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 over the long term and support a lower-risk income-generating retirement fund (you can see the companies I've covered so far on this page).

Today, I'm going to take a look at Aviva (LSE: AV.L) (NYSE: AV) , a high-yield favorite with some Fools and the U.K.'s only composite insurer (it sells life insurance and general insurance).

Premium performance?Aviva currently offers an outstandingly high yield of 8.1%, something it has in common with its peer RSA Insurance Group. The reason for this is that both shares have chronically underperformed the FTSE 100 over the last 10 years, despite remaining profitable and paying solid dividends:

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Is Aviva the Ultimate Retirement Share?

When we get to a certain age -- kids launched or launching, our own parents frail or gone from us -- its only natural to start wondering about how the years are going to go and what we will do with the rest of them, along with where we will do it.

Kings Point, a documentary directed and produced by Sari Gilman, makes you think even harder about those questions. It features five people who years ago did what many older Americans choose to do: pull up stakes and move to a retirement resort where they can dance, play golf and cards or enjoy a broad array of other activities and hobbies cheek by jowl with other retirees.

But the years have rolled on for Jane, Mollie, Gert, Bea and Frank, and the times are no longer as easy and happy at Kings Point as they were when they first moved to Florida.

Frank is passing his days with Bea but wants to find someone younger. Gert is adamant that she will not move in with her children -- and doesnt think they would want her to anyway. Mollie, who came to Kings Point with her now-deceased husband after he had a heart attack, regrets that she ever left New York. The five people talk about how hard it is to foster deep friendships where they live, whether they could ever fall in love again and how people at Kings Point keep their illnesses to themselves.

People in Los Angeles can watch the short film through Thursday at the Laemmle NoHo7 as part of the International Documentary Assn.s DocuWeeks 2012 program.

I spoke with Gilman about the film, which is dedicated to her grandmother Ida Gilman. Heres some of the interview, edited down for length and clarity.

Why did you decide to make the film?

My grandmother lived [at Kings Point] for 30 years and I visited her from the time I was about 9. I When I was younger, I was really fascinated by the place -- it seemed like summer camp for old people.

[But over time things shifted:] I saw a lot of loneliness, and I saw a lot of people staying in and not going out as much. If you had your health, that kind of made you popular. And if you didnt, people stopped coming by. I would hear people at the pool sort of whispering, Oh, Ida -- shes going down.

All of a sudden, everyone was going to the doctor instead of going to the clubhouse, but people didnt want to hear the other person complain. I imagined there was a lot going on internally with the residents there, but they didnt have an opportunity to talk to each other about it.

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Retirement resorts don't look so rosy in documentary film

The governments central personnel agency says that allowing federal employees to phase into retirement is one of its important goals and it will make the option available as soon as possible.

However, participation will be entirely voluntary for both employees and their employing agencies, and certain categories of workers will be excluded, the Office of Personnel Management added in a fact sheet it recently sent to agencies.

Under phased retirement, an agency will be able to offer employees who are retirement-eligible the choice of switching to part-time work. They would draw a partial salary and a partial annuity, both prorated according to the time worked.

Phased retirement had been proposed for years as helping employees interested in cutting back on their work schedules rather than retiring fully, while the government would continue to benefit from their expertise. The law envisions that phased retirees would spend a fifth of their working time mentoring younger employees.

The authority was enacted as a cost-saving part of an unrelated bill signed last month, but the option will not be available until OPM issues implementing rules. OPM has not released an expected start-up date.

Under the traditional law in effect until then, when federal retirees return to work for the government they continue to receive their full annuities, but their pay generally is reduced by an equal amount. Limited exceptions allow for full receipt of both.

An effective phased retirement plan has been a long-sought goal. However, under prior law, the problem was that an individual who was retirement-eligible but wished to continue employment on a part-time basis generally had little economic incentive to do so because an employees potential retirement benefits would often be equal to or greater than their salary would be for part-time employment, OPM said.

While the law authorizing phased retirement would allow retirees to work between one and four days a week on average, OPM told agencies that at the outset, at least, only half-time work will be allowed.

