Data & Research May 31, 2012

LGBT Investors Say They Need Tailored Advice for Retirement Planning

LGBT (lesbian, gay, bisexual and transgender) non-retirees reported confidence in retirement savings as well as a need for specialized advice, a survey found.   
Reported by

Mostinvestors face complex challenges when it comes to retirement, including how to save enough to feel comfortable, where to invest retirement savings, and understanding and creating retirement income options. LGBT pre-retirees face these challenges as well as some that are unique, stemming from a lack of federal marriage and inheritance rights, according to a Wells Fargo Retirement survey.

For assistance, some LGBT investors turn to advisers who specialize in planning for people in domestic partnerships. The Accredited Domestic Partnership Advisor (ADPA) program was created with the College for Financial Planning to educate advisers about the financial considerations of people who enter domestic partnerships.

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Approximately one in 10 LGBT respondents is aware of the ADPA designation, and most gay men (60%) and lesbians (72%) say these credentials are important to them when working with an adviser.

LGBT non-retirees reported a higher level of confidence in retirement savings compared with the general population, the survey also found.

(Cont’d…)

A majority of LGBT non-retirees (61%) felt confident that they will have enough saved to live the lifestyle they want throughout retirement, compared with 53% cited by the general population. However, more than a third (36%) of LGBT non-retirees expect to work in retirement to afford their lifestyle—only slightly lower than the general population expressing this view (41%).

The median amount LGBT non-retirees have saved for retirement is only 17% of what they believe they actually need. Survey respondents believe they will need to save at least $900,000 in order to retire, and have saved on average about $150,000. And despite this need to save more for retirement, three out of five (62%) of non-retirees have not increased their retirement savings allocation in the past year.

A majority of LGBT respondents reported they would find value in information and advice on investing and preparing for retirement. Additionally, only about a quarter of the LGBT respondents currently had a detailed written plan for their finances in retirement.

Richard Day Research, a market research firm, conducted the survey online on behalf of Wells Fargo Retirement between December 2 and December 18. Adults 25 to 75 who identified themselves as lesbian, gay, bisexual or transgender participated in the study.

 

Compliance May 31, 2012

Chesapeake Energy Facing ERISA Investigation

A Los Angeles law firm has begun an investigation into the Chesapeake Energy Corporation Savings and Incentive Stock Bonus Plan.
Reported by

Liner Grode Stein Yankelevitz Sunshine Regenstreif & Taylor LLP is looking into potential violations of the Employee Retirement Income Security Act (ERISA) relating to the plan’s investments. 

The law firm is concerned the plan’s fiduciaries may have breached their fiduciary duties to plan participants by offering Chesapeake stock or other inappropriate funds as plan investment options. A breach also may have occurred if the fiduciaries withheld or concealed information from plan participants about the company’s business and financial results, encouraging them and their beneficiaries to continue to make substantial investments in company stock through the plan.   

Never miss a story — sign up for PLANADVISER newsletters to keep up on the latest retirement plan adviser news.

Shares in the Oklahoma City company have dropped 48% in the past year. The effect of falling gas prices has been compounded by Chief Executive Officer Aubrey McClendon’s use of personal stakes in the company’s wells to obtain loans. 

 

«