The best way to save for retirement is to follow the usual advice: save more, long longer, delay Social Security and so on. But experts also say there are many little-known retirement tips worth following, too. Here's a look at 10 such tips that advisers say you shouldn't overlook.

1. Forget 'The Number'

You are more than welcome to go about your life worrying whether you've saved enough -- say $1 million or $2 million -- to retire. But that's not the number you should focus on, said Wade Pfau, an economics professor at the National Graduate Institute for Public Policies in Japan and a frequent blogger on retirement issues. "There is no such thing as a specific wealth number that will suddenly allow you to retire," Pfau said. "The income stream your wealth can support matters much more than how much wealth you have. The income stream supportable by a given amount of wealth varies with interest rates and other factors."

2. Don't rely too much on the 4% rule

Speaking of income, David Blanchett, a research consultant at Morningstar Investment Management, said taking out 4% from your retirement accounts might be a good starting place for an initial withdrawal rate. "But revisit this withdrawal amount regularly, ideally on an annual basis, to make sure whatever the target income goal is still achievable," he said.

3. Think tax-efficient income

Think also about the tax efficiency of your retirement income, Blanchett said. Dividends, for instance, can be far more tax-efficient than bonds from an after-tax income perspective if they are qualified -- that is, taxed at a maximum rate 15% vs. 35% for ordinary income. That's yet another reason to hold them in an after-tax account.

But don't think only about generating tax-efficient income in retirement. Consider your withdrawal strategy from a "happiness" perspective. "Ignoring required minimum distributions rules, common tax wisdom suggests drawing from taxable accounts first, then a Traditional IRA, and finally from a Roth IRA," Blanchett said. "I think this makes sense and can definitely increase the available income, but it's also important to have some 'tax diversification' with respect to withdrawal moneys."

4. Social Security is a household decision

For married couples, research the various ways spouses can take Social Security, said Pfau. "The week spent studying this matter could result in hundreds of thousands of dollars worth of extra lifetime Social Security benefits," he said, noting that it's not usually a good idea for both spouses to begin Social Security as early as possible.

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A Checklist for Retirement Savers

Investment losses were steep across the board during the Great Recession, but the downturn was especially hard on retirement accounts.

Pension funds, which primarily pay for the retirements of public-sector and manufacturing workers, lost hundreds of billions. State revenues fell from $1.6 trillion in 2008 to $1.1 trillion in 2009. The California Public Employees' Retirement System, one of the nation's largest, fell more than 25 percent, from $260 billion in October 2007 to $160 billion in March 2009.

[See 10 Places to Retire on Social Security Alone.]

Individual 401(k) accounts were also hit hard. According to Hewitt Associates, the average investor lost $10,000 in retirement savings in 2008. Fidelity reported that investors lost an average of $19,000 that same year. These losses caused many to postpone their retirement in order to save more.

At the same time, the future of Social Security is in serious doubt. According to recent reports, the Social Security disability program's trust fund, a program that supports people with disabilities and their families, will run out of money in 2016. In April, the federal government warned that all of Social Security would be insolvent by 2024 unless drastic changes are made to how the program is administered. Few believe that a deadlocked Congress will make any progress on improvements to the program.

"There's a great amount of skepticism when it comes to Social Security and government benefits," says Dave Vick, president of Vick & Associates, a company that teaches classes on financial planning. "There's a whole group of people who love those benefits who blindly believe it's not going to change. There's a whole group of people who refuse to believe the reports that Social Security is going to become insolvent," he says.

According to Vick and other retirement experts, steep losses in pension funds and 401(k)s are causing Americans to rethink the way they are planning for retirement. New investment instruments are being developed that provide more income security and make payouts in different ways. Without these new instruments, experts warn that many Americans will be ill-prepared for retirement.

[See 10 Ways to Boost Your Social Security Checks.]

