Benefits January 24, 2012

Retirement Planning Differs Between Genders

January 24, 2011 (PLANSPONSOR.com) - Men and women are preparing for retirement in very different ways, according to research released by Ameriprise Financial.
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Findings from the New Retirement Mindscape City Pulse index indicate that while men outpace women in planning for the financial aspects of retirement (77% vs. 72%), women are more likely to say they’ve thought about what they’d like to do during retirement. Overall, 22% of respondents report confidence in reaching their retirement goals, but men are more likely than women to report this sentiment (25% vs. 19%).  

More than half of men (54%) report setting aside money in their own investments (such as stocks and IRA’s) compared to 46% of women who say they’ve done the same. Men are also more likely than women to report that they’ve determined the amount of income they’ll need in retirement (31% vs. 20%).   

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Ameriprise said this additional financial preparation may be one reason men are more likely than women to say they feel on track for retirement (41% vs. 34%) and express confidence in their overall financial futures (22% vs. 16%).  

Women are more likely to report that family and health take a prominent role in their planning. They are more likely than men to say they plan to spend more time with family during retirement (41% vs. 34%) and that proximity to family is a very important factor in determining where they will retire (40% vs. 27%). They are also more likely than men to place importance on their proximity to friends and other retirees (21% vs. 13%).  

More than half (54%) of women are making plans to ensure they stay healthy during retirement, compared to 48% of men, and women are more likely to rate access to healthcare options and facilities as a very important factor to consider when deciding where to retire (38% vs. 32%). Women are also more likely to say they’ve spent time determining how they will rest and relax in retirement (25% vs. 19%).  

While men and women are preparing differently, they both may be dramatically underestimating how long they’ll need to live on their retirement savings. Those surveyed estimate that they’ll spend approximately 17 years in retirement while most financial professionals recommend accumulating enough savings for a 30-year retirement.  

“It’s especially important that women begin saving early and plan for a longer retirement because they have longer average life spans and spend more time out of the workforce,” said Suzanna de Baca, vice president of wealth strategies at Ameriprise Financial.   

The New Retirement Mindscape 2011 City Pulse index was created by Ameriprise Financial utilizing survey responses from 11,611 U.S. adults ages 40-75. The survey was commissioned by Ameriprise Financial, Inc. and conducted online by Harris Interactive from August 4-12, 2011.
Benefits January 24, 2012

United Insurance to Pay $37K for Failing to Hire Recovering Addict

January 24, 2012 (PLANSPONSOR.com) – The United Insurance Company of America will pay $37,000 to resolve a disability discrimination lawsuit.

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The lawsuit filed by the U.S. Equal Employment Opportunity Commission (EEOC) concerns Craig Burns, a recovering drug addict, who was enrolled in a methadone treatment program since 2004. In January 2010, United Insurance offered Burns a position as an insurance agent in its Raleigh office, conditioned upon Burns’ passing a drug test. After Burns’ drug test showed the presence of methadone in his system, Burns submitted a letter to United Insurance from his treatment provider explaining that he was participating in supervised methadone treatment program and taking legally prescribed medication as part of the treatment. Upon receiving this information, United Insurance notified Burns that he was not eligible for hire and withdrew its offer of employment.

Such alleged conduct violates the Americans with Disabilities Act (ADA), which protects employees and applicants from discrimination based on their disabilities. The EEOC filed suit in August 2011 in U.S. District Court for the Eastern District of North Carolina, after first attempting to reach a pre-litigation settlement through its conciliation process.

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In addition to monetary damages, the two-year consent decree resolving the suit requires United Insurance to conduct training on, among other things, an employer’s obligation to conduct an individualized assessment in determining whether an employee or applicant is disabled under the ADA; appropriate methods of determining whether an employee or applicant poses a direct threat under the ADA; and the obligation to engage in an interactive process under the ADA when an employee or applicant requests a reasonable accommodation. United Insurance will also post a copy of its anti-discrimination policy at its headquarters in St. Louis.

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