With all of the monumental challenges facing retirees, I sometimes wonder if retirement as we know it will survive. Many potential retirees are ill-prepared from a financial and non-financial perspective, and the clock is ticking. Maybe people will just work until they die, rather than attempt to exit the rat race and enter their second act. But theres also the possibility that these doom and gloom predictions are exaggerated and retirement will not be all that bad. Here are eights reasons your retirement will probably be just fine:

1. Average life expectancies have been trending upward for decades. In 1900, the average life expectancy was 46.3 years for men and 48.3 years for women. Today the average life expectancy in the U.S. is 79.6 years, while Japan leads all countries with an 83.2 year average.

2. For many people, retirement represents a time of opportunity. The majority (86 percent) of baby boomers between ages 45 and 65 who have a minimum household income of $75,000 view retirement as a whole new chapter in life and a chance to reinvent the person they are and will be, according to a 2011 survey commissioned by the resort real estate advisory firm Civano Living. And 90 percent of those surveyed believe retirement will give them time to pursue their interests and hobbies more fully. Retirees should be excited about this chance to journey down a different path and pursue what they are truly passionate about, rather than just existing.

3. The nature of work has changed from the physically demanding jobs of old. Todays knowledge workers use their minds more than their backs. When retirement age is reached, these seniors still have a lot of mileage left and can consider the possibility of a second career more along the lines of what they would like to do.

4. With 10,000 people reaching age 65 each day for the next 20 years, the impact of aging baby boomers is being felt far and wide. Senior citizens are a large portion of the population and have powerful organizations like AARP behind them. They are a highly influential group whose interests and impact cannot be ignored. Expect senior citizen voices to be heard and attention to be paid to their specific needs.

5. With longer life expectancies, many seniors see themselves living well beyond the official averages, continuing to remain productive, and developing deeper family relationships. According to a 2011 SunAmerica Financial Group and Harris Interactive survey, two-thirds of adults age 55 and older say their personal goal is to live to 100.

6. With aging comes challenges to health and well being. However, 82 percent of seniors are satisfied with their own physical health, according to the Civano Living survey. And 84 percent of those ages 45 to 65 say they are interested in health and fitness programs designed for them.

7. The years of experience and knowledge gained in the working world will make seniors increasingly more important in the job arena. Older workers are, in fact, not more expensive to employ because their typically higher wages are based on experience rather than age, according to Peter Cappelli, coauthor of Managing the Older Worker: How to Prepare for the New Organizational Order. Changes will need to be made to adapt to the needs of older workers such as increased flex time, age-friendly work environments, and less forced retirement when the worker has many good years still to offer.

8. It turns out that the adult brain is not a slower version of the youthful brain. Instead, the middle-aged brain maintains many of the abilities of youth and even acquires some new ones. The Seattle Longitudinal Study showed middle-aged adults performed better on four out of six cognitive tests than those same individuals did as young adults.

Retirement will be a big change from the way of life we were accustomed to while we were in the workforce and raising a family. We need to prepare financially and socially if we are to realize the fulfilling retirement we want. But it is encouraging to see that retirement can be an exciting, positive time in our life, even for those with modest incomes.

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8 Signs Your Retirement Will Be Just Fine

(MoneyWatch) This post continues my series on various retirement income offerings that are being introduced in 401(k) and other defined contribution retirement plans. Today we'll take a look at Income +, the retirement income service offered by Financial Engines.

Founded by Nobel Prize winner Bill Sharpe, Financial Engines is well-known as the financial advisory service that's available on the platforms of many 401(k) plan administrators. Since 1996, Financial Engines has provided online advice to 401(k) plan participants. These services help participants decide how much they should save to reach reasonable retirement savings targets and how to allocate their accounts among the investment funds offered in their 401(k) plans. In addition, participants can elect to receive professional management services, which monitor their retirement savings and progress toward retirement goals, periodically re-balance the investments in their accounts, and prepare personalized retirement plans.

In January 2011, Financial Engines introduced Income +, an extension of their professional management service. Income + isn't a product, such as an annuity or managed payout fund. It's a service that helps plan participants turn their 401(k) balances into monthly retirement income that can last for life. During your retirement, you stay invested in the funds offered by your employer's 401(k) plan, and Financial Engines helps you manage your account balances to generate a retirement paycheck.

