Prudential Retirement continues to grow its business of providing reinsurance for pension plans, adding its first client of the year and its second largest account since it started to offer coverage last year.

Hartford-based Prudential Retirement said Tuesday that it will provide reinsurance of longevity risk to Rothesay Life, a subsidiary of The Goldman Sachs Group Inc., for a pension fund involving a British food manufacturer. The transaction covers 423 million British pounds of pension liability, or about $665 million.

Prudential's deal with United Kingdom-based Rothesay Life secures retirement benefits, including life annuities, for 20,000 people covered in Uniq Plc Pension Scheme. Uniq Plc is a British manufacturer of chilled and prepared foods, including desserts, wraps, sandwiches, soups and sauces. Uniq announced in December that its pension plan would be insured by Rothesay Life. More than half of people in the plan have not reached retirement age.

Prudential offers longevity reinsurance coverage in case people in a pension plan live longer than anticipated by their pension trustee or the insurance company that provides annuities to guarantee funding that pension, said Amy Kessler, head of the Longevity Reinsurance business and senior vice president at Prudential Retirement.

"If they live a year longer, if they two years longer, if they live five years longer, we pay that incremental benefit," Kessler said.

The average time between retirement and death has increased in recent decades; between 1970 and 2008, the average rose from 13 years to 17.5 years, Kessler said. But the market for longevity reinsurance is still largely in Europe despite $2 trillion in private pension funds within the U.S., Kessler said.

In the past decade, market volatility and regulatory reforms have made it difficult for employers, or pension sponsors, to secure benefits for retirees. Efforts to manage risk led to a new business opportunity last year for Prudential Retirement, which is a subsidiary of Newark, N.J.,-based Prudential Financial Inc.

Global demand to transfer risk of pension plans will increase as plan sponsors look for ways to manage exposure to risk, Kessler said.

Prudential Retirement's largest longevity reinsurance transaction so far was announced in November, also with Rothesay Life and a sister company, Paternoster, which are both part of Goldman Sachs, for a different pension fund. That transaction at the time was valued at 450 million British pounds, or $723 million.

"We are happy to partner with Rothesay on another innovative Pension Risk Transfer transaction that helps to secure the retirement benefits of Uniq's members," Kessler said.

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Prudential Retirement Continues Growth Of Pension Reinsurance Business

Working part-time during your retirement years is a quick way to improve your finances. A part-time job could also be good for your social life and even your health, especially if you find a second career you enjoy. Here are seven reasons to consider working a part-time job in retirement:

You didn't save enough. Your finances might dictate that you work part-time during retirement. Many portfolios took a hit just before retirement, thanks to the financial crisis of 2008. But even if your portfolio is doing fine, you might simply not have a big enough nest egg to completely stop working during the early stages of your retirement. Consider your financial situation, and determine whether working part-time will help you stretch your retirement income a little further, providing you with a little more breathing room in your budget.

Delay claiming Social Security. Another reason to work part-time during retirement is to put off the need to take Social Security early on. The longer you wait to begin drawing on Social Security, the higher your monthly benefit will be.

Delay tapping your retirement savings. Working part-time can help those who retire early to avoid retirement account penalties. You can't withdraw money from your tax-advantaged retirement accounts prior to age 59 without incurring a 10 percent early withdrawal penalty. So, if you want to retire early, you can work a part-time job that you enjoy until you can start taking penalty-free distributions from your retirement accounts.

Better health. While the financial reasons for working part-time during retirement are certainly important, they aren't the only considerations. A 2009 study in the Journal of Occupational Health Psychology found that those who worked during retirement experienced better health than those who didn't. People with retirement jobs also suffer less from major diseases and disabilities. This is great for your quality of life, and it could lead to lower health care costs and a reduced chance that you will need long-term care.

Improve your social life. There are mental and emotional health benefits to working during retirement. The social interaction improves your mood, and can stave off depression.

