(MoneyWatch) If you're like most people who are approaching retirement, you've thought long and hard about the answers to these two questions:

- How much money do I need to retire?

- How can I generate a steady stream of income from my retirement savings that lasts the rest of my life no matter how long I live and what happens in the economy?

These are critical questions for most baby boomers who are planning for a retirement that could easily last 20 years or more. And that leads us to the most important question of all: When exactly can I retire?

These three questions have become particularly significant as companies continue to abandon traditional pension plans, meaning plans in which your employer takes responsibility for funding and paying you a monthly retirement income for the rest of your life. Without these safety nets in place, retirement planning now falls heavily on the shoulders of employees everywhere.

With the demise of pension plans, as an employee you're now much more likely to participate in account-based plans, such as a 401(k), 403(b), 457, profit-sharing or cash-balance plans. You might also have substantial savings in an IRA or regular investment accounts. And some of you might elect a lump sum, rather than monthly income, from a traditional pension plan, in which case you face the same challenges.

The biggest retirement planning mistake of all Planning your retirement: The best ways to generate lifetime income Study identifies major flaw with 401(k) plans

With these types of programs, however, you're on your own when it comes to making your money last for the rest of your life. And when your money is exhausted, there'll be nobody there to bail you out, unless you have very generous relatives or friends. Many surveys show that employees approaching retirement are struggling with these issues and need help.

A tale of two retirees

I'd like to tell you two stories about people I know who've had to manage their own retirement savings. These stories contrast the potential outcomes of the challenge of managing your own savings and offer important insights about the strategies that will help you achieve your retirement goals.

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Your most critical retirement planning challenge

LITTLE ROCK, AR--(Marketwire - Oct 1, 2012) - Most American workers know that retirement is, at least in theory, an option for their lives, but that it is not something that happens all on its own. In order to retire, an individual must plan, save, and invest prudently, often under the guidance of a professional retirement planner. According to a recent U.S. News & World Report article, penned by David Ning, retirement planning is more multi-faceted than many individuals realize. There are numerous portfolio options to consider, writes Mr. Ning, but also considerations about health, family dynamics, and more. The article, which urges pre-retirees to look at their eventual retirement from all angles, has merited a comment from Leek & Associates.

Leek & Associates is a public accounting company based in the Little Rock, Arkansas area. The company was founded in 1987 by Stephen Leek, whose vision for the company is to help businesses and individuals alike meet their financial goals through business valuation, accounting, and tax preparation services. Stephen Leek has issued a new press statement in response to the article from Mr. Ning.

"What a wonderful opportunity we have in our work lives, here in the United States, to be able to consider retirement, since in many countries that is not an option," says Stephen Leek in the Leek & Associates press statement. "To have built the financial portfolio needed even to consider retirement is a testament to one's success, and to years of hard work."

Leek goes on to specify some of the different retirement planning considerations mentioned in the article, which include not just financial concerns, but also concerns about living a healthy and satisfying life even post-career. "There are also the less tangible considerations that Mr. Ning has written about here, those that pertain to the sense of fulfillment one has during the retirement years.Giving back to charitable, educational and ecumenical organizations is high on my list, and staying healthy is a something that should become a daily lifestyle choice in those retirement years."

The Leek & Associates founder concludes with some retirement advice of his own. "I would suggest you consider some cash flowing real estate investments to supplement your income from the stock and bond portfolio, and to address the question of a 'Plan B' should your primary retirement investments not work out," writes Leek. "I personally own some real estate investments and have long advised clients on how to evaluate and invest in them. My Risk/Investment Continuum model can help you enhance your plan."

ABOUT:

Founded in 1987, Leek & Associates is a professional association of certified public accounting firms, its principals devoted to providing high-quality, efficient, and responsive services to business clients throughout the Little Rock area. The firm has been successful for 25 years, which is due to quality of our clients and the competency of our people. The firm provides services to individuals and to non-profit organizations; its services include personal and business financial advisement, management consultation, business valuation, general accounting, and tax preparation. The company is zealous for helping clients identify and meet their financial goals. Leek & Associates was founded by Stephen Leek of Little Rock.

