America Saves Week

The North American Securities Administrators Association (NASAA) has issued the following news release:

“In recognition of America Saves Week, the North American Securities Administrators Association (NASAA) is launching "Planning Your Retirement With Confidence," a new investor education program designed to bring retirement planning assistance to the workplace.

“The "Planning Your Retirement With Confidence" program helps prepare pre-retirees for the financial challenges they will face in retirement through workplace seminars led by investor education experts from state and provincial securities regulatory agencies. The seminars, developed by NASAA's Informed Investor Outreach Project Group, address the specific retirement planning needs of individuals at every stage of their working lives - early career, mid-career, near retirement and retirement.

“Employers interested in hosting a "Planning Your Retirement With Confidence" seminar at their workplace can contact their local state or provincial securities regulator. Contact information for all state and provincial securities regulators is available at here.

NASAA is a proud partner of the Consumer Federation of America's America Saves Week, which aims to promote personal savings and improve financial education. For more information on America Saves Week, visit www.americasavesweek.org.

State securities regulators mark America Saves Week by reminding investors to "investigate before they invest" their hard-earned savings. The "Planning Your Retirement With Confidence" program highlights the need for investors to ask their local state securities regulator for detailed information about their broker, adviser or investment product before they hand over any retirement funds.”

Nursing Home Regulation in Ontario

A new law regulating retirement homes in Ontario, Canada, will be introduced within months, an Ontario cabinet minister said Thursday. Gerry Phillips, the minister responsible for seniors, said the provincial Liberal government has committed to regulating retirement homes by this spring.

The Citizen, an Ontario newspaper, has detailed the case of a 92-year-old woman who died after being transferred from the Queensway Carleton Hospital to an area retirement home as part of a pilot project. The woman was one of 250 such patients moved in an effort to free up rooms in the hospital for surgeries and emergency cases. Critics have questioned the wisdom of such transfers.

The transfers had been prompted in part by shortages in the number of nursing-home beds -- which, unlike retirement homes, are regulated and offer a strong medical component -- the province has available.

There are about 75,000 nursing home beds in Ontario. But the provincial government does not know how many retirement home beds exist.

Canadian Life Expectancy

According to Statistics Canada, the average life expectancy of Canadians has steadily increased since 1979. The current life expectancy at birth listed at 78 years for men and 83 years for women. By age 65, men's life expectancy increases to 83 years while women's increases to 86 years.

A Roth IRA for Teens

Saving for a teenager's retirement might sound far-fetched, but the Washington Post recently ran an article highlighting the importance of setting up a Roth individual retirement account (IRA). That move would be smart and will be a rewarding transaction at tax time.

A child’s Roth IRA can be opened only if the child has income from a job, and allowances don't count. Contributions can't exceed what the child made in any given tax year, up to $5,000.

If you are self-employed, you can employ your children, pay them salary, and open a Roth on their behalf. Just make sure they do real work for a reasonable wage, and also file W-2 forms reporting their earnings to the Social Security Administration.

Resisting Government Regulation

Financial advisers and service providers working with retirement plans are trying to avert the possibility of coming under greater regulation by an existing or new government agency.

A reform bill passed by the House in December 2009 includes language by which unregulated retirement plan providers would fall under the jurisdiction of a new consumer financial protection agency (CFPA).

Then, the Senate passed a version of the bill that would give the Federal Government unprecedented authority over an array of financial services entities. Retirement plan providers would fall under new Labor Department or Treasury Department regulations whether or not the CFPA came to fruition.

As a result of this concern, the American Society of Pension Professionals and Actuaries (ASPPA) is lobbying senators to exclude service providers and advisers serving the retirement plan market. ASPPA argues that the upcoming Labor Department guidance on 401(k) plan fee disclosure directly affects record keepers.

A Personal Choice

Over half of Canadians see no appropriate age to retire for they believe retirement age is a personal choice. These are the findings uncovered by a Royal Bank of Canada poll.  Nearly one-in-three Canadians who are still working say they will never retire and one-quarter think the term 'old' depends on how you feel.

