Data & Research October 5, 2010

Despite Saving, Boomers Feel Less Prepared for Retirement

Despite proactive savings behaviors, 66% of boomers polled by the Transamerica Center for Retirement Studies said they are less confident in achieving a financially secure retirement than they were last year.
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The “11th Annual Retirement Survey” of American workers found that since the recession began, 58% of baby boomers have maintained or increased the amount of money they’re saving, while 65% have cut their spending. Yet, 71% agreed they could work until age 65 and not have enough saved to meet their retirement needs.  

Forty percent of boomers surveyed plan to work past age 70 or not retire at all. Only 34% have $100,000 or more saved in all household retirement accounts.  

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Nearly six in ten (59%) boomers have a plan for how to reach their retirement goals (though just 8% have it written down).  Forty-eight percent guessed at the amount of money they expect to need to have saved to feel financially secure in retirement, and the median amount was $500,000.
The Markets October 5, 2010

Morningstar Changes Classification Structure for Global Equities

Morningstar has revised its classification structure for global equities based on the market a company serves rather than the type of business it conducts.
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In general, the new classification structure will have fewer Industries and Industry groups and redefined sectors and super sectors, according to a press release.   

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Under the new global equity classification structure, Morningstar first categorizes companies into one of 148 Industries, based on their largest sources of revenue and income. The industries roll up into 69 industry groups based on their market characteristics. Industry groups fold into one of 11 sectors, including Basic Materials, Communication Services, Consumer Cyclical, Consumer Defensive, Energy, Financial Services, Health Care, Industrials, Real Estate, Technology, and Utilities.   

The sectors finally roll up to one of three major economic spheres, or super sectors, which are Cyclical, Defensive, and Sensitive. The Super sectors indicate the degree to which macro-economic cycles affect sector groups.  

Morningstar said it will roll out the new classification structure in phases. All products will adopt the new Industry categories on October 15, 2010.

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