You on Track to Millions
Excerpt: "Becoming a millionaire may sound impossible. Millionaire may strike you as a term that's meant for other people, not you. But that's just not true." (Success Magazine)

Being There, as an Advisor, for the Five Phases of Retirement
Excerpt: "Retirement is a moving target that defies a singular definition because it will be different for each client. However, planning for this event occurs continuously throughout the client's financial life-cycle and usually has five phases. It's your job as an advisor to make sure that you are there -- and active -- during all of these phases." (Advisor Today)

Report of the Working Group on Financial Literacy of Plan Participants and the Role of the Employer
Excerpt: "The 2007 ERISA Advisory Council formed a Working Group on Financial Literacy of Plan Participants (hereinafter referred to as the 'Working Group') to study numerous issues in increasing the financial decision-making skills of plan participants. The desired result of the Working Group was to discover and present matters that would enhance the ability of plan participants to manage assets throughout their financial life cycle." (U.S. Employee Benefits Security Administration)

May 5 Was 'Retirement Plan Selection Day' for W.Va. School Employees
Excerpt: "Members of the state's Teachers' Defined Contribution Retirement System have been receiving information booklets and personal retirement reports to estimate retirement benefits under the plan, as well as information on the State Teachers Retirement System. This information has been provided to members so they can make an informed choice on continuing with the Teachers' Defined Contribution (TDC) or requesting a transfer to the Teacher's Retirement Systsem." (The Herald-Dispatch)

Is Your Pension Secure? Probably, But It Could Be Smaller Than You Expect
Excerpt: "Even with . . . safeguards, your expectations for retirement income can still be upset mightily. Here's what can go wrong if you work in the private sector, and how you can protect yourself. Also check our steps you can take to protect your retirement income." (ConsumerReports.org)

Ten Techniques for Communicating with Employees About Retirement Plans
Excerpt: "Our 10 proven techniques for communicating about retirement plans are broken into three categories: getting better attendance, understanding the concepts and taking action." (Employee Benefit News; free registration required)

Safeguard Your Retirement in Hard Times
Excerpt: "When your income is not covering all your expenses, it can be tempting to simply cut out the expense of saving for retirement -- or tap the savings in your 401(k) or IRA to pay the bills. But there will always be negative consequences to those actions. If you simply stop saving, you'll almost certainly reduce the amount of money available to you when you decide to retire, and you may even have to postpone your retirement." (BusinessWeek)

How Will Low-Income Boomers Cope with Retirement?
Excerpt: "The report finds that, because of long-term projected growth in real earnings, low-income boomers will have higher real incomes in retirement than their predecessors and a lower incidence of poverty. Typical leading boomers will have higher income replacement rates at retirement and will be more likely to have enough income to replace 75 percent of their earnings than previous generations of retirees. However, typical trailing boomers will have much lower replacement rates in retirement than leading boomers (although about the same as earlier retirees) and will be less likely to have enough income to replace 75 percent of their earnings than leading boomers." (AARP)

Study Shows Tougher Retirement Road for Middle Class
Excerpt: "Despite recent academic studies suggesting the vast majority of Americans will have adequate retirement income, BGI officials found a broad swath of American employees face significant cuts in their expected retirement income once adjustments for health care and the value of home equity are made." (Workforce Management; free registration required)

Author Roger Lowenstein Says Aging Boomers Plus Paltry Savings Make for a Coming Crisis
Excerpt: "In his latest book, While America Aged: How Pension Debts Ruined General Motors, Stopped the NYC Subways, Bankrupted San Diego and Loom as the Next Financial Crisis, journalist Roger Lowenstein explores America's deeply flawed retirement system. He talked with U.S. News about solving this major economic conundrum." (U.S. News & World Report)

The Future Shock of Retirement - Picture Bleaker Than Suggested by Recent Research (PDF)
24 pages. Excerpt: "Specifically, the surprisingly benign outlook for American retirement stability depicted in some recent academic literature is predicated on an assumption that current costs and benefits remain stable in the future. We find this assumption unrealistic based on our survey of the state of American retirement as represented by government programs, corporate pensions, and personal savings. [This article is forthcoming in the Fall 2008 issue of The Journal of Investing, printed here with permission from Institutional Investor Journals.]" (Barclays Global Investing)

Who Prefers Annuities? Observations About Retirement Decisions
Excerpt: "To find out [why most people do not choose annuities], Watson Wyatt Worldwide asked a national panel of older workers and recent retirees about their payout and risk preferences, retirement decisions and related issues. Our observations are based on the 2007 U.S. Surveys of Older Employees' and Retirees' Attitudes Toward Lump Sum and Annuity Distributions From Retirement Plans." (Watson Wyatt Worldwide)

Piercing the Monte Carlo Mystique in Retirement Income Planning (PDF)
6 pages. Excerpt: "This paper explains that the inherent, conceptual problems with Monte Carlo and other stochastic models that presuppose events are random, future probablilities can be known, and probablilities of success can be calculated, are not only inadequate for retirement income planning, but are possibly dangerous. It goes on to show that alternative approaches that are based on risk reduction and contingency planning are far more appropriate for this market." (Still River Retirement Planning Software, Inc.)

