WASHINGTON--(BUSINESS WIRE)--

A new survey says Americans confidence in their ability to afford a comfortable retirement remains at historically low levels in the face of job uncertainty and financial insecurity.

The 2012 annual Retirement Confidence Survey, released today by the nonpartisan Employee Benefit Research Institute (EBRI) in Washington, and co-sponsored by the Principal Financial Group, finds only 14 percent of Americans are very confident they will have enough money to live comfortably in retirement1. Workers with the most debt have the least confidence.

Current worries appear to overshadow long term planning. Forty-two percent of workers identify job uncertainty as the most pressing financial issue facing most Americans today. The percentage of those saving for retirement continues to decline, many report virtually no savings and investments and most workers have not even tried to calculate how much they need to save.

But the survey data show that retirement confidence levels are measurably higher (20 30 percent) among workers whove taken positive financial actions, including saving in an employer-sponsored plan, getting advice from a financial professional and calculating retirement savings needs.

Especially in an uncertain economy, having a plan and taking action helps Americans focus on what they can control and builds a realistic sense of optimism about the future , said Greg Burrows, senior vice president of the Principal Financial Group, long-time underwriter of the Retirement Confidence Survey. Working with a financial professional to set goals, and putting aside as much as possible, helps with short-term needs and paves the way for more security in the long term.

This is the 22nd annual Retirement Confidence Survey, making it the longest-running annual survey of its kind in the nation. Among other key findings available on the EBRI website at http://www.ebri.org:

Little savings: Many workers report they have virtually no savings and investments. In total, 60 percent of workers report that the total value of their households savings and investments, excluding the value of their primary home and any defined benefit plans, is less than $25,000.

Fewer saving: Two-thirds (66 percent) of workers report they and/or spouses have saved for retirement, a continuing decline from the 75 percent measured in 2009. Fifty-eight percent report currently savings versus 65 percent in 2009.

Workers expected retirement age: In 1991, 11 percent of workers said they expected to retire after age 65, and by 2012 that has grown to 37 percent.

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2012 Retirement Confidence Survey: Job Insecurity, Debt Keep Retirement Confidence at Historic Lows

NEW YORK (CNNMoney) -- Concerns about job security and piles of debt have left American workers more pessimistic about retirement than ever.

Only 14% of workers feel "very confident" they will have enough money to live comfortably in retirement, while 38% of workers say they are "somewhat confident" and 23% say they are "not at all confident," according to a survey by the Employee Benefit Research Institute. The results have remained relatively unchanged since hitting an all-time low in 2009.

Many respondents said that saving for retirement has taken a backseat to more immediate financial concerns. About 42% of survey respondents said a lack of job security is the biggest issue they are facing, with only 28% of workers saying they feel very confident they will have a paying job for as long as they need it. Meanwhile, a whopping 62% -- nearly two-thirds -- of workers said their debt is a problem.

As a result, many workers barely have any savings, with about 60% of workers reporting total savings and investments of under $25,000 (excluding the value of their home and benefit plans). About 30% of these respondents said they have less than $1,000 in savings.

In addition, far fewer people are saving for retirement. The percentage of workers who said they were putting money away for retirement fell to 66% in 2012 from 75% in 2009. People earning less than $35,000 account for the majority of that decline -- most likely because they have either lost their jobs or are worried they may be out of work in the future, the report found.

"A lot of the people who have either lost their jobs or are worried about losing their jobs are trying to put a little money away for a rainy day and just don't have money to put into savings right now," said Jack VanDerhei, EBRI research director and co-author of the report.

Out of those who have started planning and saving, 67% say they are behind schedule. This is unchanged from 2011, but 12 percentage points higher than the 55% of workers who were behind schedule in 2005.

Medical costs are also a major concern, with only 13% of respondents reporting that they are very confident they will be able to afford medical expenses when they retire. Only 26% of workers are very confident that they will even have the money to pay for basic expenses.

While workers' lack of saving and confidence in their ability to retire comfortably is troubling, VanDerhei said it's good that people are becoming more realistic about their financial situations. In 2009, following the economic downturn, many workers clung to over inflated expectations about their retirement future.

