Headlines about "Ret plans - info for employees"

Gathered from the web by the editors at BenefitsLink.com.
How Did the Recession of 2007-2009 Affect the Wealth and Retirement of the Near-Retirement-Age Population?
"The retirement wealth held by those ages 53 to 58 before the onset of the recession in 2006 declined by a relatively modest 2.8 percentage points by 2010.... Although most of the loss in wealth is due to a fall in the net value of housing, because very few in this cohort have found their housing wealth under water, and housing is the one asset this cohort is not likely to cash in for another decade or two, there is time for their losses in housing wealth to recover." (University of Michigan Retirement Research Center)

Savings Fall Short for Most Retirees But Other Factors Can Compensate
"[Recent aggressive advertising and media attention to the importance of] asset allocation in misplaced, a new study argues. For the vast majority of savers, improved investment returns won't materially extend how long retirement money lasts. That's in large part because few investors have enough money in their retirement account to tilt the balance. Far more important, says the paper from the Center for Retirement Research at Boston College, are three variables that don't require a brokerage account: how long you work, controlling spending and tapping the value of your home." (The Wall Street Journal)

Retirement Savings Shocker: For a Secure Retirement, Better Get Going on Your Savings Program
"[W]aiting even one year can have dramatic effects. If you invest $5,000 every year beginning at age 30 instead of 31, you will have $109,000 in additional savings, assuming an 8 percent compounded annual interest rate." (The Washington Post; free registration required)

Employers Can Have a Meaningful Impact on Employee Retirement Readiness
According to a recent analysis of Fidelity's 11.8 million accounts, the number of participants taking advantage of annual increase programs (AIP) increased nearly nine-fold over the past five years. Also, 20 percent more participants attended workplace workshops and 45 percent more used online webinars in 2011, compared to 2010. (Wolters Kluwer Law & Business / CCH)

DOL FAQs Address Participant Fee Disclosure Rules as Applied to Brokerage Windows, Calculation of Total Annual Operating Expense Ratio
"While brokerage windows, self-directed brokerage accounts and other similar plan arrangements (for simplicity, referred to here after as 'brokerage windows') are not considered designated investment alternatives and are therefore excluded from the annual investment disclosures, brokerage windows must still make certain annual plan-related disclosures to each participant eligible to use the window, whether or not he or she chooses to use the window. A plan administrator offering a brokerage window must furnish a general description of the brokerage window and any fees or expenses that may be charged against an individual participant's account. The quarterly disclosure must reflect the dollar amount of fees and expenses that were charged against that individual participant's account over the preceding quarter[.]" (SunGard Relius)

Getting Young Workers to Save: Selling Confidence in the Future
"One popularly expressed motive, 'live for today, because who knows what tomorrow will bring?' puts thoughts of retirement a very, very long way into the future.... We live in a world that causes [young people] to question their safety, security, and especially the future. In fact, they are constantly provided with excuses not to save. If we want more young workers to choose to save, we have to sell the benefits of paying themselves first and getting the free employer money." (Plan Sponsor Council of America)

Six Smart Steps to Get Your Employees Ready for Retirement
"You need to communicate differently with a 25-year-old than with a 62-year-old. The older worker doesn't need to hear about the benefits of a company match. If you're looking to change behavior, make it easier. For example, call a meeting to explain how to enroll, and then let employees check a box on a card so you can enroll them. Don't make them do it themselves later -- they may never do it." (Business Management Daily)

Commenters Say Qualified Longevity Annuity Contract Rules Should Allow More Options (PDF)
"A Treasury Department proposal to expand retirement income options is on the right track, but it requires some revisions to achieve the objectives outlined in the proposed regulation ..., a variety of interest groups said in public comment letters.... In drafting a final regulation, Treasury should strike a better balance between keeping QLACs simple to maximize monthly income and offering features that would make them more attractive to more people[.]" (Bloomberg BNA)

