Women in Retirement

AXA Equitable Life Insurance Company has released results of a recent study, Retirement in America: A Survey of Concerns and Expectations. The study shows twice as many women than men say their top financial worry is not being able to save enough for retirement (22% versus 11% respectively.

Meanwhile, the recent financial crisis has had a more profound effect on women. Fewer women than men reported recovering the majority of their retirement savings investments (28% versus 37% respectively). Such statistics put women in retirement at a disadvantage.

Faith Based Mutual Funds

Because defined contribution retirement plans are becoming increasingly popular with nonprofit organizations such as churches and charities, the Hartford Financial Services Group is seeking to appeal to employees of nonprofit organizations by introducing investment options from three faith-based investment fund families.

They are the Timothy Plan(®), the Luther King Capital Management (LKCM) Aquinas Funds, and the Ave Maria Mutual Funds. They will be included in the Hartford’s lineup of 403(b), 401(a), 457 and 401(k) defined contribution retirement plans.

Faith based mutual funds, a form of socially responsible investing, are popular with clergy, employees of religious organizations such as schools and hospitals, and others whose values coincide with the investment philosophy of the fund managers.

Canada’s Three Legged Stool

There are three pillars to retirement income in Canada. The parts of this three legged stool are:

1. Old Age Security and the Guaranteed Income Supplement, which provide an income guarantee to 4.5 million Canadians.
2. The Canada Pension Plan/Quebec Pension Plan, which while actuarially sound for the next 75 years, does not provide enough income replacement for many Canadians.
3. Through the private sector, the Registered Retirement Savings Plan and Tax-Free Savings Account.

Ontario Retirement Home Regulations

Ontario's proposed legislation to regulate retirement homes for the first time could lead to expensive, for-profit facilities that encroach on services provided by publicly funded nursing homes, but with less operational oversight, critics warn.

The Liberal government of Ontario, Canada, has been promising for years to create regulations for the approximately 700 retirement homes in the province. Now, it is seeking to deliver on its promises with a bill that is now in committee stage.

It calls for new regulations to enforce care and safety standards, mandate emergency plans, infection-control programs, and police background checks for staff.

Groups including the Registered Nurses' Association of Ontario (RNAO), the Ontario Health Coalition and the Canadian Union of Public Employees (CUPE) have raised concerns about several aspects of the bill. Their biggest issue appears to be the self-regulating model the province has chosen.

Small Business Owners Out in the Cold

The Small Business Administration reports that fewer than 2% of business owners have a Keogh self-employed profit-sharing plan, only 18% participate in a 401(k) plan, while more than nine million self-employed individuals do not have any retirement plan coverage.

Boulder Valley Taskforce

The Boulder Valley School District of Colorado is convening a task force to look at creating new retirement incentives for longtime employees with the goal of promoting turnover and saving money on salaries. The group will also be reviewing the district's existing program that lets retiring employees receive retirement benefits during their last year on the job.

The task for will report its findings in the fall.

Cracking the Code

ING's U.S. Retirement Services business is launching a new value-added tool entitled "Cracking the Code." It is a comprehensive set of practice management strategies to help retirement professionals unlock the business opportunities. "Cracking the Code" includes actionable sales ideas and guidance that can be leveraged for relationship-building and business growth.  

Tips for Retirement from Charles Schwab

Are you in your Twenties? Then:

• Set your 401(k) contribution to at least 10 percent of your gross income beginning with your first job
• Resist the temptation to cut back on saving for retirement, regardless of what's going on elsewhere in your life
• Put any bonuses or raises you get into your retirement savings Thirties Make saving for retirement a priority, even as you also save for other goals, such as a house or your children's college education. There are no loans or financial aid options to help pay for retirement
• Track your spending, find ways to cut back on expenses and save more for retirement
• Put any bonuses or raises you get into your retirement savings

In your Forties? Then:

• Contribute the maximum-allowed amount to your 401(k) or other employer retirement plan
• After you contribute the maximum to your 401(k), consider the benefits of contributing to a traditional or Roth IRA
• Put any bonuses or raises you get into your retirement savings

In your Fifties or Sixties? Then:

• Take advantage of "catch-up" contributions to your retirement accounts
• Consider retiring later or working part-time in retirement to help increase your income
• Consider decreasing your exposure to stocks to help reduce the impact of market volatility on your portfolio

Louisiana Sinks

A Louisiana House panel has narrowly approved legislation that would lower some retirement benefits of state employees in hopes the changes would strengthen the financial health of the Louisiana's four retirement systems. The legislation, if passed would alter the benefit plans for people who join the retirement systems after Jan. 1.

It would change how the systems calculate the amount of the retirement payments and how old a retiree must be to collect full benefits.

Retirement Research Center at the University of Waterloo

The Royal Bank of Canada and the University of Waterloo have announced the creation of Retirement Research Centre Your Future By Design at the University of Waterloo.