Usually, when people talk about someone "going through a stage" they are talking about a 2-year-old or a teen. But there's another age at which people go through a key transitional period, also marked by angst and rebellion: Call it pre-retirement.

It sets in by the time workers hit their late 50s, even though they are told they should work for another decade or so to maximize their retirement security. But it hits for real about five years before an expected retirement date. It's the period that Prudential Financial Inc calls "the red zone" and another insurance company, Allianz Life Insurance Company of North America, calls "the transitional phase."

Both of those companies talk about that pre-retirement period in the context of selling annuities -- insurance products that offer tax benefits and lifetime income in exchange for large sums of money. But buying insurance or some other financial product is the easy part of retirement planning; the hard work should happen first.

[Related: Planning for Retirement: Plan to Live to 100]

Here are some guidelines for getting through that phase with a minimum of stress and strain.

Get specific about life planning. This can be the most challenging part of the exercise; the rest is just numbers. What are the activities you really care about? Where do you want to travel and need to travel? What kind of lifestyle do you think you will have? There are ways to get help with this. The University of North Carolina at Asheville runs "Creative Retirement Exploration" weekends (http://ncccr.unca.edu/creative-retirement-exploration-weekend). A variety of books and websites claim to be able to help with lifestyle planning. Mutual fund company T. Rowe Price has a new interactive online exercise called "Ready 2 Retire" that walks older workers through some of these questions.

Become a Social Security savant. The program is complicated, but will make a significant contribution to almost everyone who retires in the United States. There are a series of strategies you can use to maximize your benefits, especially if you are married. Couples can tag-team their benefits, claim them and suspend them, defer them and more.

It makes sense to get a good numbers person, an actuary or an accountant, who understands all of this, to help you figure out which strategy is best for you. At least one company, Social Security Solutions (http://www.socialsecuritysolutions) claims to have all of that down to a science. For a fee, it will come up with a comprehensive benefits plan for you.

Do a health-care plan. Private health insurance will change over the next few years, regardless of whether the Obama healthcare reform law is permitted to stand. And it's impossible to predict the future in the way that some companies ask you to. For example, T. Rowe Price asks: "Where would you prefer to receive long-term care? At home, adult day-care center, assisted living facility, nursing home?"

But you can figure out if you're covered for gaps before Medicare kicks in at 65 and afterwards. How is your health? Do you need to be near certain medical facilities? What drugs do you take regularly? Will they be covered under Medicare? What are your personal priorities in a gap-filling policy and how cheaply and reliably can you fulfill them?

Read the original:
Stern Advice: Countdown to Retirement

LOS ANGELES--(BUSINESS WIRE)--

Transamerica Retirement Services announced today the appointment of Darren Zino as division vice president of the companys mid-Atlantic region. In this new role, Zino will oversee all sales activities for the region and will be based in North Carolina. He will report to Jason Crane, senior vice president and national sales director.

Transamericas prominence in the small and mid-sized retirement plan arena continues to gain momentum, and we are always looking for ways to meet the business needs of financial advisors and third party administrators, said Stig Nybo, president of Transamerica Retirement Services. Darren is an excellent addition to our sales management team, and I am confident he will be instrumental in helping us exceed our future strategic and growth objectives.

Transamerica continues to experience record-breaking results. For the three-year period ending 2011, new business written sales increased more than 50 percent, and the number of plans sold during the same period increased more than 25 percent. Additionally, at the end of 2011, assets under management and written sales reached all-time highs for the company.

With more than a decade in the retirement plan industry, Zino most recently served as divisional vice president for The Hartfords retirement plans group. He received his Bachelor of Arts in economics from the University of Florida.

Darren is a high caliber retirement services professional who has proven over a distinguished career his unique ability to build strong relationships, said Crane. Ive had the privilege of working alongside him in the past, and his sales record in the region speaks volumes about his acumen for this management role. He is an established leader in our industry, and I am honored to have him join our team.

About Transamerica Retirement Services Corporation

Transamerica Retirement Services Corporation (Transamerica or Transamerica Retirement Services), which is headquartered in Los Angeles, CA, designs customized retirement plan solutions to meet the unique needs of small- to mid-sized businesses. Transamerica and its affiliates have more than 17,0001 retirement plans totaling more than $20 billion1 in assets. For more information about Transamerica, please refer to http://www.TA-Retirement.com.

1As of December 31, 2011.

TRSC 6293-0412

Go here to read the rest:
Transamerica Retirement Services Names New Division Vice President

Impressive!

Last week I asked Morningstar.com readers to sum up their philosophies on investing during retirement in 15 words or fewer, and did they ever deliver. Posts rolled in fast and furiously, nearing 150 in number as of this writing.

Some readers kept their posts focused strictly on investing and other money matters; living frugally and managing downside volatility were key themes among many posts. Other posters interpreted their assignments more expansively; their comments reflect the view that a successful retirement depends on a lot more than portfolio performance.