Educational Web Page on Retirement Plan Fees Comes Online from The Principal
"The online resource offers: [1] An explanation of retirement plan costs; [2] Tips on how to review plan services; [3] Help navigating cost considerations; [4] Tips for evaluating fee reasonableness; [5] Tips for addressing participant questions[.] The Principal also offers a new Fee Reasonableness Review Checklist, a sample template financial professionals can share with plan fiduciaries to help guide them through the evaluation process." (The Principal Financial Group)

401(k)s Making Lifetime Monthly Payments Might Be Future of Retirement Design
"Big employers have begun exploring efficient ways for workers to shift 401(k) assets into an investment option that guarantees income for life -- making the 401(k) more like a traditional pension. One option, which has been around for a long time, is an insurance product known as an annuity, where you pay maybe 30% of your 401(k) balance in return for a lifetime income stream. But more sophisticated products are in the mix, too, seeking to offer more generous income streams for similar amounts of money and risk." (TIME)

Redefining Retirement: The New 'Retirement Readiness' (PDF)
"[T]he 13th Annual Transamerica Survey found low levels of 'retirement readiness' among workers, and for many, saving enough to retire by age 65 may be unrealistic.... Most workers plan to either work past age 65 and/or work part-time in retirement ... however, few workers (20 percent) have a back-up plan if they are forced into retirement sooner than expected due to life�s unforeseen circumstances.... [T]he survey results illustrate important actions that can be taken by employers, the retirement industry, and policymakers to help workers achieve �retirement readiness�[.]" (Transamerica Center for Retirement Studies)

10th Annual Study of Employee Benefits Trends
"A key finding this year is that 60% of surveyed employers recognize the precarious economic climate, rather than reducing business focus on employee benefits, actually creates opportunity for benefits to drive human capital. In addition, the Study found employees are less committed to their employers, but at the same time, highly dependent on their workplace benefits." (MetLife)

Panel of Investment Advisers Recommends Annual Savings Rate of 10% to 16% Over Entire Career
"The Position Paper concludes that for many, target income replacement ratios should be higher than the 70-75% conventionally accepted as a rule of thumb. The higher ratio is to account for the projected cost of healthcare in retirement, and traditional financial planning concerns such as personal health, children education needs, and the cost of caring for elderly relatives. Regardless of target income ratio, the six panelists call for consistent contribution levels in the range of 10% to 16% of pay over a 30-year or 40-year career." (Retirement Advisor Council)

Income Tax Strategies as You Get Older: Retirement Tax Tips at Ages 59-1/2, 69-1/2 and Beyond
By prominent attorney Natalie Choate. "Many tax moves regarding retirement benefits are dictated by age. The 'big years' are age 59-1/2 (everybody knows that) and also, surprisingly, age 69-1/2. Here's a review of age-based tips ... If you inherited a traditional retirement plan from your spouse, don't roll it over to your own IRA until you are over 59-1/2. Leave it in your deceased spouse's plan and withdraw funds from it penalty-free if you need money." (Morningstar)

Employers� Outreach Methods Fail to Engage Employees in Retirement Savings
"Employers and their employees in the U.S. hold different perspectives on how to achieve retirement preparedness through 401(k) plans ... [D]espite efforts by employers to educate workers on the 401(k) offering, most workers remain disengaged and unprepared financially for retirement.... Relatively few 401(k) participants have the desire to manage their workplace savings plan ... [and] many employers are doubling down on outreach efforts that have not been effective:" (Society for Human Resource Management)

Buyout Offer is Risky Gamble for Ford's Pension Plan
"[One attorney says], 'I think this will come back to bite Ford. Plan assets gain when people die 'on time' or earlier than the actuarial projection, thereby leaving money in the plan. If you take all the unhealthy ones out of the picture, you may have a larger potential liability in the end because you have to put more money into the system in order to fund the benefits for longer-lived retirees.'" (CFO)

