Retirement Planning Mistakes

Marketwire warns against three retirement planning mistakes. They are:

1. Doing Nothing
2. Underestimating Needs
3. Going It Alone, i.e., without a financial advisor

Retirement Planning Week

The Insured Retirement Institute (IRI) is sponsoring National Retirement Planning Week from April 12-15.

Las Vegas: Inappropriate?

EEOC vs Kelley Drye & Warren

A recent lawsuit by the Equal Employment Opportunity Commission (EEOC) against Kelley Drye & Warren has renewed attention on forced retirement in America’s law firms. The EEOC in January sued Kelley Drye over its policy of de-equitizing partners who turn 70. The firm has denied discriminating against older partners and insiststhat partners are not entitled to employee protections.

Pensions for Convicts

Efforts in Louisiana to keep convicted public officials from collecting state benefits have run into trouble. Currently, convicted public officials, such as  former Gov. Edwin W. Edwards, collect publicly funded retirement benefits even as they serve prison sentences. But many feel there should be no pensions for convicts.

To Annuitize or Not?

The Obama Administration is viewing annuities as an integral piece of the retirement income puzzle. The idea would be to incorporate annuities or annuity-like products into retirement plans.

Already, the public is voicing its opinion through a request for information solicited by the U.S. Department of Labor (DOL). So far, it has published 470 public comments, and the comment period is open until May 3.

Providers of retirement plans oppose any mandated solution while some parts of the financial services industry welcome the government's initiative to examine the role of annuities.

Doing Without

A survey by Nationwide has found that 71 percent of Americans do not have a financial advisor.

Positive Influence of the 401(k)

New research conducted by the non-profit Transamerica Center for Retirement Studies® highlights how the availability of 401(k) and similar employee-funded retirement plans, or lack thereof, may lead workers down divergent paths in saving and planning for retirement, which, in turn, may result in dramatically different outcomes when they reach retirement age. The results of the 11(th) Annual Transamerica Retirement Survey—conducted among nearly 3,600 American workers—found that workers who are offered 401(k) plans, or similar employee-funded arrangements, exhibit more proactive retirement savings behaviors, demonstrate higher levels of knowledge about retirement investing, and are more confident in their ability to retire comfortably.

Per the research, the availability of a plan is highly correlated to proactive saving behaviors beyond simply providing a vehicle to save. Of those who are offered a plan, two-thirds (66 percent) are saving for retirement outside of the plan. In contrast, only 57 percent of those not offered a plan are saving outside of work.

Workers offered an employee-funded plan also appear to be at a distinct advantage because they are more likely to have a retirement savings strategy.                                             

Florida

In the Florida House, a bill eliminating a health insurance subsidy for retired state employees failed narrowly on the floor, only to be revived by leadership in order to get a narrow vote in favor.

Law Firm Mandatory Retirement

The American Bar Association recommended in 2007 that law firms eliminate mandatory retirement policies; yet, many still maintain them.