Loss of faith in retirement traditions. Jerry Kalish, president of National Benefit Services, a firm that serves as a third-party administrator of pension plans, says the recent downturn has left the majority of Americans--not just older Americans close to retirement--unable to meet their retirement savings needs.

"As a country, we are woefully unprepared for retirement. Defined-benefit pension plans are, for all purposes, gone. A lot of them are frozen, meaning there are no benefits accrued and most are underfunded. It really leaves 401(k) plans right now," which suffered losses during the recession, Kalish says.

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Investors Seek Nontraditional Retirement-Savings Options

BOSTON (MarketWatch)The best way to save for retirement is to follow the usual advice: save more, work longer, delay Social Security and so on. But experts also say there are many little-known retirement tips worth following, too. Heres a look at 10 such tips that advisers say you shouldnt overlook.

1. Forget The Number

You are more than welcome to go about your life worrying whether youve saved enoughsay $1 million or $2 millionto retire. But thats not the number you should focus on, said Wade Pfau, an economics professor at the National Graduate Institute for Public Policies in Japan and a frequent blogger on retirement issues. There is no such thing as a specific wealth number that will suddenly allow you to retire, Pfau said. The income stream your wealth can support matters much more than how much wealth you have. The income stream supportable by a given amount of wealth varies with interest rates and other factors.

2. Dont rely too much on the 4% rule

Speaking of income, David Blanchett, a research consultant at Morningstar Investment Management, said taking out 4% from your retirement accounts might be a good starting place for an initial withdrawal rate. But revisit this withdrawal amount regularly, ideally on an annual basis, to make sure whatever the target income goal is still achievable, he said.

3. Think tax-efficient income

Think also about the tax efficiency of your retirement income, Blanchett said. Dividends, for instance, can be far more tax-efficient than bonds from an after-tax income perspective if they are qualifiedthat is, taxed at a maximum rate 15% vs. 35% for ordinary income. Thats yet another reason to hold them in an after-tax account.

But dont think only about generating tax-efficient income in retirement. Consider your withdrawal strategy from a happiness perspective. Ignoring required minimum distributions rules, common tax wisdom suggests drawing from taxable accounts first, then a Traditional IRA, and finally from a Roth IRA, Blanchett said. I think this makes sense and can definitely increase the available income, but its also important to have some tax diversification with respect to withdrawal moneys.

4. Social Security is a household decision

For married couples, research the various ways spouses can take Social Security, said Pfau. The week spent studying this matter could result in hundreds of thousands of dollars worth of extra lifetime Social Security benefits, he said, noting that its not usually a good idea for both spouses to begin Social Security as early as possible.

More here:
10 Overlooked Retirement Tips

When Social Security was created in 1937, the average American lived to age 60. Since then, medical advances have added decades to life expectancy. Most 55-year-olds today will see their 82nd birthday.

Problem is, we haven't adjusted the way we work, the way we save, or the structure of our public programs to support these extra years, says psychologist Laura Carstensen, head of Stanford University's Center on Longevity and one of the nation's top researchers on aging.

In her newly updated book, "A Long Bright Future," Carstensen, 58, proposes actions for individuals, employers, and public institutions that, she says, will provide us financial security for the long road ahead.

Her other pet project: the just-launched Financial Fraud Research Center, a partnership with securities regulator FINRA that aggregates data and provides funding to investigate why older people are so frequently targeted by scammers. Her conversation with senior writer Donna Rosato has been edited.

You've spent a lot of time looking into the perceptions of aging vs. reality. What's the biggest myth?

At the top of the list is the Misery Myth, the presumption that older people are lonely, depressed, and discouraged.

In one study we had participants carry pagers and randomly asked them to report on their emotions. Older people reported as many positive emotions as younger people, but far fewer negative ones.

The data are striking on mental health disorders too. Anxiety, depression, and substance abuse are much lower in older people.

Great to know we'll be happier than we expect. But surely money plays into that. How can we make certain we'll be secure in our longer lives?

