Investing February 14, 2002

Unemployment Claims Continue Downward Trend

February 14, 2002 (PLANSPONSOR.com) - The number of Americans seeking first time unemployment benefits shrank by 8,000 in the week ending February 9, according to data from the Department of Labor.
Reported by

The number fell to a lower than anticipated 373,000 from its revised 381,000 level the previous week.

Though the number is on a downward trend, it is still well above that reported the same time last year, when initial unemployment insurance claims were 344,000

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The four-week moving average, considered a better barometer of the unemployment situation because it irons out weekly fluctuations, fell for the fourth week in a row, to 376,000 from 381,500, its lowest level since August last year.

The states with the largest decreases in initial claims for the week ending February 2, the latest week for which data are available, were:

  • Georgia, where claims fell by -5,677, as layoffs in the textile industry moderated,
  • Texas, where the figure dipped by -2,577, as layoffs moderated in the manufacturing, information, and wholesale trade industries, and
  • Pennsylvania, down by -1,530, as fewer jobs were axed in the construction, food, primary metals and transportation industries

The latest report comes on the heels of yesterday’s data release from the Bureau of Labor Statistics, which showed a significant increase in mass layoff actions in the fourth quarter of 2001.



 

Benefits February 13, 2002

Slumping Economy Delays Retirement Dates

February 13, 2002 (PLANSPONSOR.com) - Workers expect to have to stay on the job longer than ever because of the nation's slumping economy, according to a new study.
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“Retirement Revisited – 2002”, the latest version of an ongoing series of surveys by UBS AG and the Gallup Organization, found that workers’ expected retirement is now 63.8 years, up almost a year from the 62.9 registered in June 1998.

Further, one in five workers said they expected to retire later than originally planned due to the weak economy – an average of delay of 4.4 years.

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And many workers don’t expect things to be completely rosy in their golden years.

According to the study, nearly a quarter of the sample says the sluggish economy will mean a less comfortable time after they stop working – a view shared increasingly by older workers. For example, 32% of those ages 50 to 59, and 38% of those 60 and older share that perspective, according to the study.

Planning for Retirement

One positive note, 70% say they have a retirement savings plan, up from 61% in 1998.

Not surprisingly, the survey found that the greater the amount of investable assets respondents held, the more likely they were to have a savings plan. For example, 86% of those with more than a $500,000 portfolio had such a blueprint.

Of those with a retirement plan, 19% said they had changed their asset allocations. Of these,

  • some 38% say they’re out of financial markets,
  • more than 70% say they’ve moved into less risky investments,
  • while 27%, chose riskier investments


According to the 2002 survey, investors intend to maintain a productive lifestyle after reaching retirement age, confirming an important trend first identified in the 1998 report. Indeed, 83% say they will continue to work after retirement.

The latest study is based on a January 2002 poll with 1,001 non-retired American investors conducted by UBS and the Gallup Organization. “Retirement Revisited – 2002′ is a follow-up to UBS’s 1998 study “Retirement Revisited”.

Read more about UBS’s investor surveys .

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