Retirement Can Be a Breeze

The Chicago Daily Herald offers some tips for baby boomer retirement planning.

• Assess your financial plan and budget
• Begin to assess your basic retirement income sources such as a 401(k) plan, IRA, and life insurance plans.
• How much will you need to retire? Determine this by creating a budget that will enable you to pay your monthly expenses such as food, heat, rent and transportation. Consider expenses that may increase such as health insurance and prescription medicines. At the same time, consider those that may decrease, such as work-related and educational spending.
• Health care coverage is necessary in supplementing
• your financial foundation and these costs can add up fast. Its important to have an adequate plan both before and after retirement. After age 65 you are eligible for Medicare coverage. But what if you want to retire before then? Your employer may offer a plan for retiring employees, or you may have to look into private coverage.
• Take into account variable expenses such as tax liabilities on your home, illness or the care of elderly parents. Other, often underestimated, variables include gifts, clothing, recreational expenses, and increases in costs of living. For valuable retirement planning resources and projected trends in costs of living visit www.usa.gov.
• Begin to explore other retirement income options
• Determine the amount of guaranteed retirement income you already have. Examples of these are cash savings, corporate pension plans, home equity, or annuity-type investments.
• Are you married? How will that affect your retirement budget?
• Pay attention to how your retirement funds are earning money. Are they structured for maximum returns? Its crucial that you continually assess these funds.
• Decide when to begin Social Security benefits. According to AARP, for each year you put off collecting your benefits between ages 62 and 70, you increase your payments by 8 percent.
• Calculate your potential monthly retirement budget based on your estimated income weighed against your expenses. At minimum, you need enough retirement income to cover basic living expenses for your lifetime.
• If your initial assessment requires additional income, consider part-time work during retirement, or perhaps selling your larger home for a more carefree condo.
• Consider life insurance
• If you dont have a life insurance policy, get one. Life insurance helps to leave a legacy for generations and it will protect your loved ones and help provide them with financial security once youre gone.
• Consult an expert to find the right life insurance for you. For example, BoomerLife by SBLI USA lets you apply for up to $25,000 of whole life insurance with no hassle. Acceptance is guaranteed for anyone ages 50 to 75. The policy builds cash value that grows each year tax-deferred. Go to sbliusa.com to find out more.

A caption reads: “With proper planning, retirement can be a breeze.”

Canada’s Rare Comprehensive Retirement Plan

A National Bank of Canada survey has found that only 17 percent of Canadians have a comprehensive retirement plan.

An Audit of the TVA

The Tennessee Valley Authority (TVA) failed to put enough money in its employee retirement fund while raising retiree benefits and incentives during most of the past two decades, a new audit concludes. An independent actuary hired by the Inspector General’s office has questioned TVA’s decision not to contribute to the fund when it was flush with cash and then failing to make up the shortfall when the plan was underfunded.

TVA’s inspector general said the federal utility cut its share of retirement contributions in half during the 1990s and later quit making any contributions for six years, despite rising benefit expenses for TVA and increased retirement contributions by most other utilities.

When the market slump cut the value of TVA’s investments in 2008 and 2009, the utility’s once-rich retirement plan shrunk to $3 billion below what actuaries said it needed to meet future obligations. The retirement program now has about a $6.6 billion program, or 83 percent of the desired level.

TVA moved to shore up the fund last summer with a $1 billion contribution and $300 million in benefit cuts. TVA directors last year also accepted a retirement system board plan to eliminate any inflationary increases in benefits this year and in 2012 and to limit any cost-of-living increases in 2011 and 2013.

Transitional Retirement at Indiana State

Indiana State University trustees have approved a transitional retirement incentive plan designed to help the university meet changing staffing needs as it begins implementation of its strategic plan.

The transitional retirement incentive plan covers employees 55 or older with at least nine years of continuous benefits-eligible service. The plan provides lump sum payments of 125 percent of annual salaries (minus applicable taxes) for eligible employees who retire by June 30, 2010; 115 percent for those who retire by Dec. 31, 2010; and 100 percent for those who retire by June 30, 2011.