401(k) retirement income options coming your way Retirement income review: Hueler Income Solutions Retirement income review: GLWB in retirement Rolling your 401(k) to an IRA? Think twice

With its Income + service, Financial Engines can help you in the years leading up to retirement by developing an asset-allocation strategy that manages your exposure to stock market fluctuations. The goal is to prevent your retirement plans from being thrown off track due to stock market crashes just before your retirement. The services also provides estimates of your retirement income at various retirement ages to help you decide when you can retire.

When you retire, your savings are then divided into three pots. The first generates a retirement income until an advanced age, typically age 85; it's invested in fixed income funds -- either bond funds or stable value funds -- in your 401(k) plan. This pot equals roughly 65 percent of your 401(k) account when you retire.

The second pot equals about 20 percent of your account when you retire and is invested in equity funds in your 401(k) plan. The intent of this account is to provide boosts in your retirement paycheck until age 85 to help your income keep pace with inflation.

The third pot equals about 15 percent of your account when you retire and is invested to serve as a reserve you could use to purchase a lifetime annuity at age 85. The goal is to protect you if you happen to live longer than expected.

Currently, the initial annual income you'll receive if you retire at age 65 is a little less than four percent of your total account balance, not much different from the "four percent rule" that's advocated by many financial advisors.

Financial Engines charges between 0.20 percent and 0.60 percent of your accounts for their services, depending on the arrangement it has with your 401(k) plan. Its charges are roughly one-third to one-half the charges typically assessed by personal financial advisors, who charge a percent of assets under management.

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Retirement income review: Financial Engines

Most retirees face the same conundrum: how to spend down assets without completely depleting them. One popular strategy is to apply the 4% rule -- withdraw 4% of your initial retirement balance and adjust the dollar amount annually to keep pace with inflation. Another rule of thumb is to spend only your portfolio's interest and dividends.

[More from Kiplinger: Quiz: Are You Saving Enough for Retirement?]

Some academics aren't fans of either strategy. A retiree who spends only his interest and dividends may load up on, say, bank stocks -- and that's "the tail wagging the dog," says Anthony Webb, research economist at the Center for Retirement Research at Boston College. Leaving the principal untouched may fit with a desire to leave money to heirs, but it could put a crimp in your lifestyle.

As for the popular 4% rule, it doesn't respond to actual investment returns, Webb says. Retirees drawing fixed dollar amounts from a sinking portfolio will soon run into trouble.

The RMD strategy. A third option may work better for many retirees: Base annual spending on the required minimum distribution rules that apply to traditional IRAs after you turn 70 1/2. Retirees of any age can use RMD calculations as a spending guidepost by simply dividing their total year-end portfolio balance by the life-expectancy factor listed for their age in IRS Publication 590.

[More from Kiplinger: 10 Things You Must Know About Social Security]

In a recent study, Webb and coauthor Wei Sun, of China's Renmin University, found that the RMD strategy outperformed the spend-the-interest strategy and the 4% rule, given a typical retiree's asset allocation. Because the RMD approach calculates the annual withdrawal as a percentage of the remaining portfolio, it is calibrated to investment returns. And the withdrawal percentage increases with age.

The strategy isn't perfect. It may result in withdrawal rates that are too low, particularly early in retirement, causing retirees to leave behind money that they might have preferred to spend. But if we're entering an extended period of low returns, as many advisers predict, you may want to err on the side of conservative spending rates.

[More from Kiplinger: State-by-State Guide to Taxes on Retirees]

A hybrid approach. Although no simple rule is ideal, retirees may incorporate an RMD-inspired strategy into a broader plan for covering expenses. A 2010 Vanguard Group paper, for example, found benefits from combining an inflation-adjusted immediate annuity with an RMD approach. This strategy produced stable cash flows that grew at a faster rate than those produced by other rules of thumb.

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Don't Run Out of Money in Retirement

Video Link: https://www.youtube.com/watch?v=Qyt07xUqKhE

17-07-2012 08:53 Jalen Rose and Stephen A. Smith discuss Kobe Bryant's comments about retiring after two more seasons.

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Buy Or Sell: Kobe Retirement - Video

Retirement and marriage after 60: Wedding preparations

Getting married again? Experts say brides and grooms older than 60 would be wise to include a visit to an estate planner as part of their wedding preparations to iron out the financial details of the new union.

"People think estate planning is for very wealthy people," says Larry Luxenberg, a financial adviser with Lexington Avenue Capital Management in New City, N.Y. "But neglecting to plan can cause conflict after one partner's death."

