For women heading toward retirement, theres good news and bad news. The good news is theyre likely to be blessed with long life. The bad news: They may not be able to afford it.

SEE ALSO: 12 Retirement Strategies for Women

That, in effect, is the conclusion of a recent study by the U.S. General Accounting Office. Despite the increase in womens workforce-participation rates over the past two decades, the poverty rate in 2010 for women 65 and older was 9% -- nearly twice the rate for men, at 5%. And while 6% of widowers lived in poverty, 12% of widows were poor.

According to the GAO report, women have a tougher time saving for retirement in part because they take time out from the workforce to care for family members, and when they do work they have lower earnings than men. Other studies bear this out: Women who are 50 to 69 have about 20% less in retirement savings than men in that age group, according to a recent report by the ING Retirement Research Institute. Another report notes that while half of baby-boomer men have retirement savings of at least $200,000, only 35% of female boomers have that level of savings.

Women who are five to ten years from retirement can take some steps to improve their financial readiness. Many of these moves can apply to women of all ages.

Maximize your own retirement benefits. If youre looking for a new job, make sure it has a good retirement plan. Its unlikely these days that you will find a job with a pension plan that guarantees a stream of income in retirement. But you can seek out employers that will match all or part of your contributions to a 401(k) or a similar employer-based plan. A company match is free money.

Even when married women are working, women tend to set aside a smaller amount of their income than men, says Suzanna de Baca, vice-president of retirement and wealth strategies at Ameriprise Financial Services. The couple may decide that the womans income is more discretionary, she says. But any woman who is working should contribute as much as possible to an employer-sponsored retirement plan. If her employer doesnt offer a retirement plan, de Baca says, she should set up an IRA.

Indeed, Kelly O'Donnell, vice-president at Financial Engines, which provides asset management for 401(k) plans, told the U.S. Senate Special Committee on Aging at a recent hearing that men tend to save nearly twice as much as women. "Among our clients, the median 401(k) account balance for men age 60 and older is $82,000 and only $46,000 for women age 60 and older," O'Donnell said.

In 2012, you can set aside up to $17,000 (plus up to $5,500 in catch-up contributions if youre 50 or older) in a 401(k). If youre self-employed, you can make deductible contributions to a retirement plan, too, such as an individual 401(k). If you dont have access to an employment-based retirement plan, you can make $5,000 ($6,000 if youre 50 or older) in deductible contributions to a traditional IRA, or you make the same amount of after-tax contributions to a Roth IRA, which grows tax-free.

Working longer can help maximize your Social Security benefits. The Social Security Administration uses your highest 35 years of earnings to calculate your benefit. Any zeros -- perhaps for years you left the workforce to care for children -- will pull down the average. If you keep working, youll be able to raise your benefit -- and maybe knock out a zero or two.

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The Rules of Retirement for Women

(MoneyWatch) Most people spend more time planning their next vacation or car purchase than planning for their retirement and rest-of-life. That's a huge mistake. Neglecting to plan for a period of your life that might last 20 years or more -- during which you have to rely mostly on your accumulated financial resources -- could be the biggest mistake you'll ever make.

And while it's an ambitious task to plan for such an extended period of time, it's a necessary one. So it makes sense to spend a significant amount of time and effort to do the job right.

There are a number of important issues you'll need to research and think about, including:

One important step many people overlook during the planning phase involves the amount of money you need to save for retirement. According to the 2012 Retirement Confidence Survey conducted by the Employee Benefit Research Institute (EBRI), only 42 percent of Americans have actually calculated how much money they'll need to save for retirement. An equal percentage of Americans simply guess at this amount -- and they usually guess too low. The unfortunate result is that these people will most likely exhaust their retirement savings while they're in their 70s or 80s, and will then need to make drastic changes in their lifestyle because they no longer have enough money to maintain their standard of living.

10 Best Places to Retire

The EBRI study also showed that people who calculate how much savings they'll need are more confident about their ability to retire. So try calculating how much money you really need to save by following the steps in this post.

If you do a good job addressing the financial aspects of retirement, it's likely that your financial planning will quickly morph into life and career planning, too, especially if you see that your financial resources aren't enough for a traditional retirement of "not working." Finding that out now, however, is a good thing, since it helps you focus on what you really want for the rest of your life and what type of work you can do to generate those needed funds so that you'll be both happy and financially secure.