However, instead of putting more money into savings, more people are opting to delay retirement, with 37% of respondents expecting to retire after age 65. That's up from only 11% in 1991.

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Workers still pessimistic about retirement

NEW YORK (CNNMoney) -- Concerns about job security and piles of debt have left American workers more pessimistic about retirement than ever.

Only 14% of workers feel "very confident" they will have enough money to live comfortably in retirement, while 38% of workers say they are "somewhat confident" and 23% say they are "not at all confident," according to a survey by the Employee Benefit Research Institute. The results have remained relatively unchanged since hitting an all-time low in 2009.

Many respondents said that saving for retirement has taken a backseat to more immediate financial concerns. About 42% of survey respondents said a lack of job security is the biggest issue they are facing, with only 28% of workers saying they feel very confident they will have a paying job for as long as they need it. Meanwhile, a whopping 62% -- nearly two-thirds -- of workers said their debt is a problem.

As a result, many workers barely have any savings, with about 60% of workers reporting total savings and investments of under $25,000 (excluding the value of their home and benefit plans). About 30% of these respondents said they have less than $1,000 in savings.

In addition, far fewer people are saving for retirement. The percentage of workers who said they were putting money away for retirement fell to 66% in 2012 from 75% in 2009. People earning less than $35,000 account for the majority of that decline -- most likely because they have either lost their jobs or are worried they may be out of work in the future, the report found.

"A lot of the people who have either lost their jobs or are worried about losing their jobs are trying to put a little money away for a rainy day and just don't have money to put into savings right now," said Jack VanDerhei, EBRI research director and co-author of the report.

Out of those who have started planning and saving, 67% say they are behind schedule. This is unchanged from 2011, but 12 percentage points higher than the 55% of workers who were behind schedule in 2005.

Medical costs are also a major concern, with only 13% of respondents reporting that they are very confident they will be able to afford medical expenses when they retire. Only 26% of workers are very confident that they will even have the money to pay for basic expenses.

While workers' lack of saving and confidence in their ability to retire comfortably is troubling, VanDerhei said it's good that people are becoming more realistic about their financial situations. In 2009, following the economic downturn, many workers clung to over inflated expectations about their retirement future.

However, instead of putting more money into savings, more people are opting to delay retirement, with 37% of respondents expecting to retire after age 65. That's up from only 11% in 1991.

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Retirement scare: 60% of workers have less than $25,000 saved

Concerns about job security and piles of debt have left American workers more pessimistic about retirement than ever.

Only 14% of workers feel "very confident" they will have enough money to live comfortably in retirement, while 38% of workers say they are "somewhat confident" and 23% say they are "not at all confident," according to a survey by the Employee Benefit Research Institute. The results have remained relatively unchanged since hitting an all-time low in 2009.

Many respondents said that saving for retirement has taken a backseat to more immediate financial concerns. About 42% of survey respondents said a lack of job security is the biggest issue they are facing, with only 28% of workers saying they feel very confident they will have a paying job for as long as they need it. Meanwhile, a whopping 62% -- nearly two-thirds -- of workers said their debt is a problem.

As a result, many workers barely have any savings, with about 60% of workers reporting total savings and investments of under $25,000 (excluding the value of their home and benefit plans). About 30% of these respondents said they have less than $1,000 in savings.

In addition, far fewer people are saving for retirement. The percentage of workers who said they were putting money away for retirement fell to 66% in 2012 from 75% in 2009. People earning less than $35,000 account for the majority of that decline -- most likely because they have either lost their jobs or are worried they may be out of work in the future, the report found.

Super young retirement savers

"A lot of the people who have either lost their jobs or are worried about losing their jobs are trying to put a little money away for a rainy day and just don't have money to put into savings right now," said Jack VanDerhei, EBRI research director and co-author of the report.

Out of those who have started planning and saving, 67% say they are behind schedule. This is unchanged from 2011, but 12 percentage points higher than the 55% of workers who were behind schedule in 2005.

Medical costs are also a major concern, with only 13% of respondents reporting that they are very confident they will be able to afford medical expenses when they retire. Only 26% of workers are very confident that they will even have the money to pay for basic expenses.