[Opinion] Financial Literacy and Post-Retirement Risks: An Actuary Speaks Out (PDF)
3 pages. Excerpt: "I hope that the readers of this article will work to bring stakeholders together to improve the post-retirement system. I would love to see workers improve their awareness of the variability of life spans and gain a general understanding of the options for timing of retirement and the implications." (Anna M. Rappaport via Contingencies)

5 Mistakes That Will Sink Your Retirement
Excerpt: "If you're getting close to retirement, or are already retired, the right asset allocation is more important than ever. Sagging markets, combined with pulling funds out for living expenses, can really wreak havoc on your portfolio. At age 65, it's probably smart to put half your holdings in stocks or equity funds and the rest in cash and bonds, then slowly reduce equities to a third of your portfolio by the time you are in your 80s." (U.S. News & World Report)

[Guidance Overview] Arthur Andersen Loses $25 Million in Insurance Coverage
Excerpt: "One-time accounting giant Arthur Andersen cannot recover $25 million in insurance coverage for its freelance settlement of $231 million with retirees who lost pensions in the firm's demise, a federal appeals court has ruled. The 7th U.S. Circuit Court of Appeals decision puts companies on notice that they cannot assume an insurer will consent to settlements, or that insurance policies covering fiduciary breaches can be stretched to cover a contract dispute." (Law.com)

Barclays' Retirement Forecast - Gloomy
Excerpt: "After revisiting the data from which many economists extracted a relatively benign retirement forecast for most Americans, Barclays Global Investors has come up with a grimmer prediction. 'Half of Americans will be one-quarter less well off in retirement than they realize,' said Matthew Scanlan, managing director and head of Americas Institutional Business at San Francisco-based Barclays Global Investors." (Investment News; free registration required)

Why You Shouldn't Retire Early
Excerpt: "Retiring early will also limit your Social Security check and pension benefits. You can visit this calculator at the Social Security website to estimate your benefit -- and how it changes depending on when you retire. Delaying your retirement a few years might make a material difference in the money you have available for all of those daydreams." (The Motley Fool)

Bank of America Research Reveals the Affluent Are Ready for Retirement
Excerpt: "Many affluent Americans are addressing economic uncertainty by modifying expenses in the short term, and maintaining retirement investing for the long term, according to new research from Bank of America." (Investment Advisor)

Multicultural Marketing of Employee Benefits (PDF)
12 pages. Excerpt: "This article examines how cultural studies that explore the way different demographic groups tend to approach issues of health, wealth, and career have important implications for the design, development, and delivery of HR products and services." (Hewitt Associates)

Savvy Spending Safeguards Savings
Excerpt: "With recession fears mounting, more Americans are cutting back on spending in order to save money. Spending wisely or not spending as much ranks second as a savings strategy, only behind interest-bearing accounts, in a new poll from the American Institute of Certified Public Accountants." (Employee Benefit Adviser; free registration required)

Pitfalls of Working Past Retirement Age
Excerpt: "[W]orkers with defined-benefit pensions and those who already have tapped Social Security benefits might not realize is that there are significant financial disincentives that make working into retirement age a tricky proposition." (The Wall Street Journal)

Most Employers Opt for Retirement Planning Initiatives, According to Survey
Excerpt: "Three-quarters of employers in a recent survey said they offer retirement or financial planning to their employees or savings plan participants. A news release from the International Foundation of Employee Benefit Plans said its survey was designed to find out about the types and formats of financial education as well as their availability and eligibility requirements." (PLANSPONSOR.com; free registration required)

Women Have Retirement Funding Fears
Excerpt: "A new survey finds that 32% of women and/or their partners are counting on a company pension for retirement income, particularly Baby Boomer women (42%). A news release said the survey of more than 3,000 women sponsored by Meredith Corporation and NBC Universal also found 52% of women and/or their partners are counting on personal savings/investments for their retirement. Three quarters of respondents said they are concerned about their ability save enough for retirement, while 77% said they are concerned about the future of Social Security." (PLANSPONSOR.com; free registration required)