Retirement planning: How to do it right 4 retirement planning mistakes you may be making 5 biggest retirement planning mistakes 5 tips for using retirement calculators

While it might take some time to do it right, planning ahead means you'll learn how you can have the best possible rest-of-life and avoid common financial and lifestyle mistakes. If you take steps to avoid these retirement planning mistakes now, you can focus on what's really important -- what you want for the rest of your life and the legacy you might leave.

Want to avoid making any retirement planning mistakes? I've prepared a free, online series of posts titled 12 weeks to plan your retirement. These posts guide you through the important decisions you need to make to plan for a happy, secure future.

Link:
The biggest retirement planning mistake of all

It's a retiree's nightmare: outliving the assets in a retirement portfolio.

Between historically low interest rates dragging on fixed-income yields and uncertainties about taxes, not to mention the threat of future inflation and volatile markets that send skittish investors seeking shelter, retirees who are living longer are finding it challenging to keep their portfolios up to speed.

Recent calculations from the Employee Benefit Research Institute show that roughly 44% of those born between 1948 and 1978baby boomers and Generation Xwon't have adequate retirement income, and that is assuming interest rates go back up in 2014. But the current environment is weighing even on those heading into retirement with what seems like a tidy sum.

Retirees need an efficient plan of attack to squeeze all the juice out of their portfolios, ensuring they have sufficient assets for their golden years. Here are some strategies:

Retirees should map out a budget for necessitiesinclude everything from housing to food, transportation, health expenses and utility billsand set aside a chunk of a portfolio for these costs.

Many planners suggest putting funds to cover three to five years' worth of expenses into safe and liquid vehicles, so the retiree has cash on hand, even if the market drops.

"That way you don't have to liquidate in a down environment," says Marty Leclerc, portfolio manager for Barrack Yard Advisors in Bryn Mawr, Pa.

Even though money-market funds are returning basically nothing, funds earmarked to be used within three years should go into these instruments, says Michael Gibney, a financial planner in Riverdale, N.J. "There is no reason to put money that will be used within a short time period at risk," he says.

For five-year time frames, look to add in a short-term bond fund or certificate of deposit to gain a little more yield, he says.

With many people living well into their 90s, retirees need to think carefully about how to protect themselves from running out of money in their later years.

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Making Your Retirement Assets Last

Almost six months after Hartford Financial Services Group Inc. (HIG) started looking for suitable divestiture opportunities for its Individual Life and Retirement Plans segments as well as the Woodbury Financial Services unit, the company announced an agreement to sell the Retirement Plans business to Massachusetts Mutual Life Insurance Company (MassMutual). The divestiture is expected to close by the end of the year, subject to the attainment of regulatory approval and other customary closing conditions.

Hartford will receive a cash ceding commission of $400 million for the transaction. However, the amount is open to adjustment before the completion of the sale.

Although the transaction is unlikely to have a material impact on the companys results on a reported basis, it is expected to boost the net statutory capital, including ceding commission and lower risk-based capital requirement, by about $600 million. The impact on the financials can be revised at the time of closure of the transaction to include the impact of market conditions, Hartfords results as well as other adjustments.

Following the closure of the deal, Hartfords Retirement Plans business will be taken over by the Retirement Services Division of MassMutual. However, the agreement allows Harford to sell new retirement plans during the transition period. MassMutual will cover the risks and expenses related to the new plans under a reinsurance agreement. The Goldman Sachs Group Inc. (GS) and Greenhill & Co. Inc. (GHL) are acting as Hartfords financial advisors for the deal.

The deal is an outcome of Hartfords plan, announced in March this year, to divest its Individual Life and Retirement Plans segments along with Woodbury Financial Services under intense pressure from its largest shareholder, John Paulson. Woodbury is an indirectly-held, wholly-owned retail broker-dealer subsidiary, included in the Individual Life segments distribution network.

Subsequently, in August, Hartford entered into a strategic alliance with American International Group Inc. (AIG) to sell Woodbury. The deal is expected to consummate by the end of this year, subject to approval by regulatory bodies. According to Reuters, Hartford will receive $90 million pursuant to this acquisition. It will also receive an additional $25 million as dividend from Woodbury.