Phased retirement will be available only to those who meet standard retirement eligibility rules and who also had been working full-time for the three previous years. Employees who are subject to mandatory retirement will be excluded; most of them work in law enforcement, air traffic control and firefighting.

Phased retirees will be treated as employees for purposes of health and life insurance coverage and survivor benefits, OPM said. When they decide to retire fully, their annuity benefits will be paid in full, with increases reflecting their additional working time.

Continued here:
Plan would allow federal workers to phase into retirement

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 far on this page).

Today, I'm going to take a look at SABMiller (LSE: SAB.L) , the South African brewing giant with a global footprint and ownership of brands including Peroni Nastro Azzurro, Grolsch, and Miller Genuine Draft.

I'll have a lagerSABMiller's main product is lager, the market for which is expanding rapidly, thanks to the world's emerging economies. Over the last 10 years, SABMiller has beaten the FTSE 100 hands-down:

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Is SABMiller the Ultimate Retirement Share?

Updated: August 13, 2012, 4:57 PM ET

SAN BERNARDINO, Calif. -- UCLA middle linebacker Patrick Larimore will take a medical retirement because of multiple concussions, coach Jim Mora said after practice Monday during training camp at Cal State San Bernardino.

Larimore, a senior who was a team captain last season, suffered a concussion in April and sat out the latter portion of spring practice. He returned for the first two days of training camp, but had another concussion Aug. 6 and hasn't been back since.

He left camp to be examined by doctors at UCLA, then came back and informed his coaches and players of his decision Sunday night.

For the latest news on UCLA, check out ESPN Los Angeles' blog on the Bruins. Blog

"After talking it over with the doctors and talking it over with his family and the way he felt, he felt that for his future heath and long-term health that he should medically retire," Mora said.

"Obviously it was a very tough decision for Patrick and a very tough decision for this team. Patrick was very mature in his decision and gave it a lot of thought. He didn't get captured in the moment and only thinking about the here and now."

Larimore, 6-foot-2, 250 pounds, was a starter since his sophomore season. He was the team's defensive MVP last season after leading the team with 81 tackles. As a sophomore, he was named the Nagurski defensive player of the week after registering 12 tackles in a game against Houston.

He was the defensive leader on the field, calling out the plays and formations, but was equally important off the field as a high-character peer who kept his teammates in line.

"On the field, off the field, in the locker room, from snap to whistle, it's hard to replace a Patrick Larimore," Mora said. "It's really hard to replace that intensity, that passion, that commitment to the game."

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UCLA LB Larimore chooses medical retirement

Retirement planning is often focused on investing for retirement. But saving during retirement is part of the big picture as well. Many soon-to-be retirees are finding they may be a little short on post-retirement funds. With yields low throughout the U.S., they may have to rely on savings strategies in their leisure years.

To get a better handle on retirement planning in today's environment, we spoke with Sheila Handy, Ph.D., department chair and associate professor of business management at East Stroudsburg University. Professor Handy gave us some insight into retirement planning and how retirees can stretch their dollars.

Is it financially smart to set a retirement date when retirement planning?

Yes, individuals should set a specific retirement date. Rather than always thinking there will be more time to contribute to a retirement plan, setting a date allows you to estimate how much in Social Security benefits you will receive. You should carefully review your Social Security statement every year. It also allows you to know how many more years you can contribute to your employer retirement plan or (individual retirement account), and it provides a window for improving your current financial situation -- paying off your home mortgage and other debts.

What is the ideal amount needed to retire in 2012?

A rule of thumb used in retirement planning is that 70% of pre-retirement income is required to maintain the same lifestyle, since individuals spend less on taxes, commuting costs and likely expenses related to raising children. The same amount -- adjusted for inflation -- will likely be needed for 25 years (unless Social Security benefits are reduced). In either case, paying your mortgage and eliminating all credit card debt is beneficial.

For the person who wants to travel during retirement, what tips can you give him to live out his dreams of being a world traveler and financially stable?