Although I've tried to summarize the key themes in this article, there were many many more worthwhile posts than I could excerpt here. Please click on this link (http://socialize.morningstar.com/NewSocialize/forums/p/301800/3222133.aspx#3222133) to read the complete thread or share your own philosophy on managing your assets during retirement.

'I Just Want to Be Comfortable'Many users' retirement-related investment philosophies revolve around frugality, both in the years leading up to retirement and during it.

Tommygr9 dispensed this simple formula: "Save like mad. Live below your means."

Bujia is on the same page. "Before retirement: save and invest. After retirement: spend less than you earn."

Lsulaw10 provided a rule of thumb for how much to save, advising, "Save 10% of your income. Be disciplined, be consistent, stay diversified."

Melankfo believes that the starting point for financial success during retirement revolves around having reasonable--and realistic--goals. "I don't want to be rich--I just want to be comfortable."

Several posters also weighed in on the virtues of getting started early. Cliff, keying off of Albert Einstein's famous quote, advised, "Use the 'most powerful force in the universe' . . . compounding!"

Excerpt from:
Your Retirement-Planning Philosophy, in 15 Words or Fewer

WARSAW, Poland (AP) Thousands of people from across Poland demonstrated noisily Friday outside Parliament to protest government plans to raise the retirement age to 67.

The law currently allows women to retire at age 60 and men at 65, but Prime Minister Donald Tusk wants to raise the retirement age to 67 for all Poles, saying it will increase pensions while reducing state debt.

The plan, supported by many economists, has angered the public. The unions are deeply unsatisfied by a new agreement the ruling coalition parties reached Thursday that would allow people to go into partial retirement earlier but with lowered monthly payments for the rest of their lives.

Piotr Duda, head of the Solidarity trade union, said the plan gives Poles the choice of "either working until death or quickly dying of hunger."

The protesters, blowing horns and carrying Solidarity white-and-red banners, were equally vocal.

"People are not strong enough to work as long as machines, 48 years, it is physically impossible," said Arkadiusz Maziar, a 40-year-old coal miner from Zory, in southern Poland.

"Tusk is an office clerk and he will never understand this. I am here to defend the people," he said.

Danuta Nowaczek, a 50-year-old cook from Zabrze, in the South, does not believe that longer work would markedly improve her pension, or that she will live to benefit from it.

"This is a joke, this plan and I don't want to work longer," Nowaczek said. "My father did not even live to get his retirement" at 65.

The crowd showed their anger as the lawmakers were debating a motion signed by some 1.4 million Solidarity supporters to hold a referendum on the matter.

See original here:
Polish workers protest plan to hike retirement age

The Great Recession of 2008-09 blew up many a retirement plan, and now we have the data to prove it and finally understand just how damaging the boom and bust cycle has been. The Employment Benefit Research Institute (EBRI) Retirement Confidence Survey was published this month and the news is grim.

How could it not be? For the last 15 years, far too many Americans jumped from one asset bubble (rising stocks in the late 1990s into early 2000) to another (real estate from 2000-06), hoping that the increasing value of the asset would do the work to fund retirement, instead of relying on boring old savings. I can recount dozens of conversations with former clients who said some variation of, "Why do I need to save so much if I keep earning 12 percent a year on my retirement funds?" or "I'll just sell my house and use the equity for retirement." It was a hard sell to convince these folks that saving was a more reliable way to reach their retirement goals.

The problem was that the two asset bubbles made many people lazy. Americans went from a personal savings rate of about 8 percent in 1985, down to 1.5 percent in 2005, back to 4.6 percent today. The combination of a falling savings rate and two bubbles bursting has put many in a precarious state as they approach retirement.

According to EBRI, Americans' confidence in their ability to retire comfortably is at historically low levels. Just 14 percent are very confident they will have enough money to live comfortably in retirement. Part of the reason why confidence plunged is because the Great Recession decimated asset values so severely. Household net worth still remains seven percent below where it was in July 2006, the peak of the nation's housing bubble. But an equally significant impediment to a healthy retirement is the weak labor market. Forty-two percent of those surveyed said job uncertainty is the most pressing financial issue facing most Americans today.

Without income from a job, retirement account values remain stagnant, and households are forced to spend savings, which have been depleted over the past five years. In fact, 60 percent of workers report that the total value of their household's savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.

With such a low level of savings, 25 percent of workers have changed their expectations about when they might stop working. In 1991, 11 percent of workers said they expected to retire after age 65; and now in 2012 that number has grown to 37 percent. Most experts believe that the number of people who will continue to work throughout their 60s will increase dramatically.

There is one major risk that arises with the "I'll just keep working" retirement plan: What if you can't keep working, either because your job doesn't exist or because you physically aren't able to? Half of the current retirees surveyed say they left the workforce unexpectedly due to health problems, disability or changes at their employer, such as downsizing or closure.