Currently, Hartfords shares carry a short-term Zacks #3 Rank (Hold). Also, we maintain our long-term Neutral recommendation on the stock.

Read the Full Research Report on HIG

Read the Full Research Report on GS

Read the Full Research Report on GHL

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Hartford Sells Retirement Plans Biz

I'm 46 years old and for the past 22 years I've put 6% of my paycheck into my 401(k). Will I have enough to live on when I retire at 67 -- Diana B., Va.

Getting an early start on saving and sticking with it is by far the best way to gain the inside track to a secure retirement.

So the simple fact that you've contributed to your 401(k) every year since the beginning of your career leaves you in a much better position than if you had procrastinated or not saved at all.

But without knowing how much you've actually accumulated in your 401(k), I can't really say whether you're on track to retire at 67.

Fortunately, you can gauge that pretty easily yourself. Just go to a good online retirement calculator and enter such information as your salary, the current balances of your 401(k) and any other retirement accounts, a breakdown of how your savings are invested and the percentage of pay you plan to set aside annually over the next 20 years.

Once you've plugged in those figures, the calculator will estimate the probability that your projected savings plus Social Security will be able to generate enough income to support you throughout retirement

Ideally, you'd find that chances are good that you'll be able to retire on schedule at something close to your pre-retirement standard of living if you continue your current regimen.

But unless your employer has been supplementing your savings with generous employer matching funds over the years, I doubt that will be the case. Typically most people need to save between 10% and 15% of their annual income throughout their career to have a realistic shot at a secure and comfortable retirement. I suspect that a 6% annual savings rate will leave you a bit short of where you should be.

Still, even if you find that you're not as prepared for retirement at this point as you'd like, there's no reason to panic. You've still got several options for improving your prospects, and plenty of time to turn things around.

The single most effective move you can make (which I'm sure will come as no surprise) is to boost the percentage of pay that you sock away each year.

Link:
Retirement savings: Am I on track to retire at 67?

By Zachary Tracer - 2012-09-04T21:22:48Z

Hartford Financial Services Group Inc. (HIG) agreed to sell a retirement-plans business for $400 million after billionaire investor John Paulson pressured the insurer to improve results.

The sale to Massachusetts Mutual Life Insurance Co. may be completed by year-end, Hartford said today in a statement. The deal, structured as a reinsurance transaction, will boost capital by $600 million and wont affect financial results under generally accepted accounting principles, the Hartford, Connecticut-based insurer said.

Hartford Chief Executive Officer Liam McGee, 57, agreed this year to sell a broker-dealer unit and individual-annuities distribution business. Prudential Financial Inc. emerged last month as lead bidder for Hartfords individual life-insurance business, people with knowledge of the matter said then.

Hartford could use cash proceeds from the sale of its life and retirement units to reduce debt, support ongoing businesses and repurchase stock, Jay Gelb, an analyst at Barclays Plc, wrote in an Aug. 20 research note. Ongoing core units should deliver improved and stable returns.

Paulson, whose hedge fund is Hartfords largest investor, had called on the seller of life insurance and property-casualty coverage to do something drastic to boost the stock price, which fell 39 percent in 2011. McGee responded with plans to sell or shutter parts of the insurer.

We continue to make good progress executing on our strategy, McGee said in the statement. With the Hartfords sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value.

Hartford advanced 2.2 percent to $18.09 at 4:30 p.m. in New York. It had gained 8.9 percent this year through the close of regular trading.

The transaction will help policyholder-owned MassMutual expand its retirement-plan business to smaller clients, CEO Roger Crandall said in a telephone interview.

The opportunity to get into that smaller and mid-sized plan market is a real positive for us, Crandall said. There are an awful lot of small companies and small plans out there.

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Hartford to Sell Retirement Plans for $400 Million

William Bernstein, investment adviser and author, says the worst mistake is not knowing when to take money off the table.

NEW YORK (Money Magazine) -- William Bernstein has a gift not only for grasping the complex but for helping the rest of us get it too.

He spent the first chunk of his career as a neurologist practicing on the coast of Oregon but cut back on his work hours in 1990. A few years later he focused on a new fascination: investing. He launched an online journal (a sort of proto-blog) called efficientfrontier.com and wrote "The Intelligent Asset Allocator," the first of several books. (He has also written for MONEY.)

