RADNOR, Pa., July 11, 2012 /PRNewswire/ -- There is new hope that Americans will be better prepared for retirement, thanks to automatic features offered through employer-sponsored retirement plans, according to a study just released from Lincoln Financial Group and Retirement Made Simpler. Part of the Lincoln Retirement Power research series, the survey explored plan sponsors' perspective on the value of automatic retirement plan features including automatic enrollment, automatic escalation and qualified default investment alternatives (QDIAs). The study found that 94% of plan sponsors recognize the success of automatic enrollment features in helping them address their plan-related goals and that these features drive higher participation and deferral rates along with better investment performance.

Other key findings include:

"Our Lincoln Retirement Power survey confirms what we intuitively believe. Automatic features are highly effective," said Chuck Cornelio, President, Retirement Plan Services, Lincoln Financial Group. "Employers who offer these features in their plans will help Americans take charge of their retirement. But just like any other plan design innovation, auto solutions do not mean you can simply set it and forget it. Employees need personalized and outcomes-based communication and education to meet their goals and boost their retirement readiness."

Despite these impressive results, according to the Plan Sponsor Council of America,[2] less than half of plan sponsors have adopted auto escalation and enrollment to date. The Lincoln Retirement Power study uncovered that while new communication channels have emerged since the advent of auto features, they have not kept pace with cultural and generational shifts or the evolution of plan design. Only 51% of sponsors say they offer customized communication and only half (50%) have revamped communication materials since the introduction of auto features.

Plan sponsors agree that employee communication must shift significantly when automatic features are adopted. That means moving away from education that is technical in nature - such as how to enroll or the investments offered - to engaging participants in a more meaningful discussion about their individual savings behaviors and strategies such as their future monthly retirement income, spending power and projected retirement lifestyle.

"Conversations need to be more personalized and address each employee's specific needs, goals and lifestyles," said Cornelio. "It's time to take a more proactive approach to how we plan for retirement, with more focus on the connection between our future goals and what it will take to get there."

The good news is that automated models are helping more people take steps to save for retirement. The strong combination of auto solutions plus outcomes-focused communication has the power to motivate people, in a positive way, to take an active role in their retirement readiness."

For more information on the Retirement Power study, visit http://www.lfg.com/retirementpower.

Survey Methodology The Lincoln Retirement Power Automatic Features Study is based on research conducted by Brightwork Partners, LLC for Lincoln Financial and Retirement Made Simpler. Researchers administered the survey by phone from February 8, 2012 to March 8, 2012. The research explored automatic retirement plan features from the perspective of 201 executives responsible for managing 401(k) and 403(b) retirement plans with assets of $10 million or more. Respondents had to have implemented at least one automatic feature, including: qualified default investment alternatives (QDIAs), automatic enrollment and/or automatic escalation. The survey sample is nationally representative of all 401(k) and 403(b) retirement plans with assets of $10 million or more offering at least one automatic feature (approximately 12,000 plans). To learn more about the Automatic Features Study, visit http://www.lfg.com/retirementpower.

About Retirement Made SimplerRetirement Made Simpler is a coalition formed by AARP, the Financial Industry Regulatory Authority (FINRA) and the Retirement Security Project (RSP). The coalition was created specifically to inspire and support employers who want to help their employees save more for retirement. By providing companies with the tools and information they need to automate their retirement plans, more Americans will achieve a safe and secure retirement. For more information, visit http://www.RetirementMadeSimpler.org.

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New Study Affirms Auto Solutions Boost Retirement Readiness

DES MOINES, Iowa--(BUSINESS WIRE)--

When it comes to boosting retirement savingsand ultimately retirement incomegood old fashioned face-to-face education is proving to make a significant difference.

According to a new analysis from the Principal Financial Group, employees who attend personalized, one-on-one sessions at the worksite take more positive actions including participating more and saving more.

Analysis shows that, over time, the higher deferral rate combined with the commitment to increase savings among those who attended one-on-one meetings could mean an additional $242,000 at retirementbased solely on employee deferrals. That could translate into an extra $905 more a month in retirement income1, which is 69 percent higher than participants who didnt have one-on-one education.