I cringe when I see headlines about most people not saving enough. Humans are very sensitive to social norms, and this makes people feel comfortable about doing nothing. But there are ways to get around our tendencies.

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Retirement: Financial security for the long road ahead

NEW YORK, June 4, 2012 /PRNewswire/ --J.P. Morgan Retirement Plan Services (RPS), the retirement plan record keeping business of J.P. Morgan Asset Management, today announced that it has hired Bill McDermott in a newly created role as Head of Sales and Client Solutions. Mr. McDermott will oversee the teams responsible for distribution, relationship management, and the delivery of client solutions, including investment and participant communication and education services. He will be based in New York and will report to David Musto, Chief Executive Officer for Retirement Plan Services. He also will serve on the Executive Committee of J.P. Morgan's Retirement business, led by Michael Falcon.

"Bill has a proven track record in leading teams to drive client satisfaction and business growth. He will be instrumental in delivering the full scope of our capabilities to clients and in continuing our business momentum," said David Musto. "In this new role, Bill will ensure that all client-facing resources are coordinated to deliver the best insights, tools and solutions, with emphasis on building our critical partnership with the retirement advisor community."

Mr. McDermott previously led the defined contribution business at Goldman Sachs Asset Management. Before that, he developed new distribution channels for annuity and investment products at AXA Equitable and led business development, relationship management, marketing, communications and education in the retirement services and benefits administration businesses at Fidelity and Hewitt.

About J.P. Morgan Asset Management RetirementJ.P. Morgan Asset Management is a leading comprehensive retirement solutions provider dedicated to improving individual retirement outcomes. J.P. Morgan Retirement Plan Services provides bundled defined contribution services to more than 650 clients and 1.8 million plan-level participants, representing more than $125 billion in retirement plan assets as of March 31, 2012. J.P. Morgan Defined Contribution Investment Solutions manages more than $61 billion in defined contribution assets as of March 31, 2012.

About J.P. Morgan Asset ManagementJ.P. Morgan Asset Management, with assets under supervision of approximately $1.9 trillion and assets under management of $1.4 trillion (as of 03/31/12), is a global leader in investment management. J.P. Morgan Asset Management's clients include institutions, retail investors and high-net worth individuals in every major market throughout the world. J.P. Morgan Asset Management offers global investment management in equities, fixed income, real estate, hedge funds, private equity and liquidity. JPMorgan Chase & Co. (JPM), the parent company of J.P. Morgan Asset Management, is a leading global asset management firm with assets of approximately $2.3 trillion and operations in more than 60 countries. Information about JPMorgan Chase & Co. is available at http://www.jpmorganchase.com.

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J.P. Morgan Retirement Plan Services Hires Bill McDermott As Head of Sales and Client Solutions

Alameda, CA (PRWEB) June 05, 2012

The San Francisco Bay Areas retirement plan specialists, Retirement Desk, a firm devoted to the small and mid-sized plan market, was recently engaged by PensionOnline.com, a leading provider of proposal software for the pension industry. Pensiononline.coms FlexSoft retirement plan design software is already popular with Pension administrators for its ease of use and reports that illustrate how business owners can save more in taxes with retirement plans. Now, as many new advisers are entering the retirement plan market, the need to equip these advisers in the intricacies of the qualified retirement plan world is greater than ever.

I have used the FlexSoft product for years to close business faster and easier when I was an adviser. I am honored that Pensiononline.com has given us the opportunity to share this success with other advisers, Jason Woon of Retirement Desk said.

This announcement comes as both Pensiononline.com and Retirement Desk are expanding their products and services to the largely underserved small and mid-sized retirement plan world and its advisers. The goal is to help clients illustrate the features and communicate the benefits of qualified retirement plans to both employers and employees.

Retirement Desk already knows this market and how to help advisers capitalize on this low-hanging fruit in their practice and with their centers of influences, Marco Brown, founder of Pensiononline.com, said. Now it is about getting the word out to this new wave of advisers.

