Data & Research September 17, 2008

Single Women Far Behind Retirement Savings Curve

Many single women are ill-prepared and unlikely to achieve a financially secure retirement if they don’t take action now, according to the Ninth Annual Transamerica Retirement Survey.
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According to the survey, single women estimate needing a median amount of $500,000 by the time they reach retirement – an amount nearly two-thirds of respondents admitted was simply a guess. More than one-third report that they have saved less than $25,000 for retirement, while only one in 10 reports having saved more than $100,000, according to a Transamerica announcement. Only 6% completed a worksheet or calculation, or received their estimate from a financial adviser.

The survey found that single women most frequently cite 401(k) plans and IRAs as their expected primary source of income in retirement, yet only 69% of single women who work full time report that their current employer offers them a 401(k) plan. This can be explained, in part, by the fact that a majority of single women (56%) would prefer a job with a higher salary over one with excellent retirement benefits.

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For single women who work part time, the picture is even gloomier: The survey found that 64% of them have no retirement benefits offered to them by their employer, the news release said. As for single women who have access to a 401(k) or a similar employer plan, 70% participate with a median contribution rate of 6%.

“Too many single women are still not saving for retirement and those who are should be saving much more,” says Catherine Collinson, president of the Transamerica Center for Retirement Studies, in the news release. “For most single women, their current savings rates are unlikely to build a large enough retirement nest egg. It’s important for everyone to conduct a proper analysis to estimate their retirement needs and to create a plan that will help get them there.”

Single women face competing financial priorities, which influence their ability to save for retirement. The majority of single women cite either “just getting by” (33%) or “paying off debt’ (30%) as their greatest financial priority while only 17% cite “saving for retirement,’ Transamerica said.

Further, the survey found that single women frequently (46%) cite “outliving their money’ as one of their greatest fears about retirement.

Deals & People September 17, 2008

UNIFI Unifies Summit, Calvert Fund Families

UNIFI Companies is consolidating the operations of its two affiliated mutual funds: Summit Mutual Funds and Calvert Group, Ltd.
Reported by

On September 9, the Board of Directors of Summit Mutual Funds, Inc. approved a plan whereby Calvert Asset Management Company, Inc. will assume management of the Summit Mutual Fund assets. As a result, Calvert will be the UNIFI Companies’ sponsor of mutual funds for the retail, institutional and insurance market places. This transaction, now subject to Summit Mutual Fund shareholders’ approval, is expected to be completed in early December 2008.

Under the terms of the transaction, Calvert Asset Management Company, Inc. will purchase the mutual fund operations of Summit Investment Partners, Inc. and become the Advisor to the Summit Mutual Funds. These funds include the Apex series of retail funds and Pinnacle variable insurance portfolios.

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Incorporation Plans

Summit Investment Partners’ investment products and teams will be incorporated into the Calvert organization as follows:

Within the retail mutual funds:

  • The Summit Everest Fund, managed by James McGlynn and the large cap value team, will merge with the Calvert Large Cap Value Fund that is currently in registration with the SEC. James McGlynn and his team will become part of Calvert’s investment advisor, bringing their recognized track record of value equity management and enhancing Calvert’s in-house equity management capabilities.
  • Kevin Aug and Sam Cooper, assistant portfolio managers of Summit’s High Yield Bond Fund, will maintain the Fund’s investment track record and move over to Calvert, becoming part of Greg Habeeb’s taxable fixed income team. The Fund will be renamed the Calvert High Yield Bond Fund.
  • Apex Series Bond and Money Market funds will merge into existing Calvert Funds. The Nasdaq-100 Index Fund will be liquidated.

Additionally, Calvert will include one of Summit funds into its sustainable and responsible fund family. The Calvert Large Cap Value Fund, (formerly the Summit Everest Fund), will become the first in Calvert’s new SAGE (“Sustainability Achieved Through Greater Engagement”) series of funds. Within the new SAGE series, the Fund will invest in a range of companies that are consistent with its threshold responsibility standards. The companies in the investment portfolio may be emerging sustainability leaders and/or entities which have yet to make significant progress but have the potential to do so, according to a press release.

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