Given Up Hope on Retirement?
Newsweek
http://www.newsweek.com/id/215868&ct=ga&cd=sGppdOACJMU&usg=AFQjCNHR5nGtzlbxNw-FIOFz4YY-LkS6vw
Tuesday, September 29, 2009
September 2009 cover story for Plan Sponsor
Indeed, some say typical income-replacement tools may underestimate people’s needs. The models do not fully account for such crucial factors as investment risk, longevity risk, and catastrophic health-care cost risk, VanDerhei says. “In a lot of cases, that 75% to 80% [replacement ratio] is way, way too low if you want even a 75% chance of having enough money,” he says. He developed the Ballpark E$timate Monte Carlo model for EBRI that aims to give people a sense of what income-replacement rate they need to have a 50%, 75%, and 90% chance of being able to cover their basic expenses in retirement. A single rule-of-thumb does not work, he and others say, given the variability in individuals’ situations. “A lot of models just use an average: average expected returns, average life expectancy,” he says. “If you think about it, they are saying, ‘This is how much you need to have a 50% chance of not running out of money.””
http://www.plansponsor.com/magazine_type3/?RECORD_ID=44531&page=1
An Evaluation of the Adequacy and Structure of Current U.S. Voluntary Retirement Plans, with Special Emphasis on 401(K) Plans
Abstract:
This paper reviews the results of many empirical and simulation studies EBRI has undertaken to determine whether future cohorts of retirees in the US are likely to have retirement income adequacy and the extent to which the voluntary retirement system is contributing to this objective in its current form as well as possible modifications that may increase its efficiency.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1474865
This paper reviews the results of many empirical and simulation studies EBRI has undertaken to determine whether future cohorts of retirees in the US are likely to have retirement income adequacy and the extent to which the voluntary retirement system is contributing to this objective in its current form as well as possible modifications that may increase its efficiency.
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1474865
The Declining Role of Private Defined Benefit Pension Plans: Who Is Affected, And How
Excerpt: "Using an empirical distribution of enhanced contributions to DC plans from sponsors freezing their DB plans, we simulate the nominal annuity that could be purchased at retirement age from these enhanced contributions. We then back out the net pension loss experienced by employees in the future."
http://www.pensionresearchcouncil.org/publications/document.php?file=811
http://www.pensionresearchcouncil.org/publications/document.php?file=811
Tuesday, June 2, 2009
IRAs are more popular as other investments wane
IRAs are more popular as other investments waneSt. Louis Post-Dispatch - St. Louis,MO,USA
Tuesday, May 5, 2009
Wednesday, April 22, 2009
Monday, April 20, 2009
The 2009 Retirement Confidence Survey: Economy Drives Confidence to Record Lows; Many Looking to Work Longer
http://papers.ssrn.com/sol3/papers.cfm?abstract_id=1390072
Abstract:
This paper presents key findings from the 19th annual Retirement Confidence Survey (RCS), a survey that gauges the views and attitudes of working-age and retired Americans regarding retirement, their preparations for retirement, their confidence with regard to various aspects of retirement, and related issues. Workers who say they are very confident about having enough money for a comfortable retirement this year hit the lowest level in 2009 (13 percent) since the Retirement Confidence Survey started asking the question in 1993, continuing a two-year decline. Retirees also posted a new low in confidence about having a financially secure retirement, with only 20 percent now saying they are very confident (down from 41 percent in 2007). More workers are also planning to supplement their income in retirement by working for pay. The percentage of workers planning to work after they retire has increased to 72 percent in 2009 (up from 66 percent in 2007). This compares with 34 percent of retirees who report they actually worked for pay at some time during their retirement. Workers who say they are very confident in having enough money to take care of basic expenses in retirement dropped to 25 percent in 2009 (down from 40 percent in 2007), while only 13 percent feel very confident about having enough to pay for medical expenses (down from 20 percent in 2007). Among retirees, only a quarter (25 percent, down from 41 percent in 2007) feel very confident about covering their health expenses. Many workers still do not have a good idea of how much they need to save for retirement. Only 44 percent of workers report they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire - and an equal proportion (44 percent) simply guess at how much they will need for a comfortable retirement.
The 2009 Retirement Confidence Survey was conducted in January 2009 through 20-minute telephone interviews with 1,257 individuals (1,001 workers and 256 retirees) age 25 and older in the United States. The RCS was co-sponsored by the Employee Benefit Research Institute (EBRI), a private, nonprofit, nonpartisan public policy research organization; and Mathew Greenwald & Associates, Inc., a Washington, DC-based market research firm.
Abstract:
This paper presents key findings from the 19th annual Retirement Confidence Survey (RCS), a survey that gauges the views and attitudes of working-age and retired Americans regarding retirement, their preparations for retirement, their confidence with regard to various aspects of retirement, and related issues. Workers who say they are very confident about having enough money for a comfortable retirement this year hit the lowest level in 2009 (13 percent) since the Retirement Confidence Survey started asking the question in 1993, continuing a two-year decline. Retirees also posted a new low in confidence about having a financially secure retirement, with only 20 percent now saying they are very confident (down from 41 percent in 2007). More workers are also planning to supplement their income in retirement by working for pay. The percentage of workers planning to work after they retire has increased to 72 percent in 2009 (up from 66 percent in 2007). This compares with 34 percent of retirees who report they actually worked for pay at some time during their retirement. Workers who say they are very confident in having enough money to take care of basic expenses in retirement dropped to 25 percent in 2009 (down from 40 percent in 2007), while only 13 percent feel very confident about having enough to pay for medical expenses (down from 20 percent in 2007). Among retirees, only a quarter (25 percent, down from 41 percent in 2007) feel very confident about covering their health expenses. Many workers still do not have a good idea of how much they need to save for retirement. Only 44 percent of workers report they and/or their spouse have tried to calculate how much money they will need to have saved by the time they retire - and an equal proportion (44 percent) simply guess at how much they will need for a comfortable retirement.
The 2009 Retirement Confidence Survey was conducted in January 2009 through 20-minute telephone interviews with 1,257 individuals (1,001 workers and 256 retirees) age 25 and older in the United States. The RCS was co-sponsored by the Employee Benefit Research Institute (EBRI), a private, nonprofit, nonpartisan public policy research organization; and Mathew Greenwald & Associates, Inc., a Washington, DC-based market research firm.
Keywords: Retirement attitudes and opinions, Retirement planning
Wednesday, April 15, 2009
Tuesday, April 14, 2009
Saturday, January 10, 2009
Your Company's Fund Is Bruised, but Don't Worry Washington Post, United States - Jan 10, 2009
Your Company's Fund Is Bruised, but Don't Worry Washington Post, United States - Jan 10, 2009
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