Founded in 1985 and headquartered in San Francisco, Pensiononline.com is a leading technology provider for the pension industry. It introduced the first suite of Web-based proposal and management systems for the defined contribution industry. Pensiononline.com now provides comprehensive software solutions that enable businesses to facilitate employees' retirement planning needs.

For more information about the partnership or any of Retirement Desks services, call 510-457-1925 or view the 401K plans expert on the Web at http://www.retirementdesk.com.

About Retirement Desk

Retirement Desk was founded by retirement industry veterans in 2010. With an insider view of retirement plan providers and the understanding of the needs of registered investment advisers, Retirement Desk set out to create a set of turnkey solutions that truly meets the needs of both advisers and plan sponsors. The results are independently crafted packages that would serve small and mid-sized companies with no hidden fees or conflicts of interest. Retirement Desk is capable for providing independent consulting on 401k plans and retirement plans, as well as perform fiduciary reviews and benchmarks.

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Retirement Desk of San Francisco Engaged by Pensiononline.com to Expand Retirement Plan Design Software, Especially to ...

By Carla Fried - 2012-06-04T20:19:13Z

When it comes to saving for his own retirement, certified public accountant Barry Picker takes advantage of a tax strategy ignored by most Americans. Each year he stashes some of his retirement savings in a Roth 401(k), rather than putting all his savings into a traditional 401(k).

While that means he misses out on the immediate tax break that comes from contributing to a traditional 401(k), Picker has something else in mind -- a less taxing retirement. By paying taxes now, he wont have to worry about paying taxes when he withdraws money from his Roth 401(k) later. Money withdrawn from a traditional 401(k), of course, will be taxed as ordinary income.

The big question investors have to grapple with, of course, is why they would rather pay taxes now instead of later -- especially when there is no way to know where tax rates will be in the future. Its a compromise, says Picker, who is also a certified financial planner. I am giving up some control over managing my tax bracket today for being able to manage it in retirement. Thats going to be valuable to me later.

While Picker is thinking about keeping his taxes down in retirement, a Roth 401(k) also provides more flexibility when it comes to managing income and some less obvious payoffs as well.A traditional 401(k) requires you to begin taking distributions in the year your turn age 70 (or if later, the year you retire) -- and then you pay taxes on that income. With the Roth 401(k), there is no required minimum distribution (if you roll the Roth 401(k) into a Roth IRA). That means you can choose to leave your funds invested and reduce your gross income.

Maria Bruno, a senior investment analyst at Vanguards Investment Counseling & Research group, says regardless of what happens to tax rates, if you have to take a distribution from a traditional 401(k) that could bump you into a higher marginal tax bracket as well as reduce the net value of your Social Security benefit and increase your Medicare costs.

Consider this. For a married couple filing a joint tax return in 2012, up to half their Social Security benefit will be taxed if the sum of their adjusted gross income plus half of their Social Security payout and any nontaxable interest income is between $32,000 and $44,000. If their adjusted gross income rises above $44,000, up to 85 percent of the Social Security benefit becomes taxable. The distribution requirements of a traditional 401(k) could push their income over the edge. If it's in a Roth 401(k) it doesnt need to.

While the Social Security benefit isnt that practical for many people, given thelow-income thresholds, leaving your money in a Roth 401(k) can have a more significant impact on your Medicare premiums during retirement.

This year, the standard monthly premium for Medicare Part B, which covers outpatient doctor and medical services and equipment, is $99.90. If a couples joint modified adjusted gross income is above $170,000, the per-person monthly premium can rise by $40, to $220. The highest premiums go to couples with a joint income above $428,000 ($214,000 for individuals). For those with joint incomes above $170,000 who are enrolled in Medicare Part D, which covers expenses for prescription medications, there is an additional per-person monthly premium ranging from $11.60 to $66.40.

