Retirement

The Center for Retirement Research at Boston College indicates that qualified retirement savings have decreased by almost a third--to an average balance of $56,000--due to the financial crisis. "The 2007 Survey of Consumer Finances shows 401(k)/IRA balances of $78,000 for those approaching retirement, a modest improvement over 2004. However, by October 2008, the stock market collapse had reduced 401(k)/IRA balances by about 30 percent - to just $56,000." Source: Center for Retirement Research...

Article encourages partial annuitization through fixed annuities as a prudent approach to planning one's retirement finances. Even if you invest well and diversify your portfolio, you can't be completely sure that you'll outlive your money. That's where putting a portion of your assets into an immediate annuity can be useful -- by guaranteeing a stream of income for life, supplementing what you'll get from Social Security and any employer pension you might receive. Source: Motley Fool Full Story

Longevity risk is increasingly seen as a critical consideration in retirement planning process. Investment risk and longevity risk should be equal pillars guiding investment decisions. Translation: A low-risk investment strategy that generates safe but limited returns – while a comfortable and reasonable near-term investment approach – will not be sufficient to fully fund retirement years that could last several decades. Source: Christian Science Monitor Full Story

Barclays and other large asset managers roll-out sophisticated defined contribution plans that have annuity options built into the plans. Employers, however, have been slow to adopt the new programs. If you're approaching retirement right now, there's no easy fix for your portfolio. But if you are in midcareer, you may soon have a chance to structure your 401(k) in a much different way. A dozen or so asset managers and insurers, including AllianceBernstein, AXA, Barclays Global Investors, John...

The Obama administration seeks to enhance retirement savings by forcing forcing employers to automatically enroll employees in "direct-deposit IRA account." The plan would force employers that don’t offer retirement plans to enroll employees in a “direct-deposit IRA account,” with the option for workers themselves to opt out. Currently, 75 million working Americans, or about half the workforce, lacks employer-based retirement plans, according to the administration. Source: Bloomberg Full Story