A prenuptial agreement, adds Jillian Nel, a Certified Financial Planner at Legacy Asset Management in Houston, Texas, can save survivors a lot of heartache.

Getting your financial future in order is a great way to strengthen a new relationship. Having these discussions early "makes the marriage a lot more positive," Nel says, "and you can concentrate on being happily in love again."

For those collecting Social Security benefits, a number of issues need to be considered, Luxenberg says -- particularly if either or both partners have been married before. "New couples who are already retired might think the die is cast," he says, "but there are still lots of considerations."

For example, most widows older than 60 have the option to continue to collect survivors benefits or to draw benefits based on their own income or that of their new spouse. But if the wedding takes place before her 60th birthday, she loses the survivor-benefit option.

For a bride older than 65, says Nel, Medicare payments can also be affected.

"Medicare is means-tested," she says, meaning that premiums for some benefits increase according to a person's ability to pay. "So if you are marrying someone with a lot of unearned income, talk with an accountant about multiyear tax planning."

Given the complexity of Social Security regulations, Nel says, checking with an expert before saying "I do" is a smart strategy. "There are some quirky issues that could come up."

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Retirement and marriage after age 60

Rob Russell

What if everything you were told about saving in your company retirement plan was bogus? What if the benefit of tax-deferred growth in your mutual fund based retirement plan was really a well-funded Wall Street marketing gimmick?

For decades now, you and I have been told to sock away our hard-earned money into 401(k)s, IRAs, 403(b)s, TSPs, etc. to reap the benefits of tax deferral and to just trust the system. Advisors, tax preparers, and CPAs jumped onto this Wall Street bandwagon of letting your money grow tax-deferred until you retire. The crux of their seemingly logical-sounding argument was that youd be in a lower tax bracket in retirement, thus kicking the tax can down the road.

[When to Change Investing Strategies.]

Were they right? Would paying the tax later in retirement be better? Or, was it just a big marketing gimmick for you to buy into the mutual funds peddled by Wall Street?

Would you agree the answer depends on future tax rates? Future tax rates are almost as unpredictable as future market prices. I think, however, an argument can be made that future tax rates will eventually be higher than todays historically low tax rates simply because they have to be (thanks to the national debt, deficits, Social Mecurity and Medicare imbalances, etc.)

Consider todays retiree or soon-to-be retiree. A middle-class married couple making $65,000 per year is currently in the 15 percent bracket. If this couple is currently contributing to their 401(k), in essence they are deferring the payment of taxes at a 15 percent rate. In only five short months (under current law) they will be in a 28 percent bracket, almost double their current rate. If they plan to retire in 2013 and intend to live off of Social Security, a pension, or investment income they will actually be in a higher tax bracket. Given this example, did kicking the tax can down the road actually work for them or will they actually be subjected to higher taxes during their retirement?

[Find top-rated mutual funds.]

This big retirement lie could be harmful to retirees and soon-to-be retirees because they will live on less since they will be paying the government more, but it could actually work well for their younger counterparts contributing to their retirement plan. Heres how:

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The Big Retirement Lie

HARTFORD, Conn., July 19, 2012 /PRNewswire/ --The retirement income market represents a unique opportunity for insurers to realign their solutions to meet an evolving consumer need, according to a new study by Conning Research & Consulting.

"Life and annuity insurers have been helping individuals amass assets in preparation for retirement. At the end of 2011, for example, individual and group annuities held 46 percent of all defined contribution plan assets. Beyond annuities, however, we estimate there was an additional $7.3 trillion in combined IRA and defined contribution plan assets. Now, insurers have a growing opportunity to help individuals turn those assets into retirement income," said Scott Hawkins, analyst at Conning Research & Consulting. "Of course, these assets are attracting other competitors, primarily mutual funds who've also helped investors accumulate retirement assets, and insurers need to respond to that competition. However, turning those assets into a secure income stream for retirees requires managing investment volatility and longevity risk. Managing those risks plays to the natural competitive advantage insurers have over their competition."

The Conning Research study, "The Big Payout: Growing Individual Retirement Income Opportunities" brings the opportunity associated with retirement income solutions into focus and analyzes the challenges that insurers face in planning for the growth in the retirement income market.

