InFRE teams up with the SOA and LIMRA for a final look at how the downturn has affected retirees in,
“The Financial Recovery for Retirees Continues: The Impact of the 2008-2011 Crisis.”

The Society of Actuaries' (SOA) Committee on Post Retirement Needs and Risks, LIMRA and the International Foundation of Retirement Education (InFRE) are pleased to make available a research report based on the findings of a June, 2011 survey posed to 461 retirees with $100,000 investable financial assets who also participated in the 2008 and 2009 studies listed below.

American retirees are feeling more financially secure since 2009, but fewer are estimating how long their assets will last into retirement.

The most recent survey found that fewer retirees reported feeling less financially secure now than when they first retired (28 percent in 2011, 49 percent in 2009). The study reveals that retirees’ confidence levels are approaching levels recorded before the 2008 downturn, when only one-fifth of retirees reported feeling less financially secure than when they first retired.

The new study also found that retirees have been paying down their debt, with 46 percent of respondents in the 2011 study having no debt compared to 38 percent in 2009. While this might boost feelings of financial security, the fact that an increasing proportion of retirees are not estimating how long their assets might last in retirement (46 percent in 2011 from 38 percent in 2008) is a concern for financial professionals. In fact, the number of retirees acknowledging their assets and investments need to last at least 20 years has declined 20 percentage points since 2008.

“We’re surprised by the number of retirees who have not considered how long their assets and investments might last given the market volatility of recent years,” said actuary and retirement expert Anna Rappaport, FSA, MAAA, who serves as chairperson of the Society of Actuaries’ Committee on Post-Retirement Needs and Risks.

The study found that individuals who have calculated how long their money might last in retirement are more confident they have saved enough money to live comfortably than those individuals who have not. The research also indicated that 61 percent of retirees have someone they consider to be their personal financial advisor, and that retirees with financial advisors are more likely to engage in financial planning and have higher overall retirement assets.

“This research emphasizes the importance of retirees educating themselves on how to successfully plan for their retirement years, while understanding the value of partnering with a trusted financial advisor for guidance,” observed Betty Meredith, CFA®, CFP®, CRC®, Director of Education and Research, InFRE.

To read the full study, “The Financial Recovery for Retirees Continues,” visit here.

InFRE teams up with the SOA and LIMRA:
Will Retirement Assets Last a Lifetime?

The Society of Actuaries' (SOA) Committee on Post Retirement Needs and Risks, LIMRA and the International Foundation of Retirement Education (InFRE) are pleased to make available a research report based on the findings of a 2008 survey posed to approximately 1,500 retirees with $100,000 investable financial assets.  The survey questions explored how retirees made decisions about investing their assets and purchasing financial products prior to the financial crisis.  Click here to view the Will Retirement Assets Last a Lifetime report and supporting materials. View the What a Difference a Year Makes update of the survey reflecting 2009 opinions.

The February, 2009 report, authored by Sally Bryck of LIMRA, provides valuable information for retirement counselors and the financial services industry.  If you have any questions, please contact InFRE’s Director of Education and Research, Betty Meredith by email (this will open your email application), or call 847-756-7342 ext. 133.

InFRE participates in SOA Committee to identify
common mid-market retirement profiles

April, 2008 - Segmenting the Middle Market: Retirement Risks and Solutions – Phase 1 Report

The Society of Actuaries’ Committee on Post Retirement Needs and Risks is pleased to make available the Phase 1 report of a two-phase effort.  The effort is defining relevant and actionable consumer segments among middle-income / mid-level net worth households (Phase 1) and decision processes that could lead to solutions that address the retirement risks of each segment (Phase 2).  The Phase 1 report, authored by Noel Abkemeier and Brent Hamann of Milliman, may be accessed at the following link: http://www.soa.org/research/pension/research-segmenting-market.aspx

The Phase 2 report is expected to be available in the near future.  If you have any questions, please contact Steve Siegel, SOA research actuary, at ssiegel@soa.org.

InFRE research makes case of new retirement education approach

See the results of the June, 2007 InFRE General Population Retirement Readiness Study which identified a comprehensive profile of retirement readiness among Americans to help retirement counselors and educators more effectively identify and utilize retirement education and delivery approaches when working with the mid-market. The study was conducted on behalf of InFRE by Matthew Greenwald and Associates.  Over 1,000 individuals in the early, mid and late phases of their working careers participated in the online survey. 

The study was the final phase of a multi-year project completed by InFRE for the Office of Personnel Management (OPM) to help federal agencies provide employees with their individual state of readiness using various dimensions that should be considered when planning for retirement.  Agencies will use the retirement readiness profile as a tool to identify the general status of retirement of their employees and to plan specific programs to address issues identified.  The retirement readiness profile will also be used by OPM to conduct periodic surveys of the Federal workforce to track overall trends in retirement readiness for its over 3 million employees. 

If you have any questions, please contact InFRE’s Director of Education and Research, Betty Meredith by email (this will open your email application), or call 847-756-7342 ext. 133

2003 Retirement Planning Software Study: Not All Programs Are Alike

BABY-BOOMERS FACE TOUGHER CHALLENGES DURING RETIREMENT THAN PREVIOUS GENERATIONS. Longer life-spans, earlier retirements, rising health-care costs and fewer traditional employer-sponsored pensions pose greater risks to current and future retirees.

InFRE proudly took part in a study, together with LIMRA International and the Society of Actuaries, that evaluated various retirement planning software programs. The study looked at the risks of retiring in today’s environment and identifies ways that software programs can adapt to the pending post-retirement period.

To see how the software stacked up, download the full report.

The project examined 19 retirement software programs, some designed for consumers and others for professional advisors. The study tested the programs for such factors as ease of use, quality and clarity of results, capabilities and treatment of risks.

Here are some key findings:

• Programs give a wide range of answers about when a retiree will run out of money.
• The software can do more to help people understand and deal with post-retirement risks.
• Programs vary in their ability to handle different personal or tax situations such as home ownership and two- earner couples with two sets of benefits.

While the report does not compare or rate the programs, it does make recommendations for using and improving retirement planning software.

Read the full report here.