The 4% Rule - At What Price?
Excerpt: "The 4% rule is the advice most often given to retirees for managing spending and investing. This rule and its variants finance a constant, non-volatile spending plan using a risky, volatile investment strategy. As a result, retirees accumulate unspent surpluses when markets outperform and face spending shortfalls when markets underperform. The previous work on this subject has focused on the probability of short falls and optimal portfolio mixes. We will focus on the rule's inefficiencies¿the price paid for funding its unspent surpluses and the overpayments made to purchase its spending policy." (Social Science Research Network)

Table on Pension Sponsorship and Participation, 1979-2006
Microsoft Excel Worksheet. (Center for Retirement Research at Boston College)

[Guidance Overview] ERISA - Erroneous Pension Estimates
Excerpt: "Where a plaintiff brought suit under the Employee Retirement Income Security Act, arguing that the defendant employer must pay him the amount of the erroneous benefit estimates he received before he left the defendant's employ instead of the lesser amount he was entitled to under the defendant's employee benefit plan, a judgment for the defendant must be affirmed because of the plaintiff's failure to show any fiduciary breach." (Lawyers Weekly, Inc.)

Boomers Will Face a New/Old Risk: That They May Outlive Their Money. What's an Advisor to Do?
Excerpt: "This year, the first wave of baby boomers reaches 62, the age when they are first eligible for Social Security retirement benefits. This 78 million-strong cohort will define and re-define retirement and what it means to grow old. As they do, they will raise an age-old issue with new-age ramifications: outliving one's wealth. Called longevity risk, this issue adds another facet to the already loaded definition of risk. For boomers, it's encapsulated in the question, 'Will we run out of income before we run out of steam?'" (Investment Advisor)

More Than 20 Major Minnesota Employers Pledge to Help Employees Improve Retirement Savings
Excerpt: "The employer-led initiative is a response to troubling trends that, unless reversed, could spell disaster for the state's economic future. Less than half of Minnesota workers participate in an employer-sponsored retirement savings plan, including more than half a million full-time workers in the Twin Cities metro area . . . ." (PRNewswire via COMTEX via FOX News Network, LLC)

[Opinion] Trust Is an Essential, But Sometimes Missing, Element in Retirement Plans
Excerpt: "Employees expect clear, complete and honest communication. When they don't get it, trust weakens and commitment suffers - and so may profits. Employees who don't trust 401(k)s, 403(b)s, or their employer aren't likely to take full advantage of the plan, even with automatic enrollment. Unfortunately, the retail approach to selling is sometimes used in 401(k)s and 403(b)s." (Employee Benefit News; free registration required)

MetLife Offers Retirement Tips Based on Family Situation
Excerpt: "Responding to findings of its recent Family Matters study, the MetLife Mature Market Institute has made available tips on making the right choices for retirement based on family situations." (PLANSPONSOR.com; free registration required)

Average Investor Lives Somewhere Between 'Ignorance Is Bliss' and 'Knowledge Is Power'
Excerpt: "[C]onsider two recent and very different studies of investors, one concerning knowledge and its ability to provide and create control, and the other about surrendering control, presumably due to a lack of knowledge. When juxtaposed, the two studies make for an intriguing landscape, giving investors food for thought about just what position they want to assume on the financial horizon." (MarketWatch)

Life Spans Decline in Some U.S. Areas
Excerpt: "Researchers at the Harvard School of Public Health and the University of Washington found that 4% of the male population and 19% of the female population experienced either declines or stagnation in their life expectancy in the '80s and '90s. The paper appears in the online non-profit journal The Public Library of Science.' (USA TODAY)

Making Your Money Last as Long as You Live
Excerpt: "EVEN for people who have built up a decent nest egg, deciding how to use it is one of the demands of early retirement. The good life may be within reach, but the financial logistics still require careful attention." (The New York Times; free registration required)

Programs for Retaining Older Workers Are Slowly Emerging
Excerpt: "At Pacific Gas & Electric in San Francisco, 42 percent of its workers -- and 50 percent of managers -- are eligible to retire. The company has been interviewing these people about their jobs and posting the information on an intranet database. It is pairing would-be supervisors with older ones. It may soon film experienced workers as they do their jobs, and post the films on the intranet. 'And we're taking a fresh look at our pension calculator to see if we can make it financially worthwhile for older workers to ratchet down hours rather than just leave,' said Van Ton-Quinlivan, director for work-force strategy and diversity." (The New York Times; free registration required)