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Leek & Associates: Retirement Planning Encompasses Financial and Personal Preparation

SACRAMENTO, Calif. (AP) In a story Sept. 28 about a state-run retirement program for private-sector workers in California, The Associated Press reported erroneously that the California Secure Choice Retirement Savings Program would be administered by a seven-member board. The board actually would have nine members.

Also, companion legislation signed by Gov. Jerry Brown requires another vote in the Legislature before the program can be implemented and participants can be enrolled.

A corrected version of the story is below:

Calif. creates state-run private retirement plan

Brown signs bill to create first state-run retirement savings plan for private-sector workers

By JUDY LIN

Associated Press

SACRAMENTO, Calif. (AP) California Gov. Jerry Brown signed legislation Friday that will create the nation's first state-administered retirement savings program for private-sector workers, over the objection of critics who said it creates a new liability for taxpayers.

The bill, SB1234, will establish the California Secure Choice Retirement Savings Program for more than 6 million lower-income, private-sector workers whose employers do not offer retirement plans.

The program directs employers to withhold 3 percent of their workers' pay unless the employee opts out of the savings program, which can be done every two years. It would be administered by a nine-member board chaired by the state treasurer. The board would select a professional fund manager, which could be a private investment firm or the state's public pension system, to maintain the money.

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Correction: Private Sector Retirement story

Video Link: https://www.youtube.com/watch?v=dcD5Y6RgUxg

30-09-2012 17:42 Hundreds of fans and Eagles owner Jeffrey Lurie participated in the jersey retirement of safety Brian Dawkins prior to Sunday night's game against the Giants. By Tom Moore.

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Eagles' Dawkins jersey retirement - Video

Video Link: https://www.youtube.com/watch?v=OJsLrwt-Es4

29-09-2012 03:24 As Prime Minister Manmohan Singh turns 80, we discuss if netas should have a retirement age or should they never retire. Watch full show:

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PM@80: At what age should politicians retire? - Video

When my organization first introduced its Secure Choice Pension (SCP) proposal in September 2011, we did not see it as an effort to reduce public anger over generous government pensions as some opponents so boldly assert.

To the contrary, we see it as a viable mechanism for giving private-sector workers what they want and what Americas economy needs reliable, lifetime retirement income immune to sudden economic downturns and market fluctuations that will allow those no longer working to contribute to the economy and not become reliant on government programs and entitlements.

When the Great Recession hit four years ago, it quickly deflated the value of 401(k)-style retirement accounts. Since then, workers have, in overwhelming numbers, expressed a desire for a more secure option for their retirement savings.

Not so long ago, private-sector workers enjoyed all three legs of the traditional retirement stool a pension, Social Security and personal savings like 401(k)s. But most private-sector employers have abandoned pensions, Social Security does not provide enough to live on, and even those who have saved diligently for retirement through 401(k)s are exposed to market fluctuations which put substantial portions of their account balances at risk through no fault of their own.

Small-business owners around the nation, and particularly in California, say they feel an obligation to provide retirement benefits and that providing those benefits would help them recruit good employees and boost their bottom lines. But they complain that they cant afford the plans currently available.

Our SCP proposal on which Sens. De Leon and Steinberg modeled Senate Bill 1234 and its California Secure Choice Retirement Savings Program proposes a public-private partnership to create an affordable, easily administered, professionally-managed retirement savings plan that private-sector employers could adopt for their employees.

A late-April survey of 505 California small-business owners with between two and 49 employees reveals widespread support (71 percent) for the De Leon-Steinberg proposal, with backing strong in every part of the state. That support crosses political lines as well with 78 percent of Democrats and 70 percent of Republicans in favor.

Senate Bill 1234 proposes a modest plan to provide modest benefits through conservative investments, leveraging lower-cost professional investment outcomes through economies of scale.

It is intended to address Californias retirement security crisis by providing millions of workers who have no employer-sponsored retirement benefits with access to a plan that their employers can afford. And all of this at no cost to taxpayers.

California taxpayers will most certainly be on the hook if these millions of workers are forced to retire without sufficient assets. Rather than engaging in purchasing, saving and other activities that contribute to the economy and generate tax revenues, they will be relying on public programs and entitlements, depleting public coffers and compromising economic stability and growth.

