Retiring Later

A new survey from Golden Gateway Financial shows that recent retirement investment losses are causing many seniors to consider retiring at a later age than originally planned. The survey asked Americans aged 62-and-older how the economic crisis was affecting their retirement plans. The number of respondents planning to retire after age 70 because of the economic crisis increased substantially from those planning to retire at that age before the crisis.

• Before the economic crisis, 67 percent of respondents planned to retire before age 70
• Now, the number of seniors planning to retire by age 70 dropped to 40 percent
• Before the economic crisis, 30 percent of those surveyed planned to retire after age 70
• Now, almost 50 percent of seniors plan to retire after age 70
• More than 40 percent of seniors polled said the current economy has had some kind of negative affect on their ability to retire
• More than 50 percent of respondents said they are concerned that their overall net worth may no longer be enough to sustain their retirement
• 86 percent of seniors said they had a reasonable understanding of  their net worth, and 50 percent said that net worth had declined by between 10 and 30 percent

Leaving Duke Early

Duke University offered a retirement incentive to 825 University staff earlier this year, the decision to accept was easy for Kenneth Sanders. Nearly 300 accepted the offer.

The program was restricted to staff in selected positions who are age 50 or older with at least 10 years of service at Duke and who are active participants in the Employee's Retirement Plan. The retirement incentive plan is part of Duke's ongoing efforts to reduce labor costs to help shrink the $125 million budget shortfall caused by the decline in value of Duke's endowment.

Early-Outs in Chandler

The Chandler (Arizona) city government has approved early retirement for sixty-one city employees. A total of 81 had applied for the program, but the City rejected 14 because those employees occupied critical positions, such as police and fire.

Assisted Living At Home

Assisted Living At Home just launched a country-wide database of retirement homes with extensive ratings and reviews. It is available at http://www.assistedlivingathome.com or by calling 805-482-0728

Positively Ill Prepared

Many Americans are neither financially nor emotionally ready for retirement, according to a new survey by Charles Schwab.

Almost four in 10 Americans (39%) are not currently saving for retirement and, despite market losses, six in 10 Americans (62%) have not adjusted their thinking about what age they will retire.

Survey respondents estimate they will need just over $1.2 million to comfortably retire, even though they have put away an average of just $194,000. Yet, 41% of Americans feel positive about their retirement preparedness while only 22% feel indifferent.

The Popularity of Reverse Mortgages

Increased Life Expectancy

Thanks to improved life expectancy, a 65-year-old today has roughly the same chance of dying within a year that a 55-year-old had in 1935, according to Forbes magazine. In 1900 men enjoyed an average of two years of retirement

Retirement Savings, Race, and Ethnicity

Significant differences can be found across race and ethnicity in the way U.S. employees save and invest in their 401(k) plans, according to 401(k) Plans in Living Color: A Study of 401(k) Savings Disparities Across Racial and Ethnic Groups—The Ariel/Hewitt Study. This pioneering report—the largest, most comprehensive examination of 401(k) saving and investing behaviors of African-American, Hispanic, Asian and white employees—found that regardless of age or income, African-American and Hispanic workers have lower participation rates and contribute less to their 401(k) plans than their white and Asian counterparts. As a result, their 401(k) account balances are negatively impacted and chances for a comfortable retirement significantly compromised.

The Ariel/Hewitt Study analyzed 401(k) information for nearly 3 million employees across 57 large, primarily FORTUNE 500 companies in the U.S. It was conducted by the Ariel Education Initiative, the nonprofit affiliate of Ariel Investments, and Hewitt  Associates, a global human resources consulting and outsourcing company. The Chicago Urban League, the Joint Center for Political and Economic Studies, the National Council of La Raza, the National Urban League, and The Raben Group also participated. The study was funded with a grant from The Rockefeller Foundation.

Early Retirements at Iowa State

More than 150 Iowa State University employees are planning to take early retirement.

Augusta Incentives

Early retirement for Augusta (Georgia) city workers is being discussed. As currently presented, the incentive plan would apply to workers who are at least 60 years old with a minimum of 20 years' service. Mr. Powell said 109 employees would be eligible for early retirement under those provisions. Director of Human Resources Rod Powell said an early retirement incentive program could reduce the costs of running the city's government while making it more attractive for employees who are close to retirement.

Dillon, Montana, Retirement Fund

Dillon (Montana) voters have overwhelmingly approved a $1.6 million bond issue to transfer its troubled police retirement fund into a statewide system. The bond measure will help solves years of struggling to keep the fund solvent after it had several officers retire early. Fund managers have said eventually it won't have enough money to cover officers' retirements.