Now he's an investment adviser for a handful of high-net-worth clients. Bernstein's writing often explores academic financial theory, but he manages to turn it into practical, plain-English advice.

His latest obsession, resulting in the short e-book "The Ages of the Investor," is what economists call the life-cycle theory, which dictates that your asset allocation should be tied to your earnings power throughout your career.

Bernstein, 64, spoke with senior editor George Mannes; their conversation was edited.

There's a debate going on now among economists about how much exposure people should have to stocks. What made you weigh in?

It's almost like a political issue. There's a "right wing" of very smart, authoritative people who think that savers and retirees should be investing conservatively because stocks are so risky. And then there's a "left wing" of equally smart and authoritative people who believe the opposite.

I was trying to reconcile the two views. Plus, I wanted to deal with what happened in the 2008 financial crisis, which changed how people, myself included, think about risk.

How so?

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The worst retirement investing mistake

LONDON -- The last five years have been tough for those in retirement. Portfolio valuations have been hammered and annuity rates have plunged. There's no sign of things improving anytime soon, either, as the eurozone and the U.K. economy look set to muddle through at best for some years to come.

A great way of protecting yourself from the downturn, however, is by building your retirement fund with shares of large, well-run companies that should grow their earnings steadily over the coming decades. Over time, such investments ought to result in rising dividends and inflation-beating capital growth.

In this series, I'm tracking down the U.K. large-caps that have the potential to beat the FTSE 100 (UKX) over the long term and support a lower-risk income-generating retirement fund (you can see the companies I've covered so faron this page).

Today, I'm going to take a look atBG Group (LSE: BG.L) , the highly successful gas exploration and production company whose share price has risen by more than 400% over the last 10 years.

Gas futuresBG Group has thoroughly outperformed the FTSE 100 over the last 10 years, thanks to stonking outright growth that's been consistently reflected in its share price and dividends:

Total Return

2007

2008

2009

2010

Visit link:
Is BG Group the Ultimate Retirement Share?

SPRINGFIELD, Mass., Sept.4, 2012 /PRNewswire/ -- Massachusetts Mutual Life Insurance Company (MassMutual) announced today it has entered into a definitive agreement with The Hartford to purchase its Retirement Plans business, a prominent small to mid-sized retirement plan provider. This transaction will significantly increase the size of MassMutual's retirement business and strengthen its position as a leading retirement plan provider.

The purchase price is $400 million, subject to adjustment at closing. The transaction, which is subject to regulatory and other approvals, is expected to close by the end of 2012.

"This acquisition represents an important step for MassMutual and underscores our long-standing commitment to the retirement market. Following the closing of the transaction, we look forward to combining the best of our two organizations to offer enhanced capabilities and greater overall value across a broader retirement market," said Roger Crandall, Chairman, President and CEO, MassMutual. "Our Retirement Services Division has experienced record growth in recent years and is an important contributor to MassMutual's overall profitability and success. This transaction enables us to accelerate growth into new sectors, add complementary distribution capabilities, and nearly double the number of retirement plan participants we serve."

Under the leadership of Elaine Sarsynski, Executive Vice President and head of MassMutual's Retirement Services Division and Chairman and CEO of MassMutual International LLC, a plan will be implemented to ensure an orderly integration of this acquisition over the coming year.

"Today's announcement recognizes the strength of The Hartford's Retirement Plans business and the innovation, dedication and talent of the team," said The Hartford's Chairman, President and CEO Liam E. McGee. "The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy. With The Hartford's sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value."

MassMutual's Retirement Services Division offers a full range of products and services for corporate, union, nonprofit and governmental employers' defined benefit, defined contribution and nonqualified deferred compensation plans. With a strong focus on the mid-size market, it provides retirement plan services to more than 7,600 plans, serves more than 1.6 million participants, and has more than $66.2 billion in assets under management (as of June 30, 2012).

After the closing, the strong distribution network of The Hartford's Retirement Plans business among small to mid-size plans will complement and strengthen MassMutual's excellent position with mid-size to larger corporate plans. Additionally, The Hartford's Retirement Plans' tax exempt business, including its position as a top provider of governmental plans, will strengthen MassMutual's foothold in this segment. The Hartford's Retirement Plans business, which also provides administrative services for defined benefit programs and has $54.9 billion in assets under management (as of June 30, 2012), provides retirement plan services to more than 33,000 plans and serves more than 1.5 million participants.