[Guidance Overview] New Q&As in DOL Field Assistance Bulletin 2012-2 Clarify, Expand Fee Disclosure Regs
"In 23 pages, the FAB provides a series of 38 FAQs addressing a variety of topics in the regulation. The answers provide examples and discussion on the disclosure requirements, amplifying many points that were previously unclear. They also set forth new rules, some of them quite surprising to those who have studied the regulation over the last year and a half, as well as some valuable exemptions. Sprinkled throughout is DOL commentary on fiduciary practices. Without a doubt, the FAB will mandate fine-tuning of programs and systems to comply with the new rules." (SunGard Relius)

Are Employers Expecting Too Much from Self-Directed Plan Participants?
"More than half (54%) of employers report that employees participating in plans are not taking full advantage of the investment options, features and services offered in connection with their 401(k) plan.... More than half (52%) [of employees, on the other hand,] say they don't have the time, interest or knowledge to properly manage their 401(k) portfolio. Nearly three-quarters (73%) spend less than eight hours per year managing their 401(k) plan account." (MarketWatch)

How Is Economic Hardship Avoided by Those Retiring before the Social Security Entitlement Age?
"[Four] out of five people who have zero earnings at pre-entitlement ages are able to find a way to lift their incomes over the poverty line. For men, pension and annuity income is important while for women, spousal income helps most to get them over the line. Reaching the early retirement entitlement age at 62 also has a significant impact on poverty avoidance." (The National Bureau of Economic Research; paid subscription or individual purchase required to retrieve full text)

'We Care, But We're Not Doing Enough to Help Employees Prepare for Retirement,' Employers Say
"While plan sponsors feel a strong sense of responsibility in educating participants about retirement preparedness, only 43% are confident that their participants are saving enough to get the monthly income they need in retirement." (Black Rock)

Trends in Employee Financial Issues, 2st Quarter 2012
"Despite an increased focus on retirement planning, employees still report being woefully unprepared for retirement, and recent stock market performance has done little to change employees' confidence in their investments. This could be the result of lost momentum coming out of a 'soft' recovery, or the early signs of an impending second recession." (Financial Finesse; free registration required to download copy of the brief)

Study Looks at Financial Habits and Retirement Planning for Women Who Are Moms (PDF)
"Clearly the 'sacrifices' of child care responsibilities may have long-term effects on retirement preparedness. Lower contribution levels, for example, can have a snowball effect over time and the effect can be magnified further for women raising children, who seem to have the lowest retirement contribution levels, and balances, of all." (ING)

[Guidance Overview] Another Question is Answered in the Who's the Employer Q&A Column
My wife (age 70, born September 1, 1931) and I both work for a small company (C corp) that had an SEP IRA but has recently switched to a calendar year 401(k) plan. My wife would like to roll over funds from the SEP IRA into the 401(k) plan. She would also like to roll other 'regular' IRA funds into the plan, as well as some 403(b) funds saved while working for a former employer. The goal is to avoid required minimum distributions. Can we? She is the President of the C corp and owns 4.96%. I am the CEO and own 4.5%. (BenefitsLink.com)

Retirement Issues Particular to Women: Patterns of Saving, Spending and Effectiveness of Incentives (PDF)
"This paper explores how women save and invest for retirement, what motivates them and how they feel about their own situations, where they look for information and how they save and spend. These insights can help employers, financial professionals, and financial providers offer solutions that might help address the risk women currently face in being prepared to care for themselves in retirement." (ING Retirement Research Institute)

IBM Phased Retirement Program Offers Benefits and Employment through 2013 in Exchange for Reduction in Hours
"IBM is offering employees who are nearing retirement -- and may be worried about a layoff -- a one-time voluntary program that would ensure their employment through Dec. 31, 2013. The program, called 'Transition to Retirement,' would cut a workers schedule and pay, but continue providing full benefits until the job guarantee's expiration date. The program, described in a letter addressed to IBM managers, 'offers participants 70% of their pay for working 60% of their schedule.'" (Computer World)

