Retire2Enjoy : Changing the 401(k) though Retirement Plan Participation Declines; New Retirement Estimator from Social Security

Retirement Plan Participation Declines According to the Employee Benefit Research Institute

Employment-based retirement plan participation decreased slightly for most categories of workers in 2008. But those with the strongest connection to the work force registered the smallest decline according to a report issued by the Employee Benefit Research Institute (EBRI).

The percentage of all workers participating in an employment-based retirement plans decreased from 41.5 percent in 2007 to 40.4 percent in 2008, while the percentage of full-time, full-year wage and salary workers ages 21-64 (those most likely to be offered a retirement plan at work) fell less--from 55.3 percent in 2007 to 54.8 percent in 2008. The overall decrease in participation was also reflected in virtually all categories of workers. Wage and salary workers ages 21-64 had the biggest decrease, at 1.4 percentage points.

Change Underway with the 401(k)

Small-business and other retirement plans are in for some big changes, and company owners should get ready for them. Likely changes include automatic enrollment in 401(k) plans and increased government scrutiny, retirement experts said.

Online Retirement Estimator

Social Security presents a new online Retirement Estimator, available at www.socialsecurity.gov/estimator, offers a new feature. It can now provide immediate and personalized benefit estimates to people who have enrolled in Medicare but have not yet filed for Social Security benefits. Previously, these half-million “Medicare only” beneficiaries would need to contact a local office in order to obtain an estimate of their benefits.

Whole Body Health

Retirement Living TV will premiere the second season of Whole Body Health on Thursday, November 19(th) at 8:00 pm EST. The series focuses on the need to balance  physical, mental, spiritual, environmental, and social elements in order to maintain well-being. Emphasis this season will be on the many therapies used around the world, such as  naturalpathy and therapeutic techniques that employ hot pepper, the arts, water, and magnetic energy.

Suggestions Before Congress

Financial services experts are urging Congress to adopt retirement savings reforms in the next few years and are readying products that could profit from them. Several executives are recommending that lawmakers make changes that would ensure income from savings lasts through retirement.

For example, Robert L. Reynolds, the president and chief executive officer of Putnam Investments, argues that defined contribution plans, specifically the 401(k), need to be improved so that their income stream does not run out too early.

Robert Clark, Professor of Economics and Management at North Carolina State, is in favor of automatic annuitization for 401(k) plans in lieu of lump-sum payments.

New Hampshire’s Healthier Retirement System

For the fiscal year ending June 30, 2009, investment returns for the New Hampshire Retirement System were better than other systems. Currently valued at approximately $5.0 billion, the NHRS trust fund experienced an 18 percent investment loss in Fiscal Year 2009 compared to 20-30 percent losses among other retirement systems. Investment performance has continued to improve since the end of Fiscal Year 2009, when assets were $4.3 billion.

Buddy, Can You Spare a Job?

Buddy, Can You Spare a Job? The New Realities of the Job Market for Aging Baby Boomers, a study sponsored by the MetLife Mature Market Institute, has found that many Americans over age 55 plan to work at least until age 69. But most who look for a job face challenges finding one.

Retire and Feel Eight-Years Younger

The self-reported health of the newly retired improves so much that most feel eight years younger, according to a new European study. There is one exception to this happy trend: a small 2 percent minority who had experienced "ideal" conditions in their working life.

Canadian Boomers and Charity

A Canadian Study sponsored by the Bank of Montreal has found that Canadian boomers have cut their contributions to charity during the current recession. But 82 percent of them plan to increase their giving over the next five years regardless of economic climate.

Utah Moving from Defined Benefits to Defined Contributions

Legislators in Utah are considering doing away with the nearly century-old state-employee pension system altogether for new hires and replacing it with an  individual 401(k). But the push for change was met with a unanimous chorus of opposition from public employee unions that are urging lawmakers to go slow and give the current pension system a chance to recover from its battering by the economic downturn.