Data & Research May 14, 2008

Economic Downturn Causes Baby Boomer Burden

Results of a new survey released by AARP indicates some Baby Boomers are delaying retirement and taking premature withdrawals from their retirement savings as a result of the economic downturn.
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An AARP press release said the survey found more than one out of four (27%) workers age 45 to 64 said they postponed plans to retire because of the recent economic downturn. Almost 25% reported they are prematurely taking money out of their 401(k)s and other investments.

In addition, younger boomers (ages 45 to 54) indicated they are responding by postponing bill payments (27%) and cutting back on medications (17%) to deal with the economic crisis, according to the release.

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Retirees and Americans age 65 or older who rely on fixed incomes, are especially feeling the burden of the economic times, AARP found. Almost six in 10 (59%) people 65 and older indicated they are having a harder time paying for food, gas, and medicine, and more than a third (34%) of all retirees have had to help a child pay bills in the last year.

More than one in 10 (11%) retirees reported they have had to seek help from loved ones or charity organizations in the last year.

The national telephone survey of 1,002 people ages 45 and older was conducted April 12 to 23 by Woelfel Research, Inc.

The complete survey results are here.

Deals & People May 14, 2008

Newport Appoints Mid-Atlantic Regional Director

The Newport Group has appointed Greg Clark as Regional Director for the firm’s Mid-Atlantic region.
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Reporting to Newport’s Chief Marketing Officer Tom Pittman, Clark will develop business relationships and identify market opportunities to promote the sale of the firm’s qualified retirement plan administration and investment services to third-party intermediaries. His region includes seven states—Delaware, Kentucky, Maryland, Ohio, Pennsylvania, Virginia, and West Virginia—in addition to Washington, D.C.

Clark has nearly 15 years of experience in the retirement services industry. Prior to joining Newport, he held a variety of roles with Automatic Data Processing (ADP), most recently as National Accounts District Manager. During his career with ADP, he was consistently rated one of the company’s top sales producers.

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“Greg’s extensive experience in the consultative sales process allows him to match customized solutions to plan sponsor needs,’ Pittman said in a company statement. “He has collaborated with an extensive network of financial advisers who view him as an advocate for winning business. We are excited to have him on the team.’

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