Raising Household Saving: Does Financial Education Work? (PDF)
"This article highlights the prevalence and economic outcomes of financial illiteracy among American households, and reviews previous research that examines how improving financial literacy affects household saving. Analysis of the research literature suggests that previous financial literacy efforts have yielded mixed results. Evidence suggests that interventions provided for employees in the workplace have helped increase household saving, but estimates of the magnitude of the impact vary widely. For financial education initiatives targeted to other groups, the evidence is much more ambiguous, suggesting a need for more econometrically rigorous evaluations." (Social Security Administration)

For Some Boomers, Delaying Retirement Isn't Worth It
"[The first wave of baby boomers -- Americans born between 1946 and 1964 -- have reached traditional retirement age and wasted little time before saying goodbye to the working world. It's a group that a new study by MetLife Inc says so far has defied the popular belief that baby boomers will be working longer than planned because their retirement savings got trashed in the stock market downturn." (The Salt Lake Tribune)

[Opinion] ASPPA Letter to EBSA on Asset Allocation Strategies, Model Portfolios and Need for Transitional Relief
"The American Society of Pension Professionals and Actuaries ..., the Council of Independent 401(k) Recordkeepers ... and the National Association of Plan Advisors ... are writing to request that [DOL] provide guidance which clarifies that asset allocation strategies and models are not themselves Designated Investment Alternatives ... under both DOL Regulation Section 2550.408b-2(c) (the '408(b)(2) regulation') as well as DOL Regulation Section 2550.404a-5 (the '404(a) regulation') ... and to provide for a good faith transition period in recognition of the uncertainties that remain in regard to the regulations' application." (ASPPA)

Objective-Based Approach to Participant DC Investing Is Needed
"[P]lan sponsors might want to think about presenting investment options to participants in a different way -- one that aligns more closely with the way participants think about their own retirement needs. The typical participant does not think about those needs in terms of asset categories: growth vs. value; large cap vs. small; international vs. U.S. Rather, they tend to think in terms of their own basic objectives and needs. Broadly speaking, these can be divided into four key categories: growth, income, inflation protection and liquidity." (Pensions & Investments)

401(k) Salary Deferrals: Better as Single-Sum, or Divided Per-Paycheck?
"If your plan allows you to max out with one contribution or just a few over several pay periods -- and still get your full match -- well, then, putting your money to work sooner than later is likely a wise move, particularly if you have a bullish outlook for the year. But you may find restrictions or drawbacks at the plan level. Seventy-one percent of employers issue their match on a payroll basis, calculating it as a percentage of your compensation during that payroll period[.]" (CNN Money)

Wellness = Retirement Savings
"[Principal proposes] that plan sponsors and their financial professionals consider an alternative approach to help undersaving participants contribute more towards retirement. Instead of focusing only on urging employees to save more, you might want to expand the focus to include helping employees find ways to spend less. Specifically, [Principal proposes] helping employees spend less on the major expense that is linked to the workplace -- the cost of their healthcare." (Principal)

The State of Retirement Planning by Americans: Issues of Longevity and Preparedness
"The [study] is a series of research examining what kind of planners people are, how their plans may have changed over time, whether they feel they're moving in the right direction, how they assess their ability to stay on course, and how this all fits against the larger backdrop of what is taking place in America today.... Centers for Disease Control data shows that average life expectancy for Americans today is 78.2 years, with women living to more than 80 years old on average. The second phase of the State of Planning in America Study revealed that Americans are startlingly unprepared financially to live to these average life expectancies." (Northwestern Mutual)

Text of GAO Testimony on Role of Federal Government in Promoting Financial Literacy Among Americans
"This testimony discusses (1) the federal government's role in promoting financial literacy, including GAO's role; (2) the advantages and risks of financial literacy efforts being spread across multiple federal agencies; and (3) opportunities to enhance the effectiveness of federal financial literacy education efforts going forward. This testimony is based on prior and ongoing work, for which GAO reviewed agency budget documents, strategic plans, performance reports, websites, and other materials; convened forums of financial literacy experts; and interviewed representatives of federal agencies and selected private and nonprofit organizations." (Government Accountabilty Office)

