Archive for May, 2012

Retirement Saving By Age

The Employee Benefit Research Institute (EBRI) released their 2012 Retirement Confidence Survey.   The confidence results are located on their web site at http://www.ebri.org/pdf/surveys/rcs/2012/fs-04-rcs-12-fs4-age.pdf.  The survey includes a comparison of employees saving by age cohort over the past decade.   Surprisingly, there has been a 15% drop in saving from 70% in 2002 for ages 25-34. Are we educating this younger group appropriately?   Why the lower prioritization of retirement savings?

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May 31, 2012 at 8:01 am Leave a comment

Do You Know How Much You Need to Retire?

The Employee Benefit Research Institute (EBRI) released their 2012 Retirement Confidence Survey.   The confidence results are located on their web site at http://www.ebri.org/pdf/surveys/rcs/2012/fs-03-rcs-12-fs3-saving.pdf.   Do you know how much you need to save for retirement?   If not, you are in good company. 42% per the survey have never done a calculation.  The results also indicate that there is some correlation between having done the calculation and increased confidence regarding retirement savings.  There are many online calculators that can help those individuals who wish to estimate this amount.   One calculator that may be of interest is located on CNN’s web site at http://cgi.money.cnn.com/tools/retirementneed/retirementneed_plain.html.

May 30, 2012 at 5:30 pm Leave a comment

IL Pension Reform

Many states are currently discussing or have already discussed reforming their pension systems.   Illinois is going through an interesting debate right now.   The Chicago Tribune has an article entitled “Illinois Pension Reform Clears First Hurdle” by Ray Long and Rick Pearson located on their web site at http://www.chicagotribune.com/news/watchdog/pensions/chi-illinois-pension-reform-clears-first-hurdle-20120529,0,5833211.story.  The article discusses an interesting choice in the proposed legislation that participants can choose an old system with 3% Cost of Living (COLA) adjustment and give up retiree health insurance when they retire or forgo the COLA and be able to participant in retiree health insurance coverage when they retire.   The focus on retiree health insurance is noteworthy.  Retiree health insurance has disappeared from most private organizations and is a rare employee benefit.

May 29, 2012 at 11:11 pm Leave a comment

When Will You Retire?

The Employee Benefit Research Institute (EBRI) released their 2012 Retirement Confidence Survey.   The survey results regarding expectations are located on their web site at http://www.ebri.org/pdf/surveys/rcs/2012/fs-02-rcs-12-fs2-expect.pdf. What age do you plan to retire at?  Or do you plan to retire at all?  The survey found that only 37% of pre-retirees planned to retire after age 65.  With changes in life expectancies, would we expect this to be higher?   The survey has a noteworthy comment regarding 50% of retired survey respondents indicate that they have to retire earlier than expected in 2012.  Of that percentage, a large portion retired early due to health problems.

May 28, 2012 at 4:36 pm Leave a comment

How Confident Are You About Retirement?

The Employee Benefit Research Institute (EBRI) released their 2012 Retirement Confidence Survey.   The confidence results are located on their web site at http://www.ebri.org/pdf/surveys/rcs/2012/fs-01-rcs-12-fs1-conf.pdf.   Prior to 2008, pre-retirees who were very confident that they would have enough funds were in the 23-27% range.   For 2012, the very confident are at 14%.  Confidence has remained low since 2008, demonstrating a lack of optimism since the stock market crash.  Will this confidence likely turn around soon?   Also, it is noteworthy that the EBRI survey indicates the high correlation between debt and confidence levels.

May 25, 2012 at 8:37 am Leave a comment

Pension Funding and Risk

Numerous pension plans have had funding problems in recent years.   The passage of numerous recent legislation has been working to improve funding.   The Society for Human Resource Management has an article by Richard Berger entitled Funding Decisions Loom for Pension Plan Sponsors on their web site at http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/FundingDecisions.aspx?homepage=latestnews.  The author discusses “de-risking” where he describes how in his opinion that as plans move toward becoming fully funded that they will move toward adding more fixed-income and lower risk investments in their plans.

May 24, 2012 at 7:11 pm Leave a comment

Pre-retirees’ Expectations

Earlier this week, we discussed pre-retirees’ concerns.  As a contrast, I thought it would be interesting to include a post regarding pre-retirees’ expectations.   When do you plan to retire?   What do you plan to do when you retire?   Work part-time or consult?   The Society for Human Resources Management has an article by Stephen Miller discussing survey data on this topic on their web site at http://www.shrm.org/hrdisciplines/benefits/Articles/Pages/WouldSwitch.aspx?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed%3A+shrm%2Fnews%2Fhr+%28SHRM+Online%3A+HR+News%29. I found how large the percentages were of employees who expect to retire after age 65 and who will work after retirement particularly interesting.  It would be interesting to see how these numbers correlate with different pre-retiree concerns such as not having enough money for long-term care.

May 23, 2012 at 9:18 pm Leave a comment

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Christine Gurney

A pension professional who shares her thoughts and ideas about the pension world for industry members and anyone else interested.

@ChristineGurney

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