We know from face-to-face educational meetings that retirement savers benefit from hearing a person explain how the retirement plan works rather than having to shuffle through documents by themselves, said Barrie Christman, vice president, individual investor services at The Principal. Take it a step further with personalized one-on-one meetings on company time and significantly higher numbers of participants are taking actions that can help get them to the 11-15 percent contribution rangeincluding employer matchthat we believe is needed over the course of a career to have sufficient retirement income.

One-on-one adds up to greater savings

The analysis of participants covered by retirement plans2 through The Principal, who attended a one-on-one meeting in 2011, found that 92 percent agreed to take a positive action and 80 percent completed the action. The top actions were to increase savings rates now and commit to continue to increase them in the future:

Even a small increase in savings can make a big difference in retirement security over time, especially when there is a commitment to keep increasing contributions, said Christman. While plan designautomatic savings features, higher default rates and employer match plays a critical role in empowering participants to save effectively, face-to-face education is a key tool in the retirement readiness toolbox.

The Principal rolled out its unique program of one-on-one meetings at the worksite in 2006. The salaried professionals have conducted more than 340,000 individual meetings since then.

The personalized meetings identify gaps in retirement planning, show how employer-sponsored benefits fit with personal financial needs and help individuals develop a personalized action plan.

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Face-to-Face Education Drives Better Retirement Savings Behavior

updated 9:10 AM EDT, Tue July 10, 2012

Wicketkeeper Mark Boucher is struck in the eye by a flying bail during South Africa's game with Somerset

STORY HIGHLIGHTS

(CNN) -- South Africa wicketkeeper Mark Boucher has announced his retirement from international cricket after a freak accident during a tour match forced him to undergo surgery on a lacerated eye.

Boucher was taken to hospital for an operation after spinner Imran Tahir's dismissal of Somerset's Gemaal Hussain caused a bail to flick up into his eye when he was standing up to the wicket.

The 35-year-old, who has played in 147 Test matches for his country, will return to South Africa for further treatment as soon as he is able to travel.

Boucher spoke of an "uncertain recovery" with the wicketkeeper understood to be battling to save the sight in his left eye.

South African captain Graeme Smith confirmed Boucher's retirement from the international team and read out a statement made by the wicketkeeper to reporters at Somerset's ground in Taunton.

"It is with sadness, and in some pain, that I make this announcement," it read. "Due to the severity of my eye injury, I will not be able to play international cricket again.

"I had prepared for this UK tour as well, if not better than I have prepared for any tour in my career. I had never anticipated announcing my retirement now, but circumstances have dictated differently.

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Boucher announces retirement from international cricket after eye surgery

For the third straight year, the economic recovery has stalled in the spring after showing promise early in the year. Job creation is anemic. The stock market seems poised to do nothing--at least nothing good. Interest rates are still so low that lots of so-called "safe" investments are losing money. Whatever you call it, it's bad news for retirees and would-be retirees concerned about living on a fixed income. As economists restart their advisory machines, so are we. Here are the major realities of the new retirement, updated to reflect stronger doses of conservatism and defensive postures.

[See Top-Rated Mutual Funds by Category Ranked by U.S. News Mutual Fund Score.]

Continue employment. Continuing to work is the most recommended strategy of the new retirement. Lots of experts say 70 is the new 65. It keeps a paycheck coming, and if you're lucky, employer-provided health insurance, retirement-account contributions, and other benefits. And for each year you work, you cut a year off the time your retirement nest egg must last. Finally, continuing to work may also provide you the ability to delay claiming your Social Security benefits. Each year you can put off taking Social Security, your benefits will rise by about 8 percent. Benefits do not increase once you've turned 70.

Go back to school. Even if you leave the workforce, it may not be a permanent decision. Many people get bored in retirement and also miss the discretionary spending that a paycheck can provide. Or, you may simply want to embark on a new career. Whatever the reason, your enjoyment and workplace choices can be enhanced by going back to school. Community colleges have been a great bargain but many of them have been hit by budget cutbacks, so shop carefully when considering classes.