You Can Panic in a Recession, or You Can Strategize
Excerpt: "WE all know the drill: invest for the long term, especially when planning for retirement. Don't panic. Even if the stock market is tumbling and the country is plunging into a recession, stick to your basic strategy. Easy to say but not so easy to follow. And many experts acknowledge that you don't have to follow your plan 100 percent. In certain circumstances, investors may be better off with stabler alternatives. This could also be a good time to take early retirement, cash in some holdings for the tax plays or find deals in -- yes -- real estate. Financial decisions depend mostly on your age and tolerance for risk . . . ." (The New York Times; free registration required)

Researchers Say Post-Retirement Spending Drop a Myth
Excerpt: "A newly released research study casts doubt on the traditional notion that calculations of a person's retirement nest egg should take into account a post-retirement spending dropoff." (PLANSPONSOR.com; free registration required)

Plan Participants Want Help, But Won't Pay, Study Finds
Excerpt: "Close to half of plan participants still turn to friends and family for advice about their retirement plan assets, according to a new report. The analysis, by Spectrem Group, a Chicago-based research and consulting firm, showed that plan participants are interested in advice, but don't want to pay for it." (Investment News; free registration required)

Avoiding the Retirement Scramble of Distinct Phases and Life–Altering Changes During Retirement
Excerpt: "This article presents highlights from a Roundtable Discussion showcasing recent SOA research that was held at the 2008 Annual Conference of the National Academy of Social Insurance (NASI). . . . A number of research projects have explored changes during retirement and provide insights about the causes, dynamics and impact of those changes." (Society of Actuaries)

How to Help Employees Save for Retirement
Excerpt: "A retirement plan is less expensive than health care coverage and can engender a lot of good will among employees. 'The responsibility for seeing that the American public retires with some sense of security is on the shoulders of small businesses,' . . . ." (TheStreet.com)

[Guidance Overview] Terminated Employees Can Be Toxic to the Health of Your Plan
Excerpt: "The [LaRue] ruling demonstrates once more why plan advisors should act quickly to move terminated employees off of their plans. Ted Benna, known as the 'father of the 401(k),' and a frequent advisor to Congress and regulatory authorities, has long warned about the fiduciary requirement to provide sufficient information to make informed investment decisions." (401kExchange, Inc.)

PPA Increases Need to Educate Workers About 401(k) Assets in Company Stock
Excerpt: "Participants whose plans match in company stock will want investment information with which they can conclude that the company stock, as a 401(k) asset, is a good investment. Some employers are going further, though, saying, 'Maybe we will offer company stock as 401(k) investment option, but we will not match in company stock,'' says Leslie Smith, senior vice president of Aon's retirement practice. Under PPA, employees can direct company stock as a 401(k) match as they like." (Employee Benefit News; free registration required)

[Opinion] Testimony by Dallas Salisbury at Hearing on 'Financial Literacy and Education: The Effectiveness of Initiatives' (PDF)
5 pages. Excerpt: "There are programs and tools available today that would provide the basis for sound individual financial decision-making. But the reality is that even when they are made available most individuals do not take advantage of them. Getting individuals to do so requires a constant drumbeat of effort. As already noted, given the constant noise to borrow and spend, current savings initiatives are actually amazingly successful, as they are 'outspent' by thousands of dollars to one by those urging people to borrow and spend." (Employee Benefit Research Institute)

The Retirement Consumption Puzzle: Actual Spending Change in Panel Data
Excerpt: "The simple one-good model of life-cycle consumption requires that consumption be continuous over retirement; yet prior research based on partial measures of consumption or on synthetic panels indicates that spending drops at retirement, a result that has been called the retirement-consumption puzzle. Using panel data on total spending, nondurable spending and food spending, we find that spending declines at small rates over retirement, at rates that could be explained by mechanisms such as the cessation of work-related expenses, unexpected retirement due to a health shock or by the substitution of time for spending." (National Bureau of Economic Research; paid subscription or individual purchase required to retrieve fulltext)

Best Practices in Employee Campaigns: Helping Participants Prepare for Retirement (PDF)
7 pages. Excerpt: "One of the most effective communication tools is a targeted participant campaign. A campaign is a direct communication to a participant that asks for a specific, measurable response. Effective campaigns feature a distinct blend of art, science, imagery and text as well as a media mix that can rapidly evolve with technology. They can be conducted in person, electronically, or by mail and are most successful when they address specific behaviors and complement people's natural tendencies." (Massachusetts Mutual Life Insurance Company)

Generation X Glum on Retirement Prospects, According to Survey
Excerpt: "Baby boomers say they are worried about achieving a comfortable retirement, but a new study suggests Generation X is even more pessimistic. More than two-thirds of Americans aged 27 to 42 don't think they will ever be able to stop working, according to a survey published jointly on Monday by Scottrade and BetterInvesting." (Reuters via The New York Times; free registration required)

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