Benefits November 29, 2012

Most Women Lack Retirement Savings Goal

November 29, 2012 (PLANSPONSOR.com) – Most women lack a specific retirement savings goal, which may link to higher levels of financial stress.
Reported by

A TD Ameritrade Holding Corp. survey revealed 75% of women have no specific retirement savings goal, and nearly one in four (22%) older than 23 have not started saving for retirement yet, compared with 13% of men.

The study also found 38% of women started saving for retirement after the age of 34. Furthermore, 30% of women anticipate they will be financially worse-off in retirement compared with their male counterparts (23%), and 48% of women said they are not looking forward to retirement.

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When female investors were asked what amount they wanted to have set aside for retirement, the average was $1.8 million while men said $1.3 million. In addition, women said they expect to need retirement income for nearly 20 years, which, assuming they retire in their early 60s, is on target with the U.S. Census Bureau’s average life expectancy for women of 80.5 years.

Starting young and saving regularly may alleviate stress, the study suggested. Women who began saving for retirement before age 30 and who contribute regularly to their retirement savings feel less anxious (28% vs. 43%), less frustrated (20% vs. 36%), less regretful (9% vs. 20%), and more positive (42% vs. 27%) and satisfied (33% vs. 16%) about retirement compared with those women who started saving after age 30 and who do not contribute regularly to retirement savings.

The online survey was conducted with 2,029 U.S. residents from March 27 to 28, 2012, by Head Research on behalf of TD Ameritrade Holding Corporation.

Products November 29, 2012

Firms Introduce Stable Value Collective Trust

November 29, 2012 (PLANSPONSOR.com) – New York Life Investments and Reliance Trust Company have introduced a stable value fund.
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The Reliance Trust New York Life Anchor Account Series I is available through the Reliance Trust Company Stable Value Employee Benefit Investment Trust, a collective trust established by Reliance Trust Company. Investment in the collective trust provides plans with a choice of three stable value share classes. The collective trust is intended to target the small-plan defined contribution retirement market.   

The collective trust is valued daily and seeks to preserve principal and offer competitive yields. The stable value fund held by the collective trust is managed by New York Life Fixed Income Investors. The new collective trust invests in a diversified portfolio of fixed-income investments within the stable value fund, through a New York Life group annuity contract. Reliance Trust will serve as trustee and manager for the collective trust.  

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“In this long-term, low-interest rate environment, investors are seeking principal protection with yield, as opposed to current near-zero percent rates from money market vehicles. Now, defined contribution plans of all sizes can tap into a stable value offering quite similar to what larger retirement plans can access,” said Steven Dorval, managing director of defined contribution investments at New York Life Investments Group.

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