Mental stimulation. There are indications that keeping your mind active with the help of a part-time job can hold memory-related problems at bay. If you choose a part-time job that you enjoy, such as a position that incorporates your interests or a hobby, the benefits are increased. You'll do something you love, get paid for it, and enjoy a boost to your social life.

Creative scheduling. You don't have to get a boring part-time job. Consider consulting, becoming a seasonal tour guide, or teaching classes at your local community education organization. Even if you don't need to work part-time for money in retirement, you could volunteer in your community for many of the same benefits.

Remaining active during retirement is a great way to ward off major ailments, as well as keep your mind sharp and prevent depression and anxiety from setting in. You can make new friends, earn some money, and generally improve your retirement situation.

Jeff Rose is a certified financial planner and U.S. combat veteran. He blogs at Good Financial Cents and Soldier of Finance.

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7 Reasons to Work Part-Time in Retirement

I'm 67 years old, retired and have $600,000 in investments. Will this be enough if I live to age 95? -- Judy

It's impossible to give a yes or no answer to your question because the length of time your nest egg will last depends on several factors, including how much you withdraw each year, how you invest and how sure you are that you can count on those withdrawals in the future.

A few online tools can give you a sense of the trade-offs involved. You can then come up with a plan for getting a reasonable amount of income from your investments without too high a risk of running through your money too soon.

One tool is Vanguard's Retirement Nest Egg calculator. Even though this tool uses a sophisticated forecasting technique know as Monte Carlo simulation, it's simple to use and interpret.

Begin by dragging the first of the tool's three sliders to specify how long you want your portfolio to last. Given today's long lifespans, you want to be careful not to enter too short a period. Your assumption of age 95, or 28 more years, seems sound.

Next, move the second slider to indicate the current size of your retirement portfolio -- $600,000 in your case. Then drag the third slider to show how much inflation-adjusted annual income you'd like. You didn't mention a figure, but let's assume $30,000 a year, adjusted for inflation.

Once you've done that, go to the portfolio pie chart at the top of the page and enter how you want to divvy up your retirement investments. I'd start with a moderate mix of 50% stocks-50% bonds. Click "Run Simulation," and voila!

How I'm easing into retirement

You'll get an estimate of the probability your nest egg supporting you for 28 years given the withdrawals and investment strategy you've chosen, or a 77% chance in this case.

You'll also see a graph showing a range of possible portfolio balances year by year over that 28-year span, forecasting what your portfolio's value might be in good and bad markets. Click on that graph, and it shows how rapidly the odds of your nest egg lasting tail off in the later years.

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Retirement investing

AUSTIN, TX--(Marketwire -03/02/12)- Individuals, couples and business owners approaching retirement age may think they've planned for everything.

They're probably wrong.

That was Dr. Robert Pokorski's message to an elite group of life insurance professionals in Austin this week. Speaking at Lion Street's invitation-only Designers Expert Network forum, physician and underwriting expert Pokorski highlighted the non-financial risks facing today's retirees. Among his warnings:

Pokorski -- recently profiled in a Smart Money cover story(7) -- holds an MBA from Heriot-Watt University in Edinburgh, Scotland. He earned his medical degree at Creighton University and has authored more than 130 scholarly articles for publications like Nature, Cancer, American Journal of Human Genetics and Yale Journal of Biology and Medicine. As The Hartford's chief medical strategist since 2010, Pokorski works to bridge the medical-business divide.

"We bring in top experts like Dr. Pokorski because our sophisticated advisor-owners need the latest information on underwriting trends," said Lion Street CEO Bob Carter. "Our carrier relationships give them access to the industry's brightest minds. Everyone leaves D.E.N. and our other meetings armed with valuable new ideas for today's competitive market."