Social Security claiming strategy. As noted, each year you wait--from the earliest eligibility at age 62 until you turn 70--your Social Security benefits rise by about 8 percent. For most people, this means the benefits they would receive at age 62 would be only 75 percent of what they're entitled to if they wait until age 66, which is considered "full retirement age" for most baby boomers. And if you wait until age 70, that amount goes up to 132 percent of your age 66 benefits. These are real annual gains, because overall benefits are also adjusted each year to account for inflation. Of course, your health and family situation may argue for an early claiming age. Another key aspect of claiming strategy involves couples. It may be possible for one spouse to begin drawing half of the other spouse's Social Security benefits while still delaying his or her own claiming date (and thus enjoying those 8 percent annual benefit increases). Check out the Social Security Claiming Guide at Boston College's Center for Retirement Research.

[See Balancing the Retirement Equation.]

Taxes. The economic and political weight of enormous budget deficits makes it all but certain that your taxes will rise. Now that the U.S. Supreme Court has affirmed the constitutionality of the Affordable Care Act, aka Obamacare, it's looking more likely that two new related tax hikes for affluent taxpayers will occur next year: a 3.8 percent investment tax and an 0.9 percentage-point increase in the Medicare payroll tax. Both levies will apply to joint filers with adjusted gross incomes exceeding $250,000 a year ($200,000 for single filers). The 2-percentage point cut in Social Security payroll taxes will expire at the end of this year. And so will the biggest tax item, the Bush-era tax cuts. It is unlikely that all these tax changes will happen in their current form. But as you think about your future after-tax income needs, you should create some alternative budgets that feature 5-percent and even 10-percent cuts in your spending money. What would those trims do to you?

Health insurance. Medicare beneficiaries have been clear winners--to date--from health reform. While there are concerns about long-term cuts in some Medicare spending, the nearer-term impacts have been very positive for seniors. Prescription drug prices have been sharply cut for Medicare users. And a raft of free preventive health services was mandated by the law as well. Take advantage of these features.

Reverse mortgages. Reverse mortgages are worth a look, but it should be a very careful and deliberate one. These loans permit homeowners who are at least 62 to get out from under mortgage payments and remain in their homes. They do so by effectively using the owner's remaining equity in the home to make loan payments to a reverse mortgage lender. Reverse mortgages have been controversial and have carried high fees. Many experts see their growth as a sure thing, driven by rising numbers of seniors and studies showing big shortfalls in retirement nest eggs. And there is a federally insured program that has provided stability and credibility to the product. But these loans have not taken off and several lenders have left the business. The new federal Consumer Financial Protection Bureau recently issued a cautionary report on reverse mortgages.

[See Beware Playing 401(k) Catch-Up Close to Retirement.]

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8 Retirement Realities in a Stumbling Economy

Retirement might seem far in the distance for young workers, but a staggering 44% of 24-to-34 year olds don't know how to reach their retirement goals, whileonlya third have calculated how much money they will need to continue their current lifestyles. It's never too early to begin planning for your golden years. Here are five expert tips for young adults to get ahead:

1. Develop a clear plan.

Barrie Christman at Principal Financial Group encourages young workers to set a number goal for retirement funds to serve as a powerful motivation. To obtain adequate savings by age 65, she suggests saving enough to have a retirement account balance that is a third of your current employment income by age 30, but twice your then level of employment income byage 40.

Christman adds that most people need to save between 11% and 15% of their salaries over the course of their careers.

Online retirement planning calculators or help from a financial professional can be useful tools when evaluating your retirement goals.

2. Start saving today.

As a young investor, your investments could potentially experience massive growth thanks to compounding interest. Someone who starts saving later in life would have to contribute a lot more money to catch up.

Young workers should enroll in your company's 401(k) program. If your employer offers a match program, contribute enough to get the full match and take advantage of what is essentially "free money."

Certified Financial Planner Jon Ulin prods younger workers to save up to $5,000 a year in a Traditional IRA or Roth IRA as a first step if they do not have an employer-based savings plan or are self-employed.

According to Ulin, the principal contributions to a Roth IRA can be accessed penalty free at any time, potentially making it a more viable option for workers who need less of a tax incentive today.

