Administration May 3, 2011

Research Shows Women Getting a Jump on Retirement Readiness

May 3, 2011 (PLANSPONSOR.com) - Women’s confidence in their ability to plan for retirement has reached a three-year high, with 69% of women rating their confidence level as good or very good, according to a survey by Scottrade.
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In addition, for the first time in three years, the survey showed women’s confidence is on par with men’s (71% of men rate their confidence as good or very good).   

The survey found women’s savings tactics differ from men’s. More women are finding ways to increase their cash flow during retirement. Forty percent of women have structured their portfolios to include investments that will generate income during retirement, compared to 30% of men. And just over half (51%) of women say that generating income during retirement is more important to them now than it was one year ago.   

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In addition, more women have started to save for retirement than men (79% of women vs. 74% of men), and women are more likely to feel that they are saving enough for retirement (22% of women vs. 16% of men).   

Scottrade said women’s attitudes toward spending may be contributing to their positive retirement planning and saving momentum. While more than a quarter (28%) of men are concerned about controlling their urge to spend, only 17% of women share that concern – and that number is down from 27% of women in 2009.   

Further, women are more likely to take proactive steps to address financial concerns (94% of women vs. 88% of men). Although the top five actions taken to reduce financial stress were the same for both genders, considerably more women are taking those actions, which include using coupons (71% of women vs. 47% of men); spending less (69% vs. 57%); comparing prices to find the best deal (63% vs. 53%); cutting back on purchases like clothing, electronics, etc. (58% vs. 41%); and cutting back on entertainment (52% vs. 47%).  

The survey was commissioned by Scottrade and conducted online by Synovate, fielded with a nationally representative sample of 1,000 respondents, between January 13-18, 2011.
Products May 3, 2011

Paychex Acquisition Expands Services to Advisers

May 3, 2011 (PLANSPONSOR.com) - Paychex, Inc. (NASDAQ:PAYX), a provider of payroll, human resource, and benefits outsourcing solutions, announced it has completed the acquisition of ePlan Services, Inc., a provider of recordkeeping and administrative solutions to the defined contribution marketplace.
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The announcement said ePlan Services’ Web-based technology platform was designed to service the financial adviser market, with adviser tools and fee disclosure practices built into the offering.  This will allow Paychex to expand its service offering to financial advisers while providing greater transparency into fee structures as the market shifts to full disclosure models to comply with consumer and legislative demand.   

In addition to giving the investment adviser market a more robust fee-based service offering, the acquisition provides another way for small business owners to access thousands of mutual funds through an open architecture investment platform, allowing them to find the best fit for their needs with the help of financial advisers.  

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“We are excited to combine the strengths of our two organizations, to rapidly expand the availability of fee-based 401(k) plans to financial intermediaries and their business clients,” said Mark Gutrich, ePlan Services co-founder and chief marketing officer, in the announcement.   

ePlan Services will operate as a wholly owned subsidiary of Paychex.  Mark Gutrich and his brother and co-founder, Dan Gutrich, will continue to be a part of the leadership team for ePlan Services, and ePlan Services’ existing employees will be retained. ePlan Services serves nearly 4,000 401(k) plans in all 50 states.

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