Retirees can travel more affordably by planning trips during the off-season to take advantage of lower rates and airfares and by capitalizing on the flexibility in their schedules. (They can do this) by taking advantage of last-minute deals offered by airlines and travel sites. Staying in a condo and cooking your own meals may prove to be more affordable than staying in a hotel and eating out for one to two weeks. Some people trade houses with another retiree by using websites that connect individuals who are willing to exchange homes for one or two weeks. If travel is important, it should be built into the retirement budget. Other ways to travel more affordably include low-cost national park passes for seniors, 15% Amtrak discounts, Elderhostels and AARP discounts.

When pre-retirement expense planning, what are a few ways toreduce monthly costs and save more money for retirement?

Pre-retirement expense planning should include eliminating debt and cutting down on nonessential expenditures like eating out and buying coffee. Add any money not spent to savings. If you record every expenditure made in a two-week period, you would probably discover many ways to cut your current spending.

Link:
Taking Control of Your Retirement Planning

Video Link: https://www.youtube.com/watch?v=fG3CeGdIOME

10-08-2012 08:08 Save for Retirement or Pay Down Debt? from Money Talks News. Like this? Watch the latest episode of Money Talks News on Blip! Youapos;d like to pay off your high interest credit card, but you also need to save for retirement. Which should you do first? See all episodes of Money Talks News Visit Money Talks News's series page

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Save for Retirement or Pay Down Debt? - Video

If you thought that Americans as a whole were unprepared for a secure retirement, you should see the ones who have lost their job.

A report from the Transamerica Center for Retirement Studies finds many unemployed and underemployed workers have been dipping into their retirement accounts to fund their regular expenses. In addition, the retirement savings for many of those workers in their 40s and 50s is virtually non-existent.

A dire situation for displaced workers

The report, titled The Cracked Nest Egg, is part of the 13th Annual Transamerica Retirement Survey. Its findings paint a bleak picture for workers who lost their jobs during the recent recession.

"The Great Recession has led to a potentially devastating impact on the retirement outlook of American workers who have become unemployed or underemployed," said Catherine Collinson, president of the Transamerica Center for Retirement Studies, in a statement. "Many have raided retirement accounts to make ends meet -- and it will be difficult for them to overcome these savings setbacks once they regain employment."

Among the center's findings:

In addition, 30% report being without health insurance, placing their finances at risk should they have a medical emergency or serious illness.

Retirement savings: How low can they go?

Perhaps one of the most troubling aspects of the Transamerica report is just how little most displaced workers have in their retirement savings. The estimated median retirement savings for these households was $5,800. Among middle-age individuals, the amount was even lower.

As part of the study, median retirement savings were broken down by age:

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The Bleak Retirement Outlook for Displaced Workers

NEW YORK (TheStreet) -- I recently attended an educational session by Mitch Anthony, an author and retirement planning expert, which discussed thinking about retirement in a new way. Most people still view retirement as crossing a finish line because they have reached a certain age. This construct is based on our nation's industrial past when most workers performed physically demanding jobs. The paradigm then was you worked until age 65 when you were physically worn out and then you retired. The company you worked for would typically pay you a pension "for life." Unfortunately "for life" in the good old days might have only meant two or three years! Fast forward to our current U.S. economy: Most workers today are no longer engaged in physically demanding jobs. Instead most of us are engaged in intellectual or service-based work. So in today's world many of us are capable of working past age 65. For most people working past 65 is a better option than permanently retiring at an artificial age-based finish line. For individuals who work for compensation during retirement there are the financial benefits. Retirees who work part time during retirement can defer collecting social security until their full retirement age or even to age 70. Waiting to collect social security until at least your full retirement age results in a benefit 25% higher than starting at age 62. Another financial benefit of part time work is it might give a retiree access to health care coverage till they reach Medicare eligibility at age 65. Finally, the post-retirement income might allow the retiree to defer drawing down a portion of their retirement assets just a bit longer. Working past age 65 can be helpful for financial reasons but it goes deeper than extra money and doesn't have to be about compensation. If you are lucky enough not to need the money, volunteering at a not-for-profit is a valid form of work. Some non-financial benefits of working during retirement include: sense of relevance feeling of contribution and making an impact creativity competition for those who crave it connectivity to others The commonality among the non-financial benefits of working are that they all help with our emotional and physical well being. Working during retirement can also aid our cognitive health. The more we use our brains the healthier they are likely to be! The key to our second act work is engaging in work we find meaningful and that brings value to others. The great thing about it is we can define for ourselves what constitutes meaningful and provides value to others. In a nutshell, we can create our own personalized retirement job that works for us. I want to pass on two suggestions from Anthony when planning for your own retirement. The first is to write down how you plan to spend your 168 hours a week in retirement. If you are staring at an almost blank piece of paper you have got some work to do. The second idea is to get a mentor for retirement. Find someone you know who is doing retirement well, from your perspective, and engage them in a dialogue about how they did it. Remember, having enough "financial resources" to retire is only the first step towards a successful retirement. --By Michael Maye Michael Maye is the founder and president of MJM Financial Advisors (www.mjmfinadv.com), a registered investment advisory firm in Berkeley Heights, N.J. He is a member of the National Association of Personal Financial Advisors (NAPFA) and has been a speaker covering tax topics at NAPFA's national and regional conferences. Maye has also been a frequent contributor to the Star Ledger of New Jersey's "Biz Brain" and "Get With the Plan" articles. In addition to NAPFA, he is a member of Financial Planning Association, American Institute of Certified Public Accountants, New Jersey State Society of CPAs and the Estate Planning Council of Northern New Jersey.