How I'm easing into retirement

Originally posted here:
Retirement confidence remains at record low for workers

SCHLADMING, Austria (AP)Austrian skier Mario Scheiber announced his retirement Monday after a career marred by knee and shoulder injuries.

I am not willing to take the risks involved in ski racing anymore, said Scheiber, who had an unsuccessful comeback season following last years downhill training crash in Chamonix, France, when he broke his nose and shoulder blade.

The crash kept him out of the world championships and Scheiber considered quitting then, but decided to continue as preparations for the new season initially went well. However, he had to pull out of the North-American leg of the World Cup in November with back problems.

The whole season has been one to forget, Scheiber said. I did not manage to reach my old level again. The many injuries Ive had during my career, especially my right knee, forced me to this decision.

Scheiber, who made his World Cup debut at a GS in Lillehammer, Norway in 2003, sat out the entire 2005-06 season after tearing ligaments in his right knee and was sidelined for months with a left shoulder injury two years later.

Scheiber, who won the giant slalom title at the 2003 junior world championships, finished on a World Cup podium 13 times but failed to win a race. He finished fourth in the downhill at the 2010 Vancouver Olympics.

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Austrian skier Scheiber announces retirement

retirement

Highlights

Retirement Fundamentals Of Retirement Plans

If you're among the lucky Americans whose employers offer a workplace retirement plan, it behooves you to take full advantage of it. True, some plans will automatically enroll you, so all you have to do is show up to work every day and do your job. If you don't want to join, you have to actively take steps to opt out of the plan.

It would be a mistake to opt out. In fact, it would be a mistake to allow yourself to be automatically enrolled without getting involved in the decisions pertaining to your plan. Otherwise, you may end up contributing just a paltry amount, and your money may go into a fund that's too conservative or too risky or too expensive for your taste.

In this package of stories, Bankrate covers the fundamentals of retirement plans -- everything you ever wanted to know about 401(k) plans, 403(b) plans and 457(b) plans -- plus a whole lot more.

For the uninitiated, 401(k) plans are found in the private sector, 403(b) plans in the nonprofit area and 457(b) plans are offered in state, county and municipal workplaces. All have their arcane sets of rules, and all provide a way for you to save money in a tax-deferred account. Some are stranger than others. Bankrate's story, "Shakeout in 403(b) plans affects teachers," uncovers the unusual situation in the education market and explains why teachers are dropping out of their 403(b) plans.

If you work for a small business that doesn't offer a plan -- and the majority do not -- then it's time to lobby the boss for change. Employers can pick from several different types of plans ranging from simple payroll deduction individual retirement accounts to complex defined benefit plans that require serious commitment. Bankrate's story, "Retirement plans for small biz," covers the nuts and bolts of 10 different retirement plans designed specifically for small businesses and self-employed individuals.

The government devised several different types of plans in order to entice people to save for retirement, even at the expense of federal tax revenue. Retirement savings in workplace plans keep money out of government coffers -- contributions made on a pretax basis are not counted as income, so you dodge the tax bullet on those funds until it's time to take the money out.

To find out if you have a first-class 401(k) plan or a mediocre one, check out "What makes a 401(k) plan great." Get ready for changes in your corporate retirement plan as well. This year, sponsors of 401(k) plans will be required to break out all costs to plan participants, as discussed in the story, "401(k) plan fees to be unveiled." This event will surely be an eye-opener for everyone.

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Fundamentals of retirement plans

Most people spend less money in retirement than they did while they were working. Retired households spend a median of $31,365 annually, which is about 80 percent of the $39,945 working households spend, according to a recent Employee Benefit Research Institute (EBRI) analysis of Health and Retirement Study data. Annual expenses also decline steadily with age, falling by 19 percent between ages 65 and 75, and plunging 52 percent by age 95. The majority of study participants (66 percent) experienced a drop in retirement spending, while 16 percent of the households spent more money in retirement.

[See 21 Ways to Reduce Your Retirement Expenses.]