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Five Steps Young People Should Take to Prepare for Retirement

Video Link: https://www.youtube.com/watch?v=P8wbe9KH9wA

09-07-2012 14:39 65 may no longer be the magic number when it comes to retirement. CNN's Suzanne Malveaux has more. For more CNN videos, check out our YouTube channel at Or visit our site at

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65 no longer the American retirement age - Video

Many of us think of retirement as the point at which weve made it financially. Retirement arrives, and its time to put our finances on autopilot and cruise through the rest of life, enjoying our hard-earned money.

Its not that simple, though. If you want to make sure your money lasts and that your assets are properly protectedand your spouse is protected tooyou need to continue to manage your money throughout retirement. Here are three financial moves that you shouldnt neglect during retirement:

1. Rebalance your portfolio. Even in retirement, you might still need to rebalance your portfolio. The economic situation is always changing, and the markets are always responding. While you dont want to completely overhaul your portfolio in the midst of retirement, it doesnt hurt to tweak it occasionally, and periodically assess what your portfolio is doing for you. Make sure you have the income streams you need, and reallocate assets as needed.

2. Consider life insurance. It seems strange to buy life insurance during retirement, especially since your kids are likely grown up. However, life insurance isnt just about making sure the kids are taken care of if you pass on while theyre young. Its about taking care of any dependents, and that includes your spouse. If your spouse would suffer from the lack of pension income if you passed on, or if you have other obligations, such as a mortgage that it would be nice to pay off with the life insurance, consider a policy that protects your spouse.

Additionally, its worth noting that your life insurance policy can be used by your heirs to pay funeral expenses and estate taxes. Before you shrug off the value of life insurance during retirement, consider those who will be left behind when you pass on.

3. Estate planning. During retirement, you need to keep up with your estate plan. Consider the items that will protect you and your assets. This includes setting up power of attorney and health care proxy situations so that you are properly taken care off and your wishes are followed if you become incapacitated.

You can also use trusts and other financial arrangements to ensure that your money passes smoothly. The structure of your estate and assets matters when your assets are transferred to heirs. Review these items regularly (at least once a year) to ensure that everything is in order.

Part of estate planning and smart finances during retirement also includes regularly checking your beneficiaries. You want to make sure beneficiary information is up to date because the information on your retirement accounts, pensions, bank accounts, and insurance policies supersedes what you have in your will. Regularly review your beneficiary information to make sure the money is going where you want it to go.

It doesnt take a lot of time each year to review your financial situation and make updates. Being on top of your situation will help you improve your finances and ensure that your retirement years truly are your golden years.

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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3 Financial Moves to Make During Retirement

By Glenn Ruffenach

Yes, working beyond your planned retirement date might be the best way to secure your financial future. But you might not have to work for as long as you think or fear.

A new study from the Center for Retirement Research at Boston College looks at how much longer households have to work beyond age 65 to be prepared for retirement. The finding: Over 85% of households would be prepared to retire by age 70. Put another way, many Americans who now fear they will have to work forever could enter retirement after working between one and six years beyond age 65, depending on the size of their nest eggs.

The results paint a different picture than recent opinion surveys, which find that people anticipate that they will have to work much longer, the report states.

The study is titled: National Retirement Risk Index: How Much Longer Do We Need to Work? The National Retirement Risk Index measures the share of U.S. households at risk of being unable to maintain their pre-retirement standard of living in retirement.

Currently, in the wake of the financial crisis of 2008-2009, just over half 51% of todays working households are at risk, according to the center. But an important assumption in calculating that number is that people retire at age 65. If people were to work longer, the percentage at risk would fall. Thus the question, as outlined in the report: At what age would the vast majority of households be ready to retire?

By estimating target replacement rates (retirement income as a share of wage-adjusted lifetime income) and calculating the age of readiness (the age at which a households projected replacement rate equals its target replacement rate), the center estimates that:

While the numbers suggest that todays workers will need to work longer than their parents, the study concludes, workers today are also healthier and better educated, generally have less physically demanding jobs, and can expect to live longer. In short, working longer is feasible for most households, and it does not mean working forever.

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Is 70 the New Retirement Age?

The last five years have been tough for those in retirement. Portfolio valuations have been hammered, annuity rates have plunged and uncertainty has ruled the roost. There's no sign of things improving any time soon, either, as the eurozone and the UK 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, especially if you keep the shares within a tax-efficient ISA or SIPP.