Sample Glossary of Investment-Related Terms for Disclosures to Retirement Plan Participants (PDF)
April 26, 2012 version. "The document is organized in two parts. Part 1 covers a broad group of general investment-related terms. Part 2 covers terms that are specific to insurance products." (The SPARK Institute)

Encouraging Employees to Push Savings to the Code Section 402(g) Maximum (PDF)
"How do you respond when an employee asks you 'how much should I be contributing to my 401(k) plan?' If you are like most plan sponsors, providers or advisors, you will typically respond by beginning a dialogue about how employees should be deferring at least a certain 'percentage' of pay, that this 'percentage' should be high enough to capture the employer match and that this 'percentage' should be increased annually. But if you ask us, our answer is simply this: '$17,000...the maximum the law allows.'" (MJM401k)

[Opinion] Text of Pension Rights Center Policy Director's Speech at 2012 Latino Retirement Security Summit
Speech by Karen Friedman. "[P]eople need to have a secure retirement and, sadly, technology can't fix that issue -- only having adequate income can.... Half of the nation's private-sector workers have neither a pension or savings to supplement Social Security and, as [the] study for National Council on La Raza shows, the situation is even more acute among the Latino population." (Pension Rights Center)

'Take This Job and Love It' -- Most Older Workers Say They Are Happy at Work
"The focus of this year's survey was working adults in their 50s and 60s with household income between $40,000 and $90,000, in which more than three-quarters (76 percent) say they are sticking with their jobs because they want to, not because they're stuck and can't leave (24 percent)." (Charles Schwab)

[Opinion] Text of Pension Rights Center's Criticism of U.S. Chamber's White Paper on the Private Retirement Plan System
"Like the Chamber, the Center is committed to financial literacy, but financial literacy is not just teaching people about compound interest and asset allocation. It is also about empowering employees and retirees by providing them with timely and plain-English information that helps them understand the terms of their plan the amount of benefits they have earned and how much they are paying in administrative and investment management fees. Hence, [the Center finds] it a bit of a contradiction that the Chamber recommends greater financial education, while at the same time advocating for the reduction or elimination of information -- such as quarterly statements in 401(k) plans -- that is necessary for people to be financially literate." (Pension Rights Center)

[Guidance Overview] Cracks in the Piggy Bank: 401(k)s Are Inadequate for Many Americans
"The financial crisis is partly to blame. It knocked $1.6 trillion, or about a third of the total value, off the nation's 401(k) accounts. But the larger truth is that most Americans do a poor job of anticipating the future and saving money. People don't seem to grasp that the pensions their parents' generation enjoyed have been almost entirely supplanted by 401(k)s, leaving them largely on their own to fund the final stage of their lives." (The Week)

[Guidance Overview] Federal Agencies Work Hard to Provide New Lifetime-Income Options for Qualified Plans
"This past February, the Treasury and the IRS released two proposed regulations, and the IRS issued two revenue rulings, that provide different strategies for achieving [a balance between lump-sum cash distributions (which provide liquidity) and lifetime-income options (which provide a steady stream of income over the participant's lifetime and protect against financial risk)].... The agencies have emphasized that this guidance is a first step, and encourage further comments and innovations from plan sponsors, providers of investment and financial products, participants and other stakeholders." (McGuireWoods LLP)

Generation Y Facing Retirement As Go-It-Alone Affair
"Roughly between 18 and 34 years old, [Generation Y's] table is wobbling on its last two legs: a job and a 401(k), which are co-dependent. Thus instead of protection, Gen Yers have inherited a great deal of pressure. More than ever, they know they better be employable, and they better be skilled 401(k) investors. The trouble is, it is quite difficult to do this when faced with high unemployment, and ever-higher student loan debt." (msnbc.com)