Once the transaction is completed, the combined retirement businesses are projected to have approximately $120 billion in assets under management and 3 million participants.

"Importantly, this is a win-win for both MassMutual and The Hartford's Retirement Plans business, their clients, distribution partners and employees," said Ms. Sarsynski. "The addition of this business will enable us to broaden and deepen our product offerings and relationships with valued distribution partners. We look forward to welcoming the talented team of professionals at The Hartford's Retirement Plans business to MassMutual."

"In addition, clients from The Hartford's Retirement Plans business will benefit from MassMutual's industry leadership in many areas, including our participant communication and education programs, comprehensive tools that help plan sponsors and plan participants measure retirement readiness, and award winning customer service," Ms. Sarsynski continued. "Together, we will create enhanced value for our advisors and plan sponsors, and work collectively toward our goal of helping our participants retire on their own terms."

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MassMutual To Acquire The Hartford's Retirement Plans Business

HARTFORD, Conn.--(BUSINESS WIRE)--

The Hartford today announced that it has signed a definitive agreement to sell its Retirement Plans business to Massachusetts Mutual Life Insurance Company (MassMutual) for a cash ceding commission of $400 million, subject to adjustment at closing. The sale, which is structured as a reinsurance transaction, is expected to close by the end of 2012, subject to regulatory approvals and satisfying other customary closing conditions.

Todays announcement recognizes the strength of The Hartfords Retirement Plans business and the innovation, dedication and talent of the team, said The Hartfords Chairman, President and CEO Liam E. McGee. The agreement marks the second of three planned business sales as we continue to make good progress executing on our strategy. With The Hartfords sharper focus on its historical strength in insurance underwriting, along with efforts to improve expense efficiencies, increase capital generation and reduce market risks, we are on the right path to deliver greater shareholder value.

The Hartford expects the transaction to have no material impact on its GAAP financial results and to benefit net statutory capital by approximately $600 million, including the ceding commission and a reduction in required risk-based capital, on closing. The estimated GAAP and statutory financial impacts are based on June 30, 2012 values and are subject to change based on final adjustments, market conditions and financial results through closing date. These impacts are expected to be recognized in the quarter in which the transaction closes.

The Hartfords Retirement Plans business is primarily a defined contribution business with $54.9 billion in assets under management as of June 30, 2012. The business serves more than 33,000 plans with more than 1.5 million participants, and has a strong presence in thesmall to mid-sized corporate401(k) and tax-exempt markets. It also provides administrative services for defined-benefit programs. As a result of the agreement, The Hartfords Retirement Plans employees will become part of MassMutuals Retirement Services Division.

This acquisition represents an important step for MassMutual and underscores our long-standing commitment to the retirement market.Following the closing of the transaction, we look forward to combining the best of our two organizations to offer enhanced capabilities and greater overall value across a broader retirement market, said Roger Crandall, Chairman, President and CEO, MassMutual.Our Retirement Services Division has experienced record growth in recent years and is an important contributor to MassMutuals overall profitability and success. This transaction enables us to accelerate growth into new sectors, add complementary distribution capabilities, and nearly double the number of retirement plan participants we serve.

As part of the agreement, The Hartford will continue to sell new retirement plans during a transition period, and MassMutual will assume all expenses and risk for these sales through a reinsurance agreement. Between now and the close of the transaction, there are no planned changes with respect to the day-to-day interactions or processes between The Hartford and its Retirement Plans distribution partners, plan sponsors and customers.

The Hartford's financial advisors for the divestiture are Greenhill & Co. and Goldman, Sachs & Co., and the companys legal advisors are Sidley Austin LLP.

About The Hartford

The Hartford Financial Services Group Inc. (HIG) is a leading provider of insurance and wealth management services for millions of consumers and businesses worldwide. The Hartford is consistently recognized for its superior service, its sustainability efforts and as one of the world's most ethical companies. More information on the company and its financial performance is available at http://www.thehartford.com.

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The Hartford To Sell Retirement Plans Business To MassMutual