Retirement Plan

The Senate introduced a piece of legislation that would require retirement plan sponsors to provide plan participants with estimates of how much income their accounts will generate in retirement. The majority of Americans approach retirement without a basic financial plan and with resources that are not sufficient for support of pre-retirement spending and lifestyles. The Lifetime Income Disclosure Act would provide Americans with a clear picture of the income-producing potential of their...

Larger 401k accounts (in excess of $200,000) dropped 25% on average in 2008. 95% percent of participants in defined contribution style 401k plans would pursue a "cash out" option if offered--essentially taking the lump sum of accumulated assets rather than an option to turn that pool of assets into a guaranteed stream of income . Only 25% of participants in defined benefit pension programs would accept the same lump sum "cash out" offer.

The U.S. Department of Labor (DOL) has published a guide titled " Women and Retirement Savings ." The guide discussed retirement planning from the perspective of women and highlights eight fundamental questions that women should ask themselves when preparing for the financial aspects of retirement. Sources: DOL and Wall Street Journal

There is a very good article in Investment News about retirement planning and, more specifically, devising appropriate withdrawal and income strategies in retirement. The author discusses the nature of various income requirements and makes the entirely appropriate point that all income needs are not created equal. For example, travel desires obviously differ from essentials such as food and shelter. There are also different inflationary characteristics that need to be taken into account. Health...