Retirement Security SmartBrief

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November 14, 2012

Financial and wealth management news for the retirement community

Top News

How one company designed a 401(k) with guaranteed payouts
United Technologies has designed a 401(k) plan that provides its workers with regular paychecks throughout their retired lives. The company, which recently closed its pension plan to new employees, is one of the first major employers to include annuities in its 401(k) plan, and it automatically enrolls workers who don't opt out. The New York Times (tiered subscription model) (11/13)

Industry Update

Poll: Parents, adult children have a financial disconnect
A survey indicates that parents and their adult children often are not on the same page about their finances. For example, the Fidelity Investments poll found that 24% of adults think they'll have to help their parents financially, but 97% of parents say otherwise. The Washington Post/The Associated Press (11/14)

Pensions aren't as great as employees think, experts say
About half of workers in a Towers Watson survey said they'd rather have a pension than the chance to earn a bigger bonus, but many workers may be overestimating the value of traditional pensions, experts say. For example, in 1980, private-pension payments only made up about 8% of retirees' overall income, according to the Investment Company Institute. Also, many employees who retired with pensions during this time were ineligible for full benefits, ICI economist Peter Brady said. MarketWatch/Encore blog (11/13)

Commentary: Middle-class retirement accounts are falling short
Middle-class Americans are not only falling short in their retirement savings, but also lack knowledge about how much they'll be able to withdraw without outliving their funds, consulting actuary Steve Vernon writes. He cites a Wells Fargo survey in which respondents' median estimate for necessary retirement savings was $300,000, while the median amount they had saved so far was $25,000. CBS MoneyWatch (11/13)

How raising the retirement age hurts lower-income workers
Raising the retirement age could help preserve Social Security's long-term funding while recognizing demographic changes. But for lower-income workers, such a shift could be "punitive as well as heartless," Philip Moeller writes. That's because lower-income people typically are in more physically demanding jobs and can't work longer, so they would receive significantly lower benefits. U.S. News & World Report/The Best Life blog (11/13)

Financial Literacy

Tax strategies to survive a spill over the "fiscal cliff"
Andrea Coombes suggests several moves that retirement savers may want to consider in case lawmakers don't avert the "fiscal cliff," including converting your IRA to a Roth IRA, ramping up next year's retirement contributions to avoid a bigger tax hit and delaying deductions until 2013. Two other strategies: Make gifts to heirs to reduce an estate's value and pay college bills this year, if possible. MarketWatch (11/13)

On the Economy

Hiring outlook for older workers could be improving
Fewer employers may resist hiring older workers as America's workforce ages, experts say. Among the fields where older employees have the best chances are tax preparation, education, health care and recruiting. MarketWatch (11/13)

Building Your Practice

How to make your LinkedIn profile work harder
To ramp up your LinkedIn profile, focus less on the employment-history section and instead write an energetic narrative summarizing your career and expertise, writes Craig Faulkner, CEO of FMGSuite. Two other tips: List your specialties and opt for a customized URL that uses your own name. Financial-Planning.com/A Better Practice blog (11/12)

SmartQuote

Many of our fears are tissue-paper-thin, and a single courageous step would carry us clear through them."

--Brendan Francis Behan,
Irish writer

Retirement Security Coalition Advisory Board Members
American Council of Life Insurers Association for Financial Counseling and Planning Education Defined Contribution Institutional Investment Association National Endowment for Financial Education Women's Institute for a Secure Retirement	American Savings Education Council Certified Financial Planner Board of Standards Employee Benefits Research Institute ICI Education Foundation Jump$tart Coalition for Personal Financial Literacy Society for Financial Education and Professional Development	ASPIRA Consumer Federation of America FINRA Investor Education Foundation Financial Services Institute Leadership Education for Asian Pacifics, Inc. US Pan Asian American Chamber of Commerce

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	Recent Retirement Security SmartBrief Issues: Tuesday, November 13, 2012 Monday, November 12, 2012 Friday, November 09, 2012 Thursday, November 08, 2012 Wednesday, November 07, 2012			Lead Editor: Ashley Fletcher Frampton Mailing Address: SmartBrief, Inc.®, 555 11th ST NW, Suite 600, Washington, DC 20004