These statistics point to an obvious solution: save more as quickly as you can. How much more? That depends on your specific circumstances. As I noted in a recent article ("What's your retirement number?"), EBRI has a terrific calculator called the "Choose to Save Ballpark E$timate," which should help the 56 percent of workers who have not tried to calculate how much money they will need to have saved by the time they retire in order to live comfortably in retirement.

There aren't a lot of easy answers, but I have seen great progress when retirees and near-retirees focus on the parts of their financial lives over which they exert control -- their expenses. For many, this may mean downsizing, while for others, it may mean reducing spending on everyday discretionary items or accelerating debt pay-down. It's never too late to start building your retirement confidence.

Distributed by Tribune Media Services, Inc.

See the original post here:
Building Retirement Confidence

TORONTO, ONTARIO--(Marketwire -03/30/12)- A number of Canadians aged 54 and under will be affected by changes to Old Age Security (OAS) announced in the Federal Budget. In 10 years the age for OAS eligibility will rise from 65 to 67.

OAS benefits are currently paid to Canadians aged 65 and over; individuals can receive up to a maximum of nearly $6,500 per year based on meeting residency requirements.

According to a report by Harris Decima commissioned by the BMO Retirement Institute, 32 per cent of Canadians aged 25-54 will rely on OAS, the Canadian Pension Plan (CPP) and the Quebec Pension Plan (QPP) as their primary source of retirement income.

Tina Di Vito, Head of the BMO Retirement Institute, advises Canadians to adopt a long-term approach to saving for retirement and understand the right tax strategies to maximize old age security benefits. These strategies, despite the changes announced in the Federal Budget, enable income to be earned from the most advantageous sources.

BMO offers tips on how Canadians can prepare for retirement:

To learn more about retirement income strategies and to read Retirement Institute reports, please visit: http://www.bmo.com/retirementinstitute.

Get the latest BMO press releases via Twitter by following @BMOmedia.

This study was conducted by Harris/Decima using their proprietary online panel. A total of 1,008 Canadians ages 25 to 64 were surveyed between November 10th and 24th, 2011.

Excerpt from:
Changes to Old Age Security-BMO Retirement Institute Offers Tips on How Canadians Can Prepare for Retirement

Forced retirement is a fact of life for a growing number of baby boomers and can be just as traumatic as divorce or the loss of a family member. When you're suddenly facing retirement because your company has closed, given you a buyout or eliminated your job, myriad financial issues can have an immediate impact on your goals and dreams for the future.

According to a 2011 survey from the Employee Benefit Research Institute, 45% of retirees said they stopped working earlier than they expected. The three most common reasons were poor health (cited by 63%), corporate downsizing or closures (23%), and the need to care for a spouse or other family member (18%).

Christine Moriarty, CFP and the founder of MoneyPeace, recommends that you be defensive in case you have to retire early by following time-tested advice, especially if you're in your 50s. "Have enough money liquid at a local bank to cover your basic needs for at least six months," she says. "This way, you won't have to react to a circumstance and can adjust in a more structured way after the immediate crisis has passed."

Moriarty also suggests that boomers consider paying off their mortgage as soon as they can. "The lower your home loan, the more manageable it is in times of crisis."

Not only is this sound financial advice during a difficult financial transition, but a Consumer Reports survey published in 2010 found that about three-quarters of retired people who had paid off their large debts, including mortgages, had a high level of satisfaction with their lives.

Whatever the reason for a forced retirement, it stirs up a host of big questions and issues such as: Should I start receiving Social Security immediately? Live off my savings or take distributions from a retirement plan? Do I need to reshuffle my investments to make up for lost savings or shield myself from future losses?

Many forced retirees need to apply for Social Security right away in order to pay everyday bills, according to Andy Landis, author of "Social Security: The Inside Story." But any decision on whether to accept early Social Security benefits at a reduced rate or delay benefits for higher future payments does not have to be permanent. "For those who aspire to return to the workforce, the system and payment calculations don't penalize you; they actually adjust automatically for you," Landis says.

That means if you return to work and earn more income than you're allowed, your Social Security payments will automatically stop. Landis says when you reach your full retirement age, you'll be re-credited for any months in which payment was halted.

Your Social Security payments could increase as a result of inflationary adjustments, and if you resume working and paying into the system, your lifetime Social Security earnings could increase as well.

Knowing how and when to use various retirement savings is important when you're suddenly forced to retire. The options for those with retirement plans such as 401(k)s and 403(b)s can be dizzying and add to an already stressful and anxious time.

Read the original:
Forced Into Retirement? Here's How to Cope

When he was 39, Mark Brandemuehl bought a home in Colorado properties with the intention he'd retire there.

