Would-Be Retirees Plan to Work Longer

Delaying retirement is one of several life adjustments pre-retirees are making to weather the current economic climate.

CPA financial planners surveyed by the American Institute of Certified Public Accountants reported that nearly 35% of their clients who are approaching retirement age are postponing leaving the workforce because of recent economic conditions—a 3% increase from the 32% cited last year. According to a press release on the survey, a majority of those who are postponing retirement (67%) plan to delay retirement no more than five years.

Only 9.6% are postponing retirement for six years or more, the survey found.

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Other adjustments in spending CPAs’ clients are making include:

  • postponing vacations (60%)
  • postponing car purchases and/or the buying or selling of a home (52%)
  • cancelled home renovations (42%).


Only 11% of CPAs have clients who have no plans to change their current spending, the press release said.

The survey was conducted in December via a questionnaire e-mailed to members of the AICPA Financial Planning Membership Section.

Blackberry Maker Settles Options Backdating Case

Blackberry maker Research in Motion (RIM) has worked out a settlement of stock options backdating charges with the Ontario Securities Commission (OSC).

A New York Times news report said the settlement was announced both by the Waterloo, Ontario-based RIM and the OSC after the conclusion of an OSC investigation into RIM’s options practices.

In addition to the company, the OSC settlement covers eight current and former directors and executives, including the founders James L. Balsillie and Mike Lazaridis. The OSC was scheduled to consider the agreement Thursday.

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The OSC said in a statement that the backdating, which took place between 1996 and 2006, generated an improper gain for employees totaling $66 million Canadian. The targets, the OSC said, have offset about half of that amount through repayments as well as canceled and forfeited options.

In a brief statement, RIM said it was “pleased that the parties have reached an agreement on terms of settlement.” RIM pointed out it had voluntarily disclosed the backdating to regulators in 2006.

After an examination by its board, the company incurred a $248 million expense related to accounting changes caused by improper options grants. Balsillie also agreed to step down as chairman but has remained a director and co-chief executive.

According to the news report, Lazaridis and Balsillie have paid $15 million Canadian toward the cost of the securities regulators investigation to date and the company has contributed $45 million Canadian.

The exact terms of the settlement had not been made public Wednesday, according to the news report.

More information about the case is available from the OSC here.

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