Despite the benefits, few people are switching from traditional 401(k) plans to Roth 401(k) plans. One reason is that Roth 401(k) plans are still a relatively new option (since 2006) in employer retirement plans,and only about 40 percent of 401(k) plans offer a Roth option. Among those that do offer a Roth 401(k), fewer than 10 percent of employees are choosing them, according to a study by Vanguard. Many people also believe the Roth 401(k) is for younger workers who have yet to hit their peak earnings (and marginal tax brackets). For them, the logic goes, losing out on the upfront tax break isnt such a big deal.

More:
The Retirement Savings Move Tax Pros Love

(MoneyWatch) It's been widely accepted as retirement planning gospel that your retirement income needs to increase to account for inflation. Indeed, many experts say that the natural rise in the cost of living means that the monthly income you collect early on may not be enough to cover your living expenses in your later years.

But is this that necessarily so? Is it prudent or irresponsible to spend more in your early years of retirement -- your sixties and seventies -- assuming that you'll actually spend less in your eighties and nineties?

Given the meager level of retirement savings that most baby boomers have accumulated, knowing whether your income should increase for inflation could be an important issue. For one thing, if you don't need to plan for increases due to inflation, you can choose retirement income generators that help your retirement savings generate more initial income. (You can see how this works by looking at my April retirement income scorecard for immediate annuities.) For a married couple both age 65, $100,000 in retirement savings would buy an immediate fixed annuity that would generate an annual income of $5,840, or an inflation-adjusted annuity that would generate just $3,875 annually. The initial income for the fixed annuity is 50 percent higher than for the inflation-adjusted annuity.

IRA and 401(k) retirement drawdown: Don't die broke Retirement income scorecard: Immediate annuities

You'd see similar results if you used managed payouts to generate retirement income -- remember that a strict application of the four percent rule assumes you'll increase your retirement income each year for inflation. You might be able to justify withdrawing money from your savings at a much higher rate if you assumed you wouldn't increase your retirement income for inflation.

Some researchers have used data from the annual Consumer Expenditure Survey to imply that people spend less as they age. For example, financial expert Wade Pfau's excellent blog post, "How do spending needs evolve during retirement," summarized data from the 2010 Consumer Expenditure Survey to show that people age 75 and older spend 40 percent less than people age 55 to 64, and 26 percent less than people age 65 to 74.

The implication is that people spend less money on recreation, transportation, gifts, and other discretionary purchases as they reach their eighties and nineties. So do you need less money than you think to retire?

Before you hand in your retirement notice, consider a few limitations with relying on this type of data. First, it's entirely possible that retirees who are currently age 75 or older spend less money than younger retirees simply because they have less money to spend. This could be the case for a few reasons. For example, Social Security and pension benefits are based on a person's wage history, and recent retirees had higher real wages than older retirees. Thus, the retirement income of recent retirees could be higher than older retirees.

It's also possible that some older retirees have exhausted their savings and are now relying just on Social Security and pension benefits, if they have any, while younger retirees are still drawing on their retirement savings. The older retirees may not be making voluntary reductions in spending -- and they may not be too happy about it.

This data may also not be relevant to future retirees when you consider medical expenditures. Given the erosion of Medicare and retiree medical plans, and given that medical expenses are rising much faster than inflation, future retirees compared to current retirees may have to devote a much bigger chunk of their retirement income to medical costs.

Read more here:
Three ways to boost your retirement income

TALLAHASSEE Changes to the state employee retirement program aimed at eliminating abuses and excessive payouts are in place although a dwindling number of state government workers are still banking two retirement checks.

That second retirement check is quickly becoming a thing of the past and new hires must work longer to become vested in a retirement plan that is less lucrative than its predecessor.

Doing away with the double dipping was pretty much focused on elected officials and judges who were truly taking advantage of the system; it was shameful, state Sen. Mike Fasano, R-New Port Richey, said. Its frustrating to the average citizen and average taxpayer.

