Home     Log in    XML, RSS Subscribe Feed (RSS)     XML, RSS Comments Feed

Posts Tagged ‘Retirement’

Survey Says Retirement Is A Dream For Some

March 4th, 2010 by Matthew C. Keegan | 1 Comment | Filed in Career Planning

Putting off retirement for valid reasons

Some employees long for the day when the shackles of work have finally been removed from them. For most people that event comes by the time they reach age 65, the traditional retirement age for Americans.

Distant Dreams

Most workers approaching retirement age are staying put citing finances and other reasons for extending their careers.

But dreams about retiring are just that for many who are approaching retirement as a recent survey by the employment site, CareerBuilder, revealed that more than 70 percent of people are postponing it. Moreover, as a clear sign pointing to the times in which we live, their reasons usually are just about the same: financial.

Harris Interactive conducted the survey on behalf of CareerBuilder in November 2009 interviewing hiring managers and people nearing retirement to arrive at their findings.

72 percent of employees say that they are putting off retirement because they can’t afford to quit work yet. With the financial market meltdown of September 2008 having a major impact, many would be retirees know that their depleted retirement accounts and other savings just aren’t enough to sustain them over the final chapters of their lives.

Other Reasons

Finances are an important factor in the retirement plans on those surveyed, but CareerBuilder identified some other reasons why workers plan on staying on the job including:

  • They either enjoy their job or enjoy where they work and don’t want to leave it (71 percent)
  • Plan to stay because they need the health insurance and additional benefits provided (50 percent)
  • Fear that their retirement may just be boring (24 percent)
  • Enjoy feeling needed (15 percent)

“The economy continues to cast doubt in the minds of mature workers regarding executing on their future retirement plans. As a result, they are requesting to stay with employers a bit longer,” said Jason Ferrara, senior career adviser at CareerBuilder. “Twenty-seven percent of hiring managers say they were approached about postponing retirements last year and were open to retaining mature workers. The key is to let your employer know sooner than later that you would like to put off your plans to leave.”

Career Planning

In addition to the survey findings, CareerBuilder’s site for mature workers—PrimeCB.com—offers tips for mature workers including encouraging employees to talk with their Human Resources department to map out a strategy for their remaining time on the job.

What is more, you may want to remain flexible by considering taking another job in the company if you already announced your retirement and have reversed course. Work on becoming a top networker if you are considering transitioning to a new job outside of the company and, lastly, mentor internally and externally to demonstrate your human capital and experience.


Tags: , , , , , , , ,

Will You Still Be Able To Retire On Schedule?

February 9th, 2010 by Matthew C. Keegan | 1 Comment | Filed in Retirement

Over the past few years, millions of Americans have come to the realization that their retirement plans may have to change. With pensions and retirement accounts decimated, housing values falling, and job loss on the increase, a long planned retirement date may have to be pushed back.

Retirement Delayed

Will you be relaxing or working during your retirement?

In the September 22, 2008 issue of “The Wall Street Journal,” Helga Cuthbert, a certified financial planner noted, “We’ll see more and more people postpone their retirement dates. Their expectations about the future and the kinds of returns they would get were simply unrealistic.” With nest eggs reduced and an economic recovery slowly taking place, Cuthbert’s assessment appears to be holding true nearly one and half years later.

But not every agrees with that point of view. Bridget Burgess, CFP, president of Symetra Investment Services and board chair of the Puget Sound Financial Planning Association in the state of Washington said, “While there are signs of economic recovery in the region, sticking to a plan, managing personal expenses and saving for retirement should be an ongoing priority, as market conditions can change quickly.”

Five Steps

Burgess added that there five steps every investor can take to ensure that their retirement plans stay on track, even when faced with financial challenges:

1. Create a plan. Begin by calculating what income you will need in retirement. Experts say that many retirees require at least 80 percent of their pre-retirement income to live comfortably. Estimate basic living costs and other expenses that may come into play, such as traveling, a new hobby, increased medical bills and, of course, inflation. Also estimate potential income from rental properties, other investments, inheritances, pensions, etc., and incorporate these estimates into your financial plan.

2. Manage and reduce your expenses now, before retirement. To help offset future costs, manage expenses before retiring. One of the best ways is to cut down credit-card debt. The average household’s outstanding credit-card debt was $10,679 at the end of 2008.2 When regular paychecks come to an end, large credit card bills can be a real burden.

3. Diversify your investment portfolio. After you decide how much you need in retirement and you’ve reduced expenses, develop a financial goal and begin investing now. As we’ve seen in the recent economic downturn, investing in securities incurs market risk. The best way to help cushion a portfolio against market volatility is to diversify – to divide your money among different types of investments, also known as asset allocation. Allocating assets among various investments and across investment styles is important because each investment responds differently to economic events and other market conditions. Diversification does not, however, assure a profit or prevent a loss.

4. Continually evaluate your investments. Changes in family, health and job benefits can affect how much income you will need for retirement. Make the most of the financial plan by reviewing investments regularly. Ensure they are still appropriate for your goals, timeline and risk tolerance. These life events also trigger the need for an insurance review to make sure your life insurance coverage is in line with changing needs.

5. Consider creating a guaranteed income stream during retirement. Creating a stream of guaranteed income, such as an income annuity, can fulfill income needs during retirement, especially if you don’t have a pension. People are living longer, and the prospect of outliving your lifetime supply of money is very real. Using a portion of your retirement portfolio for guaranteed income will help ensure that your money lasts as long as you do. This guaranteed income is based on the claims-paying ability of the underlying insurance company sponsoring the annuity.

Working Retirement

But even as people plan their retirement date, many are redefining what retirement means. In an October 6, 2009 article published to “Bankrate.com,” 75 percent of Americans surveyed said that they expect to work past their retirement date. 39 percent said that they plan to work because they enjoy work while almost one-third plan to work because they expect that they will need the money.

Photo Credit: Walter Groesel


Tags: , , , , , , ,