Data and Research September 8, 2016

Certain Ages a Retirement Planning Trigger for Some

Thirty-six percent of respondents to a survey said they started planning at a significant birthday.
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A recently-released study by the LIMRA Secure Retirement Institute found that Americans aged 55 to 75 with financial assets of at least $10,000 began planning for retirement when they reached a specific age. This can be said about 36% of respondents.

Twenty percent of the people who said a significant birthdate triggered retirement planning said they began planning at age 65–the most widely recognized age of retirement in the U.S.

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Eleven percent began at age 60; 10% started at ages 55 and 70; and 7 % began at age 62 — the earliest age that one can apply for Social Security.

But not all of these groups are committed to a thorough retirement plan, the research suggests.

The study found that while 75% of pre-retirees and retirees who work with financial professionals have some sort of retirement plan, only 16% of those have a formal written plan.

Prior Institute research shows Americans who have a formal written retirement plan are more likely to feel more confident they are saving enough for retirement, and more than twice as likely to feel very prepared for retirement as those without one.  Pre-retirees and retirees with a formal written plan are also more likely to convert a portion of their assets into an annuity within two years. 70 percent of those with a formal written plan purchase a product to implement their retirement plans, according to the study by LIMRA.

Products September 8, 2016

Transamerica Defines the ‘DB Plan Continuum’

Guidelines published by Transamerica highlight the importance of clean data and careful planning when it comes to minimizing defined benefit plan costs. 

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“Defined Benefit Plan Continuum,” a new white paper from Transamerica, helps plan sponsors and retirement advisory professionals “navigate the best course for their pension plan and better manage the plan’s costs over time.”

The research provides guidelines and direction to plan sponsors, advisers and consultants in effectively evaluating benefit design options and choosing a course that “lowers defined benefit plan costs while mitigating risks that might potentially affect their company’s bottom line.”

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“Employers are striving to provide meaningful employee benefits while maintaining strong financial performance,” explains Transamerica Chief Operations Officer Blake Bostwick. “Quality reporting allows a plan sponsor to better review the plan’s demographics and financials, and enables the actuaries to provide more precise forecasts for review.”

Bostwick adds that “a thorough plan review using high quality data can allow plan sponsors to better manage the plan, fine tune reporting and help refine budgeting.”

“The Defined Benefit Plan Continuum” is available to financial professionals on Transamerica’s New Age of Advice website and to plan sponsors by calling Transamerica at 800-770-6797.

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