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Pension bill provides needed retirement option

By Sarah Olesen, Australian National University and Peter Butterworth, Australian National University

Welcome to Shades of Grey, a series from The Conversation that examines the challenges posed by Australia's ageing workforce. Today, Australian National University's Sarah Olesen and Peter Butterworth look at the issue of mental health and well-being in retirement.

Community views on retirement are polarised. Some see it as an opportunity to escape work obligations and pursue their own passions. Others view the transition as a loss of status, social connectedness, and financial security.

We've studied this topic using large samples of Australians to explore how retirement is associated with mental health and well-being.

The view that retirement has a negative effect on mental health is consistent with decades of evidence about the impacts of job loss among young and middle-aged people. And the transition to retirement is certainly a major milestone and lifestyle change, given the central roles work and career play in most people's lives.

Studies comparing the mental health of retirees with that of working older adults has shown that retirees (particularly men) tend to have greater levels of depression and anxiety than their working peers.

But longitudinal studies that track the mental health of people moving from work to retirement offers little proof that this transition has a significant detrimental impact on the mental health of most people. Indeed, it seems more likely that the poor mental health observed among many retirees precedes and perhaps has driven their workforce exit.

The reasons for retirement, whether people left work gradually or continue to work in some capacity during retirement, and the age at which people leave work have all been shown to affect mental health among retirees.

Not surprisingly, involuntary or unexpected job loss in later life is the form of retirement that has been most consistently linked to increased depression. On the other hand, part or gradual retirement (rather than full departure from the workforce) may ease the stress associated with leaving the workforce.

We are all familiar with the popular image of early retirement being a luxury enjoyed by financially secure individuals who lead full and satisfied lives. However, contrary to this widely held idea research shows that early retirees tend to have much poorer mental health than their working peers and older retirees.

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Retirement: a trigger for distress or welcome relief from the rat race?

Today's conventional wisdom may say Americans are worried about retirement, but an increasingly sizable percentage of consumers may not be doing much about it.

According to the New Retirement Mindscape 2012 City Pulse index, a survey released last week by Ameriprise Financial, only 70 percent of U.S. consumers report preparing for retirement. That's the lowest level recorded by the index in the past three years.

However, there were some bright spots in the survey, which surveyed consumers between the ages of 45 and 70. Residents of some metro areas reported higher than average levels of retirement preparedness and confidence. Hartford-New Haven topped the ranking of 30 metro areas, while Washington D.C. fell to the bottom spot.

The index polled consumers from the 30 largest metro areas in the United States to determine which residents were most prepared and most confident in their ability to retire. These five metro areas formed the top of the 2012 rankings.

Hartford-New Haven jumped in ranking from number six in 2011. Three in four respondents in the area say they have set money aside for retirement, and more than half invest money in an employer-sponsored plan such as a 401(k). Seventy percent of the region's residents said they have positive feelings about retirement.

With the exception of Minneapolis-St. Paul, all the other metropolitan areas in the top five spots were in the top 10 from last year. The Minnesota metro area climbed 15 spots from number 18 in 2011. Meanwhile, the greater San Francisco area, which held the number one position last year, saw its ranking drop slightly to number four.

On the other end of the spectrum was Washington D.C. where only 12 percent of residents reported feeling very financially prepared for retirement.

In addition to retirement preparedness and confidence, the index surveyed consumers on issues surrounding the upcoming presidential election.

Consumers appear to be keyed into several issues that could impact their retirement readiness. According to the index survey, a significant percentage of respondents note that candidate positions on the following issues are likely to influence their vote.

Concerns regarding these issues likely parallel the uneasiness many consumers feel about their own ability to retire.

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Sweating retirement? Your peers may not be

retirement

As the clock ticks and retirement looms, millions of Americans are worried. Thanks to a combination of overspending, undersaving and damage caused by the recent financial crisis, too few have saved too little for their golden years. The crisis has also caused retirement planning to be less of a priority for most citizens who are trying to make ends meet.

Alfonso Canella says the resulting retirement crisis should be obvious to everyone. The senior lecturer at the Brandeis International Business School in Waltham, Mass., says most workers will build their retirement on the principal of their savings, not on investment returns. Retirement planning should not be pushed to the bottom of your to-do list. His message is that people must start saving immediately and must squirrel away more than they think they will need.