Retirees have lower expenses largely because they are able to eliminate work-related costs like commuting and office attire, and they no longer have to pay FICA taxes or save for retirement. But retirees often spend more on healthcare than people who are still in the workforce, especially if they develop a significant health problem that requires long-term care. Here's a look at the major ways costs change in retirement:

Housing. Housing is the single largest expense for both workers and retirees. Home-related expenses represent 47 percent of all costs for people ages 50 to 64, which declines to 44 percent between ages 65 and 74. "People probably finish paying off their mortgages, so they don't have to pay the mortgage anymore," says Sudipto Banerjee, a research associate at EBRI and author of the report. Downsizing to a less expensive house or condo or moving to a cheaper part of the country can also significantly decrease your housing expenses in retirement.

Healthcare. Health-related expenses are the only major cost that increases steadily and significantly with age. Health costs represent about 9 percent of most people's budget between ages 50 and 64. This number doubles to 18 percent after age 85. "As their health declines, it means more care and the cost of healthcare itself is increasing. The same amount of care costs more now," says Banerjee. "If you have to go into a nursing home or enter into some form of long-term care, that is going to significantly increase your expenses."

[See How to Save for Retirement on a Low Income.]

Transportation. You no longer need to commute to work in retirement. Transportation costs drop from 14 percent of the budget of 50- to 64-year-olds to 8 percent for those 85 and older. Couples who previously needed two cars can often get by with one.

Food and clothing. People tend to spend the same share of their income on food (12 percent) and clothing (3 percent) in retirement as they did while working. But there's certainly room to make cuts if you trade in your suits for jeans and eat more of your meals at home.

Gifts and donations. When grandchildren are born, many retirees spend more on gifts and trips to see them. Some retirees also plan bequests to relatives or charities. "The budget shares spent on donations and gifts go up a lot with age," says Susann Rohwedder, associate director of the RAND Center for the Study of Aging. "As people age, they may start to think they really don't need that money and might start to give it away."

[See 5 Surprise Retirement Costs.]

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6 Ways Spending Changes in Retirement

Video Link: https://www.youtube.com/watch?v=3nv89XZG1dM

06-03-2012 04:31 Timing Makes a Difference in Retirement

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Timing Makes a Difference in Retirement - Video

Video Link: https://www.youtube.com/watch?v=-F7Xmg_3jP4

06-03-2012 21:18 As Samajwadi Party is all set to take over from Mayawati, bureaucrats close to her are also on their way out. Uttar Pradesh cabinet secretary Shashank Shekar Singh has taken premature retirement from service with effect from March 9. Shashank, who had retired in May 2010 was given two years extension by Mayawati which is due to expire on March 31. It may be noted that his tenure as cabinet secretary was marred by controversies. In fact his appointment as cabinet secretary has been challenged in court several times. For more info log onto: alpha.newsx.com

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Uttar Pradesh cabinet secretary takes premature retirement -Newsx - Video

Retirement Perks Of A Government Retirement Plan

State and local government jobs may not seem like the height of glamour, but they aren't without their perks. Benefits such as pensions, plus access to tax-advantaged government retirement plans known as 457(b) plans, help make working at the county or municipal level more rewarding for local civil servants.

Employees of the federal government do not have a 457(b) plan; instead they have the thrift savings plan, which comes with its own idiosyncrasies.

A 457(b) is roughly analogous to a 401(k), but it comes with its own quirks.

"It's very similar in that you can only defer a certain dollar amount each year, and the amount you can defer is linked to the cost of living (indexes) as the 401(k) is," says Dominick Pizzano, a New Jersey-based employee benefits consultant at Milliman, an actuarial and consulting firm.

The contribution limit is $17,000 for 2012. If the plan allows it, a participant can make Roth contributions to his retirement account, paying taxes on the contribution before it goes into the account. Interest and earnings would be tax-free in retirement.

Also similar to the 401(k) is one of the catch-up provisions that allow workers older than 50 to put away extra money -- specifically an extra $5,500.

Now for the curve ball: 457(b) plans also may allow workers to squirrel away extra money starting three years before the so-called normal retirement age, which the plan specifies.

The normal retirement age can vary, but the special contributions can begin three years before that point.

"So if someone was to retire at 50, at 48 they could begin the 457 catch-up because it's three years prior to their retirement age. It's called the three-year rule," says Julia Durand, director at CalSTRS and president of the National Association of Government Defined Contribution Administrators, or NAGDCA.

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The perks of a government retirement plan