Data & Research July 22, 2010

Value of Retirement Benefits Sees Double Digit Decline over Decade

U.S. workers saw the value of their employer-sponsored retirement benefits - as measured by percentage of pay - decline by double-digit levels over a 10-year period ending in 2008, according to an analysis by Towers Watson.

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The analysis found that, from 1998 to 2008, the value of total retirement benefits provided to new, salaried employees in the eight industries studied declined by 19%, from 7.88% to 6.36% of pay. Total retirement benefits include DB and DC plans, retiree medical and retiree life insurance plans, according to a press release.   

The overall decline in total retirement benefits was mostly due to a 53% drop in the value of defined benefits, from 4.19% of pay in 1998 to 1.99% in 2008. DC benefits increased by 38%, from 2.89% of pay in 1998 to 3.99% in 2008.  

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According to the analysis, the largest decline in total retirement benefits from 1998 to 2008 occurred in the retail and wholesale industry – a drop of 33%, from 5.72% of pay to 3.82%. Among the eight industries analyzed, only service industry workers saw the value of their retirement benefits increase — from 4.16% of pay to 4.30% of pay, an increase of 3%.  

The largest drop in the value of DB benefits from 1998 to 2008 occurred in the retail industry (81%), which, along with the service industries, also provided the lowest level of defined benefits at the end of the period. The value of DC benefits increased for all of the industries analyzed, led by the pharmaceuticals and health care industries, which experienced increases of 97% and 87%, respectively.  

The Towers Watson Employer Commitment to Retirement analysis is based on retirement benefit data from an average of 642 companies in eight major industry categories.  

More information is at http://www.towerswatson.com. 

 

Data & Research July 22, 2010

What Advisers Do Online

Financial advisers spend over 23 hours per week online at industry, social, and asset manager sites, according to a recent study by kasina.
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Eighty-five percent of advisers admitted to visiting asset manager sites at least occasionally, and 71% even reported that the quality of asset manager sites they visit affects their product designs. The report found that wholesaler discussion of firm Web sites impacts adviser usage of those sites, and more High AUM advisers seek news and commentary on adviser sites.  

The most commonly accessed sites are advisers’ intranets, which are visited by 94% of advisers, and social media sites such as LinkedIn, Facebook, and Twitter are on the rise as well. Most advisers admitted to using mobile devices to access work content, and while most feel that they get too much e-mail from asset managers, more than two-thirds reported sharing content with clients.  

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For more information on the full report, “What Advisers Do Online 2010,” visit www.kasina.com  

 

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