It's no coincidence that the world's most successful investor, Warren Buffett, prefers such companies, and recently invested in a large FTSE 100 (Euronext: VFTSE.NX - news) (UKX) company that fits the bill perfectly (you can find full details in this free report).

In this series, I'm tracking down the UK large caps that have the potential to beat the FTSE over the long term and support a lower-risk income-generating retirement fund. I'm going to kick off the series with a look at SSE (Frankfurt: A0RFBG - news) , the UK's third-largest electricity utility and a share that's a big favourite of income investors, thanks to its superb dividend record.

Defensive performer

Utility shares are traditionally 'defensive' shares -- shares that are popular during times of economic volatility, such as we have seen in the last few years. SSE has benefited from this defensive bias and from the attraction its dividend policy holds for long-term investors looking for a reliable income. As a result, it has massively outperformed the FTSE 100 over the last 10 years:

If you are building up a retirement portfolio, total return is a useful metric for measuring the performance of your stock, as it captures the effects of share price changes and reinvested dividends. These two ingredients combined are what make it possible for equity portfolios to regularly outperform cash and bonds over the long term.

The trailing 10-year average total return highlights just how valuable SSE's stability and strong dividend performance is for retirement investors. Despite SSE getting left behind in the rebound rally of 2009, it didn't crash in 2011 and its trailing total return over the last 10 years is double that of the FTSE 100.

What's the score?

To help me pinpoint suitable investments, I like to score companies on key financial metrics that highlight the characteristics I look for in a retirement share. Let's see how SSE shapes up:

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Is SSE The Ultimate Retirement Share?

(MoneyWatch) COMMENTARY The topic of retirement already causes many people to lose sleep at night, as they realize they don't have enough money saved up to retire any time soon. Making matters worse is the understanding that we may need to help our parents with long-term care in their final years, placing another emotional and financial burden on our finances and families.

Then another troubling reality hits: We may need the same special care in a few decades.

Several heart-wrenching stories have appeared in the news of late describing the travails of baby-boomers struggling to cope with aging parents. (If you haven't experienced these challenges first-hand, I encourage you to read "A Life Worth Ending" in New York Magazine, "The Long Goodbye" in Time Magazine, and "Preparing for a Future That Includes Aging Parents" on National Public Radio's website.)

These reports give you an up close and personal look at the challenges we'll all face, either with our parents or for ourselves down the road. The stories sounded all too familiar to my wife and I, as our families scrambled in recent years to help my father and her mother receive the care they needed in their final years. Our experience provided a wake-up call to plan ahead in order to address this challenge for ourselves in the years to come.

Long term care for aging parents could reach $300,000 per person: How to cope Should you buy long term care insurance? Don't let Alzheimer's and dementia spoil your retirement

A long-term care event -- either with your parents or yourself -- can easily destroy anyone's retirement plans. The cost of paying for long-term care at a nursing home for a few years -- which insurance firm Genworth recently calculated at more than $80,000 per year -- could pay to send a grandkid to Harvard or fund a nice retirement.

Since we're on a roll, let's get all the bad news on the table. Recently, major insurers such as MetLife (MET), Prudential (PRU), and Unum (UNM) have stopped selling new policies for long-term care insurance, citing low interest rates, growing life expectancies, and uncertainty surrounding the prevalence and duration of Alzheimer's and dementia. The Obama administration also announced last year that it was shelving implementation of the Community Living Assistance Services and Supports program because of problems in designing a financially viable program to pay for long-term care. If feds couldn't solve this problem, what are our chances?

OK, I've got your attention. Now what? Well, you can't just sit around and brood about it. One of my favorite quotes comes from singer Joan Baez: "Action is the antidote to despair." So what can we do to take action, either for ourselves or our parents?

There are only two things we can do: (1) Take steps to reduce the odds of needing long-term care, and (2) prepare a plan for paying for the costs in case we need such care. Much easier said than done, of course, but that's the plan.

If you're now facing these issues with your parents, the die has already largely been cast. It's most likely too late to buy long-term care insurance, and your parents can't go back and retroactively save more money to pay for the care they need. But they can still take steps to improve their health, regardless of their age, and you can make the best use of existing financial and family resources.

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Facing the national retirement nightmare