Data & Research December 16, 2010

High School Grads Worse Off in Retirement Prep

Sixty percent of workers who only have a high school diploma report being offered a 401(k) or similar plan by their employer, compared to 78% of workers with a college degree and 83% with post graduate education.
Reported by

A Transamerica news release about its new study of the effects of educational level on one’s retirement confidence and readiness said of workers with access to a plan, those with only a high school education have a lower participation rate (63%) than those with some form of higher education (84% with a college degree, and 87% with at least some post graduate education). Those with only a high school education also contribute a smaller percentage of their pay (5% median) compared to those with a college degree (8% median).

According to Transamerica, workers with lower levels of educational attainment are also significantly less confident in their ability to fully retire with a comfortable lifestyle. Just 40% of high school graduates without any college education are confident in their ability to retire, compared to 53% of college graduates and 64% who have pursued a post graduate education.

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While most workers agree that they could work until age 65 and not save enough to meet their retirement needs, three-quarters of high school graduates with no college education agree with this sentiment compared to just over 60% of college graduates. Additionally, nearly half of high school graduates without any college education (48%) plan to work past age 70 or not retire at all.

When American workers reach their retirement date, more than half with a college degree expect their 401(k), 403(b), and IRAs to be their primary source of income in retirement – compared to over one-third of workers with only a high school diploma who expect to rely on Social Security, the news release said.

Nearly one-third of those with only a high school diploma cite that they do not rely on any source of information for retirement planning and investing—the most common response among that demographic. By comparison, those with a college degree more frequently rely on a wider range of available resources like financial Web sites (42%), financial planners or brokers (33%), and newspapers and magazines (27%).

The 11th Annual Transamerica Retirement Survey was conducted among nearly 3,600 American workers. The report is at http://www.transamericacenter.org/resources/TCRS11thEducationalMattersFinal.pdf. 

Deals & People December 16, 2010

Hocker Gets Job with First Allied

First Allied Securities, an independent broker/dealer, hired Guy J. Hocker as Senior Managing Director of its pension services division.  
Reported by

The primary focus of Hocker’s team is to provide qualified retirement plans to the clients of First Allied’s nearly 1,000 independent financial advisers. Hocker reports to Robert S. Holcomb, President of First Allied Wealth Management.

According to a news release, Hocker has more than a decade of experience as an ERISA lawyer. Immediately prior to joining First Allied, he was President of Benefit Planning, Inc., the Los Angeles office of National Investment Managers.

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Hocker’s ERISA legal experience includes substantial Internal Revenue Service/Department of Labor submissions and negotiations; complex plan designs (defined benefits/defined contribution combinations); niche designs (prevailing wage and non-profit); and comprehensive experience with qualified plan compliance practice management, the announcement said.

Hocker earned his law degree from William Howard Taft University and his bachelor’s degree in business administration from the Walter Haas School of Business at the University of California, Berkeley.

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