As he says, "It's that simple."

The recent financial crisis has had a major impact on all aspects of the retirement system -- defined contribution plans, such as 401(k) plans, as well as defined benefit plans, or pensions. What is most problematic from your point of view?

The largest problem is the woeful undersaving in the private and public sectors. If you have a defined contribution plan, or DC, which is the plan where you put away pretax dollars into, say, a 401(k) plan. These plans, which are most prevalent in the private sector, allow a worker to contribute up to $22,500 per year pretax. (Editor's note: The limits are $17,000 for workers up to age 50 and $22,500 for workers 50 and older.)

Despite this significant tax advantage, most people don't maximize their contributions or, for that matter, even contribute. According to Fidelity Investments, its average 401(k) plan balance as of June 2012 was $72,800. If you use a rule of thumb that you must start with about $100,000 to get $5,000 per year in sustainable income during retirement, these savings are not enough. While many have additional pension income coming to them, be it from Social Security, individual retirement accounts, or some other plan, the numbers underscore what we all suspect: Americans are not saving as much as they should, especially for retirement.

The situation is somewhat similar for public-sector workers. These workers usually have a defined benefit plan, or DB, which pays benefits based on salary and length of service. In many cases -- too many, actually -- these workers face some underfunded pension plans. According to Boston College's Public Plans Database, the average funded ratio across all public plans in the U.S. in 2010 was about 77 percent. This ratio, which summarizes how much has been put away as a percent of projected payouts, summarizes the shortfall.

How can individual investors get ahead? Should they change their asset allocation strategy? How should they allocate their assets among stocks and bonds?

As I said previously, it is clear that workers must start saving as much as possible, especially taking advantage of tax-driven plans such as 401(k)s, IRAs and Roth IRAs. Let's face it: In these volatile markets, you will retire mostly on the principal of your savings and not because you made a killing in your investments.

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Key to retirement success is simple

MINNEAPOLIS, Sept. 26, 2012 /PRNewswire/ --On September 26, 2012, The Derivative Project, a Minnesota based, independent, non-partisan, retirement investor advocacy organization, announced today it has submitted a request to the Securities and Exchange Commission, Chairman Shapiro, for immediate action on two requests to protect retirement savings in money market funds that carry systemic risk, as outlined by the Federal Reserve Bank of New York in an April 2012 Report on "Shadow Banking."

In this request, The Derivative Project stated, "While a study, by the Financial Oversight Stability Council on how best to control the systemic risk that is inherent in the non-transparent money market mutual fund industry is being conducted, it is imperative that our nation's retirement savings be removed immediately from all money market mutual funds, carrying systemic risk, and moved to FDIC-insured sweep options. The yield will be greater for retirement investors in these sweep options and the risk will be less for the retirement investor."

Further, The Derivative Project requested that in addition to the SEC mandating that Retirement Fund providers replace money market mutual fund options with FDIC insured sweep accounts, a request was made to allow retirement savers at 401k's and 403B's (and SEP and Individual Retirement Accounts) the option to invest directly in FDIC bank CDs in the maturity of their choice or in U.S. Treasury securities, at Treasury Direct, with no additional fees charged by the retirement service provider. Retirement savers, in this historically low interest rate environment, deserve direct access to money market instruments; such as FDIC insured bank CD's and Treasury Direct, to ensure a positive return without systemic risk.

The Derivative Project also submitted this request for comment by each member of the SEC Investor Advisory Committee at their next regularly scheduled meeting, September 28, 2012. The Derivative Project will publish the Investor Advisory Committee Member's responses, following the Meeting.

The full text of this SEC Request will be made available at The Derivative Project's website http://www.thederivativeproject.com.

The Derivative Project is a non-partisan, Minnesota - based retirement investor advocacy organization that seeks to ensure the long-term stability of the U.S. economy through equitable enforcement, for both individuals and corporations, of financial laws and regulations. It is the only non-partisan, independent retirement investor advocacy organization in the United States.

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The Derivative Project Requests SEC Move Retirement Cash to FDIC Sweep Accounts.