Defined Contribution Plan Executives Say Fee Disclosure Rules Won't Help Much
"When asked the 'likely outcomes' of the fee-disclosure regulations for participants, 49% said the participants will be confused by the regulations, and 48% said the disclosure will have 'little impact' on participants, said a report on the survey.... Only 5% said the regulations would help participants make better investment choices, while 20% said participants would exercise greater scrutiny of fees." (Pensions & Investments)

[Opinion] Statement of Consumer, Labor, Women's and Retiree Organizations Opposing Efforts to Eliminate Paper-Based Disclosures to Retirement Plan Participants
"Receiving clear and accessible information about 401(k) fees and investment options is critical if people are to be able to protect and understand their 401(k) benefits. In our view, [DOL] has already provided employers and financial institutions with sufficient latitude by allowing them to automatically provide information electronically to those people who work with their employer's computer network as an integral part of their day job. This is a compromise we support. But where employees do not use a computer in their everyday work, it must be up to them to decide -- not financial institutions or their employers -- whether they should get this critical information by mail or electronically." (Pension Rights Center)

Working Americans Facing Significant Drop in Income in Retirement
"Americans have responded to the financial turmoil of recent years with a shift to thrift that has helped bolster their personal household economy and boost their retirement readiness�just not enough to fully finance the lifestyle they envision.... [A]djusting your asset allocation, saving more in a workplace savings plan or [an IRA], delaying or working part time in retirement, or tapping into home equity ... [can have a] powerful impact ... when they are used in certain combinations or all together. The potential results of utilizing these actions in strategic ways may surprise you." (Fidelity)

Reasons Why Employees Can Benefit from Using IRAs and 401(k) Contributions to Defer Income Until Retirement
"You likely won't have a huge amount of income when you retire, which means a portion of your IRA withdrawals may be taxed at low rates, even if you consider income from Social Security. Part of your traditional IRA and 401(k) withdrawals may be taxed at 0 percent, some at the next tax bracket, and only some will be taxed at your marginal tax rate.... [Further, those] who live in a state with a high income tax can potentially save money if they defer income tax on their retirement savings and then move to a state with no income tax when they start withdrawing their retirement funds." (U.S. News & World Report)

Concerned Employers Seeking Plan Design Solutions to Help Employees Prepare for Adequate Retirement Savings
"According to [a 2012 survey] of more than 500 large U.S. employers, just 4% are very confident that their workers will retire with adequate retirement assets--compared with 30% who felt very confident in 2011. Only 10% in 2012 feel very confident that employees are taking accountability for their own retirement success." (Vanguard)

How Important Is Asset Allocation to Financial Security in Retirement?
"This paper proceeds in three stages. The first section reports a simple Excel spreadsheet exercise that provides a stylized example of the tradeoff between returns and time spent in the labor force. The second section uses data from the Health and Retirement Study (HRS) on pre-retirees aged 51-64 to see how the gap between retirement needs and retirement resources is affected by working longer, taking out a reverse mortgage, controlling spending, and shifting all assets to equities with no risk. The third section uses a simple dynamic programming model to calculate a risk-adjusted measure of the value for the average household of moving from a typical conservative portfolio to an optimal portfolio. The answer from all three exercises is the same: the focus on asset allocation is misplaced." (Center for Retirement Research at Boston College)

Retirement Planning and Financial Literacy Around the World
"Financial literacy is positively correlated to retirement planning, and a lack of financial knowledge results in fewer retirement savings, according to research[.]" (National Retirement Planning Coalition)

10 Ways Boomers Can Avoid Savings Shortfalls in Retirement
"Despite the savings challenge, there are steps Boomers can take to avoid running out of money in retirement, according to ... an education and advocacy group for women. Here's a 10-point checklist ... developed to help Boomers save themselves from retirement shortfalls." (Financial Planning)

