Younger Workers More Focused on Fiscal Fitness

Fiscal fitness, not physical fitness, is a slightly higher priority for younger adults than for older adults, according to a survey commissioned by Union Bank.

However, only a few adults mentioned meeting with a financial adviser as how they plan to get in fiscal shape, according to a press release of the results. Nearly half (45%) of respondents indicated they plan to save money on a monthly basis through their existing bank accounts. Only a small number of adults said they intend to contribute to a new savings account (15%) and/or meet with a financial adviser to maximize their savings through tax-deferred accounts (14%).

The survey found 59% of respondents ages 18 to 34 are focused more intently on achieving fiscal fitness rather than physical fitness in 2009 (41%). In contrast, 61% of adults age 55 and older said physical fitness was a high priority for 2009, and 39% selected fiscal fitness.

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In addition, fewer older adults (38% of those age 55 and older) expressed interest in ways to save automatically than Americans age 18 to 34 (46%), which Union Bank said may account for the older group’s sense that attaining fiscal fitness is harder today than achieving physical fitness (72%).

The survey revealed that 72% of adults age 34 to 55 believe they do not have enough money saved in the proper accounts to make it through the next year. In addition, nearly half of those surveyed (45%) said that if they had access to a large amount of money without penalty, paying off debt would be their top priority rather than saving money or making a large purchase such as a home, car, or vacation.

For many respondents, a significant barrier to saving money is a lack of extra funds at the end of the month, a sentiment especially strong among women age 35 to 44 (70%).

Harris Interactive fielded the study from December 5 to 9, interviewing a nationwide sample of 2,137 adults aged 18 years and older.

SecurePath Provides Access to Fund Architects Portfolios

Transamerica Retirement Management, Inc., has selected money management firm Fund Architects to enhance its SecurePath Advisory Services retirement planning product.

SecurePath will provide access to the Fund Architects suite of services to qualified clients, according to an announcement. Fund Architects provides a range of asset allocation portfolios.

“Part of the SecurePath by Transamerica mission is to bring the kind of financial planning resources typically reserved only for the affluent to a much wider range of individuals. Fund Architects helps us achieve this goal by making quality money management affordable,” said Phil Eckman, CEO of Transamerica Retirement Management, in a news release. “Our clients who seek investment advice from our financial advisers will now have access to a complete offering of portfolios that were developed from state-of-the-art fund selection and asset allocation tools.”

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Transamerica launched SecurePath in October 2007 to provide employees on the verge of retirement with the guidance, tools, and resources to help turn accumulated retirement assets into a lifetime income stream (see “Transamerica Introduces Retirement Income Unit’). Content on the SecurePath Web site includes The Social Security Opera, intended to demonstrate that applying for Social Security benefits is not a daunting task (see “Social Security Guidance through Opera?’) and a Second Careers section to help pre-retirees and employers plan for the type of retirement that best suits them (see “Transamerica Helps Pre-retirees Prepare for Second Career’).

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