Americans Apprehensive About Retirement

June 19, 2007 (PLANSPONSOR.com) - Nearly one-third of American adults describe themselves as apprehensive, panicked, or clueless about their retirement, according to results of a survey conducted on behalf of the Securities Industry and Financial Markets Association (SIFMA).

Investment Executive reports that a quarter of respondents on the verge of retirement (ages 55-64) acknowledged they have not done enough to prepare. However, discomfort about the prospect of retirement is higher for the 45-54 age group than it is for those younger or older – with 38% of respondents in this group expressing some level of apprehension or related concern about retirement.

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The apprehension is not likely to decline as they get closer to retirement, as 30% of adults age 55-64 also described their emotional state regarding their financial preparation for retirement as uncomfortable.

Respondents who have consulted a financial professional were much more likely to say they are comfortable/confident about retirement than those who have not (78% vs. 58%), the news report said.

SIFMA found that the problem is not just that Americans do not or have not saved enough. Nearly 30% of respondents said they are focused on finding the money that could potentially be saved, while another third said they may have the money, but they do not know how to manage it. Thirty-four percent reported struggling with the challenges of getting started, of focusing on saving, or of finding the right kinds of help.

The survey is the result of a telephone poll of 1,000 respondents and was conducted May 29-31 by Artemis Strategy Group, according to Investment Executive.

Does It Feel Good to Do Good?

June 18, 2007 (PLANSPONSOR.com) - Researchers at the University of Oregon claim that giving money to a good cause stimulates the same pleasure centers in a group of women volunteers as food and sex.

That feeling came even when the contribution was mandatory, like a tax. However, the 19 female student test subjects felt even better when they voluntarily made a donation, according to Ulrich Mayr, a psychology professor at the University of Oregon.

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In the study, which appeared in the journal Science , Mayr and two economists gave the 19 female student volunteers $100 each and then tracked their brain activity in a functional magnetic resonance imaging scanner.

The women were shown their money automatically being transferred from their account to a local food bank. When the money reached the food bank account, it activated portions of the brain (specifically, the caudate nucleus and the nucleus accumbens) known for pleasure. The effect was even greater when they got to choose to give the money away.

A “Warm Glow”

According to the article, altruism sometimes is manifested as a “warm glow” associated with the act of giving. In that case, economists speculate, the act is not entirely selfless because the giver makes the donation in order to feel good (this group was referred to as “egoists”). But economists have also proposed that not all warm glows are self-interested – that some may have positive emotions wash over them just from witnessing good deeds. This is called “pure altruism,” and it may be motivating society’s biggest givers (altruists reportedly give twice as much as the egoists).

As it turns out, “That very same brain area not only tracks what is good for us, but what is good for others,” Mayr said in a phone interview with Reuters. “The fact that we find pleasurable activity in those mandatory tax-like situations strongly suggests the existence of pure altruism,” he said.

Of course, there may be a difference between giving away a fictional $100 that has been given to you for an experiment – and having $100 of your own money taken from you.


You can hear an interview with Ulrich Mayr at http://podcasts.aaas.org/science_podcast/SciencePodcast_070615.mp3

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