"As life-annuity insurers look to the future of the retirement income market, the path to growth involves careful strategic planning," said Stephan Christiansen, director of research at Conning. "Our analysis highlights the need for insurers to meet the competitive challenge represented by the mutual fund industry, and refine their messaging to the retiree and pre-retiree segments. Adding to the competitive marketing complexity, insurers also face substantial investment issues related to these products, and statutory capital constraints. Yet those insurers that succeed in meeting these challenges may be positioned to enjoy their largest growth opportunity over the coming decade."

"The Big Payout: Growing Individual Retirement Income Opportunities" is available for purchase from Conning Research & Consulting by calling (888) 707-1177 or by visiting the company's web site at http://www.conningresearch.com.

About Conning Research & Consulting

Conning Research & Consulting is a division of Conning, a provider of asset management and insurance industry research and consulting services to insurers. Conning Research & Consulting has published independent insurance industry research for 50 years, including market coverage of 30 segments of the industry in addition to industry forecasting and identification and analysis of major strategic issues. As a result of its wealth of experience and intimate knowledge of the insurance industry, Conning understands industry challenges and opportunities and provides in-depth analyses on a wide range of industry products and issues. Conning is headquartered in Hartford, CT.

Contact: Anne Steinberg Kitchen Public Relations, LLC 212-687-8999 anne@kitchenpr.com

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Conning Research: Retirement Income Market - A Significant Growth Opportunity for Life-Annuity Insurers

DALLAS, July 18, 2012 /PRNewswire/ -- Cathy DeWitt Dunn, president of Dallas Fort Worth-based financial services company, DeWitt & Dunn, LLC, and host of the syndicated radio show, Safe Money Talk Radio, has words of encouragement for teachers regarding their retirement accounts. Texas teachers can choose to say no to falling portfolio values and high fees by taking control of their 403(b) retirement plans. Today's Texas teachers have the option of moving their 403(b) monies from variable annuity ownership into fixed index annuity ownership.

A 403(b) is the teaching profession's equivalent of a 401(k) investment plan. Nearly 80% of all 403(b) money is tied up in annuities, with the majority in variable annuities. Variable annuities were particularly popular in the 1980s and 1990s during times of strong market growth. Variable annuities provide exposure to market upside but do not offer principal protection or performance guarantees.

"Variable annuities made sense for some investors when markets were going strong," said DeWitt Dunn. "However, markets don't always go up. In fact, we've seen two 50% stock market drops since 2000 that have taken a toll on millions of Americans' retirement accounts. Many investors, including teachers, are now demanding options that offer principal protection, performance guarantees, and the potential for growth. For teachers and their 403(b)s, a fixed index annuity offers these benefits and more."

As part of a 403(b) retirement plan, a fixed index annuity provides the opportunity to participate in stock market gains. However, unlike a variable annuity, the account's principalincluding any gains made from contributions, bonuses, or positive stock market performanceis locked in and 100% protected by the insurance company against any losses. Fixed index annuities havealso eliminated the feesinvolved with variable annuities, which may make them a less expensive option for a retirement income solution.

Many Texas Teachers do not know they are allowed to move their existing 403(b) account to a safe alternative, and that doing so is a non-taxable transaction. DeWitt Dunn is currently working with plans that provide up to a 5.5% matching bonus on all contributions. Once enrolled in a 403b plan driven by a fixed index annuity, teachers may contribute into the plan via a payroll deduction on a continuing basis.

"Over the past year, we've helped teachers across Texas protect their 403(b) retirement accounts from market instability and losses by moving them out of variable annuities," said DeWitt Dunn. "If you're a teacher, protecting your retirement nest egg while still benefiting from market upside can be accomplished by completing some fairly simple home worknamely choosing a safe, high quality fixed index annuity for your 403(b)."

Additional information specifically for teachers and 403(b) retirement income planning may be found by visiting http://www.annuitywatchusa.com/just-for-teachers.

About DeWitt & Dunn, LLC DeWitt & Dunn, LLC is proud to be on the forefront of innovative financial solutions for retirement income planning. The company specializes in helping individuals and families strengthen their retirement outlook with lifetime income solutions not available from traditional brokerage houses. DeWitt & Dunn has helped thousands of people start their personal journeys towards a stronger retirement with strategies designed to protect principal, generate retirement income that can't be outlived, and eliminate market loss. Additional information on DeWitt & Dunn and Annuity Watch USA may be found by visiting http://www.annuitywatchusa.com

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Retirement income planning expert Cathy DeWitt Dunn urges Texas teachers to understand their 403b product options when ...