But until the day comes when he leaves the workforce and enter retirement, he plans to rent out the properties and have them pay for themselves until he is ready to move in. With rock-bottom home prices and mortgage interest rates hovering around 4%, Brandemuehl, who is on the hunt for his third property, isnt the only one with this idea.

A 2011 survey by vacation rental booking site HomeAway.com shows 14% of vacation rental owners purchased their home to be used during retirement and are renting it out in the meantime. Some homeowners rent out their second home for a limited time each year while others seek longer terms with one-year or longer leases.

The National Association of Realtors reports rental income influenced 71% of second home buyers who purchased in 2011, nd 91 percent of them plan to rent their new purchase within 12 months.HomeAway.com members generate $28,000 annually by renting their home about 19 weeks a year, and half of the sites owners can cover 75% or more of their mortgage by renting to travelers.

Renting out a house until retirement rolls around offers many advantages. Real estate yields are usually much higher than the average stock market return, and buying a retirement home for the future can provide enough cash flow to pay for and even completely payoff the home by the time you move in, says Brandemuehl, who is also vice president of real estate site Movoto.com. Retirement and vacation destinations usually provide a reliable, gainfully employed stable of tenants; Brandemuehl's properties have been vacant less than six months total in the last seven years.

But being a landlord requires a lot of work and extensive planning. You could potentially become upside down on your investment or encounter heated or confrontational situations with tenants, says Mia Melle, a broker with property management firm RentToday.us.

You might also decide not to live where you bought the property, or the property could unexpectedly become vacant or misused. Higher-end homes, are harder to rent, according to Brandemuehl, so be prepared to advertising heavily.

Here are six expert tips to consider before buying a retirement home to rent:

Run the numbers. Renting out a second home can be a great opportunity if the rental income covers your mortgage, taxes, insurance, and provide an additional cushion for unexpected expenses, says Jean Allard, senior real estate specialist and vice president of Keystone Real Estate Group. But experts warn that you shouldnt buy a home unless you can afford the payment on your own in the event that there are vacancies. Ask a real estate agent how much your home could command in the vacation rental and long-term rental markets.

Be mindful of aging and rentability. Find a home with a single level so that stairs will not be an issue, Allard says. A retirement home should be ready to accommodate physical needs as they change. It should also need minimal work. Entry-level homes that are three bedrooms, two baths, around 1,300 square feet, and near (and not in) communities with Homeowners Associations tend to rent well, says Aimee Elizabeth, real estate investor and author of Poverty Sucks! How to Become a Self-Made Millionaire. You could buy a four bedroom, 2,000-square foot house that might cost you twice as much, but you wouldn't get twice the rent. You'd be lucky to get an extra $100 to $200 a month, she says.

Excerpt from:
Renting to Retirement: Six Factors to Consider

These are some of the major stories Report on Business followed this week. Get the top business stories on weekdays on BlackBerry or iPhone by bookmarking our mobile-friendly webpage.

Follow Michael Babad and Globe top business news on Twitter

Whither our youth I scraped in under the wire - well, a little more, actually - on the changes that will affect retirement in Canada. As did much of my generation.

That's small comfort to our children, many of whom are already suffering the after-effects of the financial crisis and recession, and who now also face retirement, interrupted.

Canada's Finance Minister unveiled a budget this week that will, in time, reset the age of retirement to 67 by hiking the age of eligibility for the Old Age Security benefit, worth more than $6,000 a year, from 65. That begins in 2023, and will be phased in, so it doesn't capture the Boomers.

It will, though, hit their kids, many of whom are already struggling with a youth unemployment rate of more than 14 per cent and, according to studies, face a hit to earnings because they graduated in a recession.

Thirty-two per cent of people between the ages of 25 and 54 will be relying on OAS and Canada Pension Plan and Quebec Pension Plan benefits as their prime source of income in retirement, according to a Harris Decima survey commissioned by Bank of Montreal's BMO Retirement Institute.

The change, along with others announced in Thursday's budget, is meant to help sustain the OAS program, which the government warns will cost $108-billion by 2030, compared with $38-billion in 2011.

As some observers note, retirement is still a long way away for many of those affected, and they could start planning immediately.

"At least for those still thinking about retiring at 65, they should be saving a higher percentage of their income now to raise a larger pool of private funds to draw down," said chief economist Avery Shenfeld of CIBC World Markets. "In practice, as opposed to theory, we dont expect that degree of rational planning to materially hit Canadas savings/consumption mix in the near term."

Read the original post:
Retirement, Interrupted: A bleaker outlook for our kids

Video Link: https://www.youtube.com/watch?v=n3sAy_i8Dqs

29-03-2012 20:24 Months of speculation about changes to Old Age Security ended with today's budget. But, do the changes calm concerns among Canadians or fuel more anxiety?

Read more:
Retirement Takes a Hit - Video