Data & Research December 1, 2010

73 Is the New 65

Actuarial and employee benefits consulting firm Nyhart has found 81% of employees 18 or older will not be able to afford to retire by the age of 65.
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According to results of the firm’s “Fall 2010 401(k) Retirement Readiness Study,” the average participant, relying on their 401(k) as a primary retirement vehicle, will not be able to retire until the age of 73.   

A press release said employees over age 55 will need to contribute more than 45% of pay to their 401(k) plans through the remainder of their career to retire by age 65. Most employees ages 60-64 will likely need to work until the age of 75 to be able to afford to retire at their current levels of contribution to their 401(k).  

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The study also found seven in 10 employees ages 24 and under are not expected to retire by age 65.   

The six-month study reviewed nearly 10,000 retirement accounts from employees at 110 public and private companies.
Products December 1, 2010

Lincoln and Humana Form Distribution Partnership

Lincoln Financial Group and Humana Inc. have formed a distribution partnership enabling 2,000 Humana agents to offer Lincoln's products.
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Lincoln’s fixed- indexed annuities and Lincoln MoneyGuard long-term care solution will be made available to current Humana members and non-members.Under terms of the agreement, effective immediately, Humana will expand the suite of products offered by the company’s MarketPOINT agents to include supplemental retirement solutions: Lincoln New Directions and Lincoln MoneyGuard Reserve. According to a press release, these products are designed to protect income and ensure income distribution during retirement years, as well as mitigate the potential financial impact of illness requiring long-term care.  

“We are pleased to work with Lincoln Financial Group in this alliance to help people plan for their retirement,” said Patrick O’Toole, Vice President of Humana’s MarketPOINT organization, in the announcement. “Our partnership with Lincoln enables us to expand what we currently offer Humana members and non-members.”

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