By Allison Linn, TODAY

The tight job market has taken a serious toll on some peoples retirement plans, forcing many to withdraw money set aside for their golden years early despite the potential for stiff penalties.

A new survey from the Transamerica Center for Retirement Studies finds that about one-third of people who are unemployed or underemployed and have a retirement account have withdrawn money from that account.

Thats despite the widespread knowledge that such a withdrawal could carry a stiff penalty if the person is under 59- years old.

Whats more, many unemployed and underemployed people reported having very little money set aside for retirement.

Transamerica used a Harris panel of 621 people who were either unemployed or underemployed for the survey. A person was defined as underemployed if they were working part-time because they couldnt find a full-time job or had a full-time job but still considered themselves to be less than fully employed.

The data suggest that some younger people are dipping into retirement savings even though that can lead to costly penalties and fees. The researchers also looked more narrowly just at people who were under 60 years old and had a retirement account with their most recent employer. More than four in 10 of those people said they had taken a withdrawal.

The unemployed and underemployed workers also reported very little savings for retirement. The Transamerica survey found that the median household savings in retirement accounts was just $5,800. The figures included people who hadnt saved anything at all.

The respondents in their forties and fifties had the lowest median retirement savings of $2,300. Those in their twenties had a median savings of about $10,000, and those in their sixties had a median savings of $47,000.

Have you had to dip into your retirement accounts early?

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Many of jobless dipping into retirement savings

BLOOMFIELD HILLS, Mich., July18, 2012 /PRNewswire/ -- A new generation is redefining retirement by diving into high-energy activities and seeking new experiences from motorcycle riding and hiking to kayaking and white-water river rafting.

The nation's premiere active adult community builder reports that high-energy clubs and activity groups are gaining popularity across the nation, with health and fitness emerging as a top interest among both Del Webb residents and prospective homebuyers.

"Recreational interests among Baby Boomers are more diverse than ever before. Sure, golf and tennis are still popular, but now so are outdoor adventure activities like canoeing and kayaking, marathon running, rock climbing, off-roading and even sky diving," said Judy Julison, Del Webb's national director of lifestyle. "I've worked in the industry for more than 30 years and have never seen a more diverse group of people with so many varying interests."

Julison added that expectations about age, vitality and quality of life continue to be redefined and emphasize the importance of physical activity for many Del Webb residents. Advancements in health care and improved access to wide variety of fitness and wellness oriented programs have contributed to promoting improved health and extending life expectancy. Boomers feel years younger than their chronological age and this typically is reflective of their active lifestyle, she said.

According to the most recent Del Webb Baby Boomer survey, 80 percent of Boomers indicated that they feel younger than their current age. More specifically, younger Boomers, age 50, said they feel 10 years younger, Boomers in their early 60s said they feel 13 years younger and Del Webb residents with a median age of 65 said they feel 15 years younger than their actual age.

"Baby Boomers enjoy 'experiences,' rather than just 'activities.' They are also known to go to great lengths to resist the realities of aging," Julison said. "Our Del Webb residents are constantly seeking new, active and high-energy activities that can be incorporated into their everyday life, that also allow them to socialize and have fun. They are often motivated by a simple desire to try something new or to engage in an experience that challenges them physically and mentally."

With 73 percent reporting they exercise regularly, Del Webb residents are embracing more health-oriented and fitness activities. This is also reflected in the residents' requests for new group fitness classes, organized sporting events and increased attendance at the communities' fitness centers.

Seeking more adventure activities is definitely in line with Jack Burch's idea of retirement, as he regularly participates in motorcycle rides. Jack, 58, a Carolina Preserve by Del Webb resident, started riding a scooter when he was 10 because it was "easier than walking up the hill to fetch the cows." From there he rode dirt bikes and street bikes. "I gave up riding while raising five children but my wife and I have returned to it now that they are grown."

His wife Carol Burch, 55, also enjoys all kinds of rides in North Carolina and beyond from three hour rides to trips that are 300 miles a day for a week.

"Riding on the back seat just wasn't for me, so I took the class and got my own. Now when we go on trips whether they are three hours or 300 miles daily for a week, I am in control. I can smell those beautiful flowers on the side of the road and yes, also the cow dung," Carol says. "I look forward to each and every ride exploring new areas and absolutely love the mountain twisties. This is something we can do into our 80s."

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Baby Boomers Redefine Retirement With Adventure Activities