Consumers' Tools for Retirement Planning
"To help educate consumers as part of National Retirement Planning Week, IRI has developed a set of consumer tips highlighting ways to ensure their retirement savings last throughout their lifetimes. These FINRA-cleared, client-approved tip sheets cover crucial retirement topics such as Social Security, Medicare, retirement savings plans and retirement income, as well as more in-depth topics such as partial 1035 exchanges and specifically tailored advice for middle-income Boomers." (Insured Retirement Institute)

Employee Advisory Committees Promote Benefits Buy-In
"Employee advisory committees, as the name suggests, are groups of employees who meet regularly or as needed to provide input on benefit programs and other issues affecting employees and the employment relationship. Some of these committees are highly formal, with set terms for members and with regularly scheduled meetings, with minutes taken and later shared. Many unions, colleges and universities, and public-sector employers maintain employee advisory committees. However, these committees can play a positive role in almost any organization." (Society for Human Resource Management)

Making the Most of the Retirement Plan Match (PDF)
"An employer match has a clear value to employees, but how do employers maximize that value? Match amounts, match formulas, and vesting schedules vary widely across plans. The match formula may affect safe harbor, participation, non-discrimination testing, contribution rates, automatic features, employee retention, and, perhaps most importantly, retirement outcomes. [Arnerich Massena looks at some of the options and how they're currently used, and then explores] the ways that you and your employees can reap the greatest benefit from a match." (Arnerich Massena, Inc.)

Tech Nerds Create 'Fantasy League' for Investments by Federal Thrift Savings Plan Participants
"'The 2008 market crash pretty much led us into doing the site because people are out there looking for answers, and it's almost mind-boggling the number of federal employees who don't understand TSP,' said [a] federal employee. Participants create anonymous usernames and fake accounts and compete in groups to see whose TSP posts the highest returns.... As in fantasy sports, players make trades and transfers under the same rules as the real TSP[.]" (Government Executive)

Lack of Job Security Keeps Many Workers Worried About Retirement Savings
"Concerns about future employment are leading to low retirement confidence levels ... [W]orkers who are confident about continued employment are confident they will have enough money to live comfortably throughout retirement. But with 42 percent of workers identifying job uncertainty as the greatest concern for American workers today, it was no surprise that confidence in retirement remains at historically low levels." (Insured Retirement Institute)

Young Investors Using New Tools to Weight Equities More Heavily in Asset Allocation
"Despite concerns about the global financial crisis and its impact on the willingness of younger investors to enter the stock market, twentysomethings actually have higher equity allocations in defined contribution (DC) plans than previous generations had at the same age." (Vanguard)

[Opinion] The Two Worlds of Personal Finance: Implications for Promoting the Economic Well-Being of Low- and Moderate-Income Families (PDF)
"Many low- and middle-income households do not receive financial advice on when to retire, how to arrange Social Security benefits, and homeownership, despite these being their most important retirement decisions." (Urban Institute)

Boomers' Eagerness May Limit Their Retirement Security
"By collecting benefits before their normal retirement age, nearly three-quarters of all current Social Security recipients are receiving reduced benefits and limiting their retirement security.... Those collecting Social Security at age 62 will reduce their benefits by 20 to 30 percent depending on their normal retirement age, which could amount to hundreds of thousands of dollars in lifetime payouts[.]" (Insured Retirement Institute)

Service Providers Finally 'Ahead of the Curve' for 401(k) Disclosures
"91 of 100 plan sponsors surveyed were satisfied with the fee disclosure communication they had received so far from plan service providers, including record keepers, fund providers and financial advisers." (Investment News)

How Delaying Retirement Can Help You
"The major financial benefits of deferring retirement are the ability to continue earning money, adding to your retirement assets, deferring drawing down those assets, and delaying the date you begin to receive Social Security benefits. Situations differ, of course, but here's a rough look at the impact of deferring retirement for five years, from age 65 to 70." (U.S.News & World Report)

How to Hedge 7 Retirement Risks
"Here's how to manage seven of the biggest retirement challenges: Inflation; Healthcare costs; Running out of money; Investment losses; Living longer than expected; Falling home values; [and] Forced retirement." (U.S.News & World Report)

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