Data & Research March 16, 2009

Nearly Half of Workers Would Skip SS Deductions

Almost of half of respondents to a new survey would prefer to stop paying into the Social Security system—even if it meant giving up their own benefits.
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The U.S. division of Sun Life Financial has released data from the Sun Life Unretirement Index showing 48% of survey respondents would prefer to stop paying into the Social Security system even if it meant that they would not receive these benefits once eligible.

A Sun Life news release said workers in their 30s are most likely to favor not paying into the Social Security system, with 59% responding they would rather not pay the taxes and not receive benefits.

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The survey also found:

  • 51% of workers age 40 to 49 prefer to not participate in the Social Security program;
  • 44% of workers age 50 to 59 prefer to not participate;
  • 39% of workers 50 and older would rather not participate.

Even a significant amount of respondents who are nearing traditional retirement age would choose to stop paying Social Security taxes. One in three (33%) workers older than the age of 60 said they would stop paying Social Security taxes even if it meant they would not receive any benefits.

According to the release, income level was not a strong factor impacting American workers’ attitudes toward Social Security. In fact, results were largely consistent across income levels: Almost half (47%) of Americans with a household income of less than $25,000 would choose to opt out of the system, and 48% of those making between $25,000 and $50,000 a year would as well. Slightly more than half (52%) of Americans making more than $125,000 a year would choose to stop paying Social Security taxes and not get the benefit.

The research also shows men are more likely than women to say they would rather not pay into Social Security or receive any Social Security payments. Fifty-seven percent (57%) of men age 40 to 49 would opt out of Social Security, while 45% of women in that age group would choose to stay out of the system. Sixty-two percent of men age 30 to 39 would opt out, while just more than half (56%) of women age 30 to 39 would.

“As American workers approach the traditional retirement age, they increasingly begin to see the value of some component of guaranteed income, whether or not they plan to keep working,” said Wes Thompson, president of Sun Life Financial U.S., in the release.

The most recent version of the Sun Life Unretirement Index was conducted by Interviewing Service of America by telephone between December 3 and 14.

More information is available at www.unretirementindex.com.

Products March 16, 2009

Russell Launches Site To Help Advisers

Russell Investments launched a Web site called Helping Advisors to provide financial advisers with tools designed to help keep their clients and businesses on track in the current financial environment.
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Russell said the site—free and open to everyone—provides advice and tools to assist advisers in simply and efficiently diagnosing their clients’ situations. It also outlines discussion points and ideas for advisers to help investors adjust to new financial realities and the decisions confronting them, according to a news release.

The site features the Retirement Analyzer, a tool that helps advisers assess clients’ retirement funding status and recommends specific actions advisers might take to increase the likelihood of reaching clients’ financial objectives.

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The site also houses the Economic Recovery Dashboard, which features visual snapshots of current market conditions relative to their typical long-term ranges. That feature is designed to help advisers set context and perspective for investors when evaluating the current state of the economy, Russell said. The dashboard tracks leading indicators (credit risk, corporate debt, and market volatility) and lagging indicators (mortgage delinquencies, employment growth, consumer spending, and economic expansion), and illustrates the direction they have moved for the past three months: toward, away from, or within typical ranges.

“In recognition of the extreme pressure markets are under and how that has affected the staying power of investors, we thought it would be helpful to offer a tool designed to facilitate investor/adviser discussions,” said Tim Noonan, managing director at Russell Private Client Services, in the release. “We see it as a way to assist advisers who are seeking proactive devices to pull their investors out of the trap of the widespread malaise that has encased them.”

 

More information is available at www.russell.com/helping-advisors/default.asp.

 

 

 

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