But almost 2,000 employees, including some prominent names, are still receiving two retirement checks and its all legal.

Former Secretary of State Kurt Browning retired in the spring of 2010 when he claimed a $426,897 payout from the states Deferred Retirement Option Program (DROP) in addition to a $7,273 monthly retirement and returned to the $140,000-a-year job in January 2011 before resigning a second time earlier this year.

The state paid nearly $5.8 billion to 319,689 retirees (an average of $18,066) in the fiscal year that ended June 30, 2011 and another 9,595 employees cashed out of the DROP program. Nearly half of the 643,000 active members in the Florida retirement system are teachers and other school district employees.

Under the new rules, employees are allowed to return to work if they sit out at least six months after cashing out of DROP. Previously they were able to return after 30 days.

Willie Meggs, a state attorney in Tallahassee, received $519,995 from DROP in late 2007 and began collecting a monthly retirement check of $8,468.32 but didnt retire. He took a month, as previously required, and returned to his $153,000-a-year job.

Obviously, they had to think people would come back after 30 days or they wouldnt have put it in there, Meggs said. They must have anticipated you would come back.

The recent legislative changes make it more difficult, if not impossible, for an elected official to circumvent the intent of the DROP since they would have to sit out for six months and the amount of money in the retirement account would be frozen and not earn interest during the period that individual would continue in their career.

See more here:
A second retirement check less of option

By Boris Cerni and Zachary Tracer - 2012-06-03T22:00:00Z

American International Group Inc. (AIG) Chief Executive Officer Robert Benmosche said Europes debt crisis shows governments worldwide must accept that people will have to work more years as life expectancies increase.

Retirement ages will have to move to 70, 80 years old, Benmosche, who turned 68 last week, said during a weekend interview at his seaside villa in Dubrovnik, Croatia. That would make pensions, medical services more affordable. They will keep people working longer and will take that burden off of the youth.

The crisis, now in its third year, threatens to destroy Europes 17-nation currency union as Greece contemplates exiting the euro and Spain sees its bond yields rise and banking industry falter. German Chancellor Angela Merkel hardened her opposition to joint debt sharing in the euro region as U.S. President Barack Obama singled out Europes leaders for not doing enough to arrest the crisis.

Greece abandoning the euro could be a disaster for the country and Europe must work to keep that from happening, said Benmosche, whose company was the worlds biggest insurer before it took a U.S. bailout.

People in Greece have to see there is no easy way out of this and the government must get them to work longer, he said in the June 2 interview on the Adriatic coast. If not, and if they go to their own currency, I think they will see huge inflation and it will be devastating for people on fixed incomes.

Greece, where the average life expectancy is 81.3 years, has an effective retirement age of 59.6, among the lowest in Europe, according to data compiled by Bloomberg. French President Francois Hollande, the Socialist who was sworn in last month, has pledged to cut the retirement age to 60 from 62 while increasing corporate and bank taxes and introducing a 75 percent levy on earnings of more than 1 million euros ($1.2 million).

Peter Hancock, CEO of AIGs Chartis property-casualty unit, said last week the insurer has assigned staff from Argentina to advise their counterparts in Athens as the company prepares for a possible Greek exit from the euro, with the common currency at its lowest against the U.S. dollar since June 2010. Argentina defaulted on a record $95 billion of debt in 2001 and later abandoned a decade-long 1-to-1 peso peg to the greenback.

We have gone through the crisis in Argentina and other countries over time, so we have experience there, Benmosche said.

Benmosche has sold non-U.S. life insurers, a consumer lender and other businesses to pay back its taxpayer rescue, which swelled to $182.3 billion as the U.S. extended more credit and lowered the interest charged. The Treasury Department has cut its stake to 61 percent from 92 percent through three share sales totaling about $17.6 billion. In the most recent two, AIG bought back a total of $5 billion in stock.

See the article here:
AIG Chief Sees Retirement Age as High as 80 After Crisis