The audience instantly saw opportunity. "As professionals, our job is to help people manage their risks," said Anthony Giordano, principal of Union Square Financial Partners and a Lion Street advisor-owner. Giordano shifted his New York firm's business to Lion Street last year. "The resources I get from Lion Street lead directly to peace of mind for my clients. I've gained a big edge over my competitors."

Giordano is in the vanguard of an underwriting revolution. Lion Street's extensive value-added services make cost-effective coverage possible in complex situations. "Our advisor-owners like Anthony have to deliver the best terms on large, complex cases," observed Carter. "With our network of resources, they can deliver state of the art solutions for affluent clients that demand the highest level of expertise and execution."

"This kind of open intellectual exchange is a big advantage," Carter concluded. "Unlike other producer groups, the interests of our advisor-owners are aligned through our unique capital structure. We all value the concept of idea exchange to work toward shared success."

ABOUT LION STREET: Lion Street, Inc. provides elite independent life insurance professionals access to the financial products, intellectual capital, and proprietary resources they need to meet the sophisticated needs of their high-net-worth and corporate clients. Over thirty advisor-owner firms nationwide have become part of the Lion Street network through its unique ownership structure. Founded by industry veteran Bob Carter in 2010, Lion Street surpassed its first year firm growth and revenue goals. It continues to actively recruit select firms in key geographic markets.

Lion Street is a portfolio company of Austin Ventures, a venture capital and growth equity firm with $3.9 billion of assets under management. To learn more about Lion Street, visit http://www.lionstreet.com.

Excerpt from:
"Expect Retirement Plan Surprises," Physician Tells Life Insurance Advisors at Lion Street Forum

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About a third of small-business owners do not have a personal or business-sponsored retirement plan such as a 401(k), a SEP IRA or deferred annuity, according to a new survey from non-profit the American College. Nearly the same number haven't estimated how much money they need for retirement.

Many workers feel unprepared for their golden years. But a lack of retirement planning by small-business owners is stunning because they "have no one else to rely on," says Mary Quist-Newins, director of the State Farm Center for Women and Financial Services at the American College.

Unlike government or company employees, who are eligible for 401(k)s or similar plans, small-business owners are often solely responsible for their retirement planning, she says.

And that can be a difficult task for a business owner who is already taxed time-wise. Saving for retirement falls to the bottom of the to-do list. "They are just so living in the moment," she says. "They are just trying to keep this (business) going." Other reasons business owners aren't better prepared for retirement:

Just surviving takes priority over saving. Businesses that are in the start-up and early growth phase often reinvest money into the firm, and don't put it into retirement funds, says Gary Kushner, CEO of human resources consulting firm Kushner & Co. And many owners even those of more mature businesses severed retirement funding during the downturn.

"Certainly when you're worried about your business surviving, you're not worried about funding your retirement," says Michael Preisz, an adviser with the non-profit Institutional Retirement Income Council.

They think the business will provide for their needs. Some owners solely plan on continued revenue from the business or proceeds from selling the firm to sustain them later in life. And there are those who prefer to rely on their business' returns rather than unpredictable stock and bond funds. But if the firm goes south, "They are left with nothing," Preisz says.

Setting up a company savings account appears daunting. Many haven't set up an employer-sponsored plan since the paperwork can seem time consuming and complex, Kushner says.

They don't consider retirement. Many entrepreneurs "love what they are doing and don't see the point of retiring," so they don't plan for it, says Patricia Greene, the Paul T. Babson Chair in Entrepreneurial Studies at Babson College. "It's hard for many of them to think what life would be like without (running) the business."

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Many Small Business Owners Aren’t Prepared for Retirement

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24-02-2012 05:58 And so begins the long drought. Hope you brought some water.

Link:
My Semi-Retirement - Video

ST. PAUL, Minn.--(BUSINESS WIRE)--

Financial advisors who look for opportunities to prove their value to retirement plan sponsor clients will find Securian Retirements new Client Servicing Calendar especially useful.