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168 Hours a Week of Retirement? Better Get a Job

A recently published study by Jeff Hooke and Michael Tasselmyer of the Maryland Public Policy Institute took a look at the $37.6 billion Maryland State Retirement and Pension system. Their findings weren't pretty, but they are elucidating for both individual and institutional investors.

It wasn't all bad news. As usual, those advising the pension funds did spectacularly well. They reaped a whopping $221 million in fees for the fiscal year ending June 30, 2011. The hard working employees who are depending on the decent returns from plan assets fared poorly. According to the study, Maryland's returns trailed those of nearby states with June 30 fiscal years by about 1 percent each year. That might not seem significant until you convert this underperformance to dollars. It cost the plan $3 billion over the last 10 years.

The study correctly noted the current investment practice of most public pension systems. It is probably no different than the way you invest your personal assets. They go to a Wall Street firm that tells them they can "beat the markets", primarily by stock picking. They justify their hefty fees by claiming this expertise which, if it existed, would be very valuable.

The problem is there is precious little evidence that this expertise does exist. The study noted that during calendar year 2011, 84 percent of actively managed U.S. equity funds underperformed their benchmarks. It cited two other studies with similar results.

The authors looked at retirement plans in all 50 states. Total assets were a staggering $2 trillion. Total fees spent on Wall Street fees were $7.8 billion.

The conclusion and recommendation of the authors of this study will be familiar to readers of my books and blogs. Here it is: Buy index funds. That's it. By simply purchasing a globally diversified portfolio of low management fee stock and bond index funds in a suitable asset allocation (typically 60 percent stocks and 40 percent bonds for large pension plans), plan administrators could save the bulk of the outlandish fees they are paying for stock picking advice that often yields returns that underperform the index.

A more comprehensive study of the performance of state pension plans supports the conclusion of Hooke and Tasselmyer. This analysis looked at the performance of all state pensions plans for which there was publicly available data. Here's what they found: Over the 10-year and 23-year periods studied, all of the plans would have had higher returns with an index-based portfolio, with the stock portion tilted towards small and value stocks.

As Hooke and Tasselmyer correctly noted: "There is substantial evidence that Wall Street managers are unable to beat passive equity index funds that cost much less in fees."

It is unfortunate that participants in these state pension plans can do little to change the cozy system that rewards Wall Street at their expense. You are not similarly constrained when it comes to managing your own money. Fire your stock picking broker or adviser. Buy index funds. It's an easy fix.

Dan Solin is a senior vice president of Index Funds Advisors. He is the New York Times bestselling author of The Smartest Investment Book You'll Ever Read, The Smartest 401(k) Book You'll Ever Read, The Smartest Retirement Book You'll Ever Read, and The Smartest Portfolio You'll Ever Own. His new book, The Smartest Money Book You'll Ever Read, was published on December 27, 2011.

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The $7.8 Billion State Retirement System Rip-off