News

Issue Number 02/07/05:

In this issue:

1. Definition of Retirement changing.

2. Retirement Plan Man.

3. Fend for Yourself!

The definition of retirement is changing:

 According to a new national survey of 7,718 employees over 18, 34% of workers say they never plan to retire. The survey was conducted by Harris Interactive for Age Wave and The Concours Group. ''These people are the most engaged in their work, and the most productive,'' says Tamara Erickson, executive vice president of The Concours Group. ''They love work.''
   At the same time, workers plan to be creative with their later work years, with 12% of those who plan to keep working that they plan to work full time, 39% wanting to work part time, and 49% desiring periods of employment, followed by periods of leisure. This ''periodic'' retirement plan favored by the majority shows that employers will have to rethink retirement, Erickson says.
 

Working the plan-"Retirement Plan Man":

"Retirement Plan Man" pops up in a workbook that accompanies Carminucci's book, "Gold-Plated Retirement: Putting the Gold in the Golden Years." The superhero guides the potential retiree through the steps necessary in creating a plan that will leave them with enough assets to afford the retirement lifestyle of their choosing. Carminucci, a Somers resident, holds the financial designations of certified fund specialist (CFS), certified senior adviser (CSA) and registered financial consultant (RFC). He manages around 500 corporate and individual accounts and has aided in the investing of more than $100M as a financial adviser. He is a firm believer in the concept that "if you don't control money, it will control you." In his 15 years of planning retirements for high-net-worth individuals as well as for the employees of corporate clients, Carminucci has observed what he calls a generational paradigm shift. "The plan for retirement has been shifted to the lap of the individual. Most companies don't provide a retirement plan for their employees the way they did thirty years ago."

drifting toward a time when retirees will have to fend for themselves:

The dream of a comfortable retirement is taking a beating these days.

The modern American expectation that years of toil will be followed by years of leisure, with regular checks arriving in the mailbox while the retiree is out putting on a sunny back nine, is becoming more and more elusive. It will still play out that way for the affluent. But for many middle and lower income workers, like the tramp in the picture, a sea change in the way retirement income is generated is putting that dream at risk.

The nation is quietly drifting toward a time when retirees will have to fend for themselves without traditional, reliable monthly pension benefits. That may be consistent with President George W. Bush's notion of an "ownership society." But it may not be the best thing for retirees. It's a reason to view reform efforts with care and caution.

Americans are notoriously poor savers. And the new paradigm - earn enough, save enough, invest wisely enough, get lucky enough and you may have enough to support yourself for 20 years - doesn't promise much in the way of security.

Tough luck

pnwGallery.com © 2006