These days, with advisor fees under greater scrutiny, it's more important than ever for advisors to demonstrate the value they provide to plan sponsors, said Rick Ayers, vice president, Securian Financial Group, Inc. The Client Servicing Calendar helps advisors take advantage of the resources we offer and provide meaningful assistance to their clients.

The Calendar offers advisors suggestions for providing service to plan sponsors and participants. It's built around quarterly events, ensuring that advisor support will be both relevant and timely. It also includes links to the materials, tools and resources in Securians Shape practice management program including:

Securians team of sales and service specialists provide a range of assistance for advisors with all levels of involvement in the retirement plan market. More information is available at the Securian Retirement site for financial professionals.

Since 1880, Securian Financial Group and its affiliates have provided financial security for individuals and businesses in the form of insurance, investments and retirement plans. Now one of the nations largest financial services providers, it is the holding company parent of a group of companies that include Minnesota Life Insurance Company. Securian Retirement is a business unit of Minnesota Life Insurance Company.

DOFU 03-2012

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Securian Calendar Prompts Advisors to Reach out to Retirement Plan Sponsors

Video Link: https://www.youtube.com/watch?v=unco5qnNfJg

29-02-2012 10:00 On February 29, 2012, Congressman David Dreier, Chairman of the House Rules Committee, announced that he would not stand for reelection to the 113th Congress.

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Chairman David Dreier Retirement Announcement - Video

Video Link: https://www.youtube.com/watch?v=DxBqORmb8Ck

29-02-2012 11:17 http://www.euronews.net Brit flick 'The Best Exotic Marigold Hotel' is the story of a group of UK pensioners, who rather than retire to a Mediterranean beach resort, decide to head off to India for the good life. When they arrive, their retirement property is not as luxurious as they'd imagined. The film stars British comedy favourites Judi Dench, Maggie Smith and Bill Nighy alongside Slumdog Millionaire's Dev Patel.

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euronews cinema - British film reveals India retirement reality - Video

Let's say you have been working in your career for 20 or more years and are well compensated, but now you are having second thoughts about continuing down this path. Here are some signs that early retirement might be right for you:

[See 10 Important Ages for Retirement Planning.]

1. People with less seniority are doing a similar job to you. It's natural to take on more and more responsibilities as you gain seniority and get promoted. As you get paid more, your boss expects more productivity. If you take a look around your team meeting and see that you are the most senior member and getting paid the most, then it might be time to either take on even more responsibilities or perhaps move on.

2. Each Monday it is getting more difficult to come to work. You don't enjoy your job anymore and don't really like your co-workers. You are stressed all the time, which is affecting your mental and physical health. If this describes your situation, then it's time to search for an alternative.

[See 15 Ways to Tell if You Are Ready to Retire.]

3. You hit a plateau. Your career has hit the proverbial brick wall. Perhaps the next promotion requires something that you don't have, such as an extreme time commitment or stellar leadership skills. In today's corporate environment, all employees must keep evolving and grow. If you hit a plateau, other people will catch up and pass you by.

4. You want a career change. You are bored with your job and want to focus on other interests. We all know the grass is always greener on the other side, but sometimes we have to find out if it's true or not. If you have the knowledge, skills, and abilities to start your own business or if you want to simply try out another career, then it may be time to go it alone.

5. You have enough side income to cover your monthly expenses. If you have enough side income to pay the bills without the salary from your full-time job, then early retirement becomes a real possibility. Diligent investing in dividend stocks, rental real estate, bonds, and other income producing assets can give you this option in the long run. Even if the investment income does not fully cover the bills, you can freelance or work part time to make up the rest of it.

[See 5 Alternatives to Traditional Retirement.]

If you are miserable all the time at your job, and you feel as though you are unable to advance in your career or achieve work-life balance, perhaps it is time for a change. If your job fails to excite you and you have a significant amount of savings and investments, you should start to think seriously about your exit strategy.

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5 Signs You Should Consider Early Retirement