Deals & People April 8, 2015

ABG Southwest Is New Retirement Services Unit

The certified public accounting and business consulting firm REDW has created Alliance Benefit Group Southwest, a separate company for retirement plan recordkeeping and third-party administration (TPA) services.
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Alliance Benefit Group Southwest (ABG-Southwest) was formed as a sister firm to focus exclusively on providing retirement plan administration services. The change took effect earlier this year, when all REDW team members in the group transitioned to the new organization. Its name derives from the group’s established participation in Alliance Benefit Group, a nationwide network of independently owned retirement administration firms.

The creation of a separate company allows the firm’s current clients to access dedicated services that meet the needs of retirement plan sponsors and plan participants, says Carol Cochran, REDW principal and head of ABG-Southwest.

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According to Dennis Davis, senior manager of ABG-Southwest, the independent, standalone firm ensures continuity of service to its clients by the same team of professionals, some of whom have been with REDW for more than two decades. It also enables the creation of program enhancements and of services, he adds.  

The power of the Alliance Benefit Group brand is evident in REDW’s move, says Don Mackanos, president of Alliance Benefit Group. “As the need to retain and attract top talent becomes increasingly more critical, ABG-Southwest is the firm companies want to have on their side,” he says.

Cochran states that the company is not the result of a merger, acquisition or other change in ownership. “This name change does not affect the accounting services offered by REDW,” she says. “We expect ABG-Southwest to grow as prospective clients who need retirement plan administration services—but not the traditional accounting services offered by REDW—engage the new firm.”

ABG-Southwest is planning several programs and enhancements, including a new website for clients, upgrades to the website experience for plan participants, and offering SmartDollar, Dave Ramsey’s financial wellness education package that aims to engage employees in taking control of their finances. SmartDollar is already offered by ABG in Illinois.

Data & Research April 7, 2015

Millennials Expect to Work Past Retirement Age

Millenials are realistic about their future retirement, with 73% expecting to work past retirement age.
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Millennials are realistic. Nearly three-quarters (73%) expect to work past 65, acknowledging that in old age, safety nets will not be there for them and Social Security will not take care of their needs.

“Millennials hold themselves to a high standard financially, and while they’re realistic about some of the challenges they face, they’re definitely not cynics,” says Rebekah Barsch, executive officer and vice president, planning and sales, Northwestern Mutual.

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While less than half (38%) of Americans age 35 and older have set financial goals, Millennials prove to be more pragmatic. A study by Nortwestern Mutual reveals 53% of Millennials have set financial goals, and another 65% classify themselves as more inclined to save than spend. Barsch classifies the generation as “savers,” adding they recognize the required discipline.

Research shows one in three Millennials point to a lack of planning as the greatest obstacle to achieving financial security in retirement. They are taking responsibility to combat this obstacle and plan for the future, with nearly half reporting they have spoken to their partner, friends, family or an adviser about retirement.

“Members of Generation Y have some exceptionally good instincts when it comes to planning. They’re inclined to set goals and are pretty hard on themselves about how they’re doing against them,” explains Barsch.

This generation is also enthusiastic about their future, as nearly half (46%) who expect to work past the traditional retirement age say it would be by choice. They have “positive expectations about what’s in store for them as they get older,” adds Barsch. Research suggests Millennials are excited by their budding careers and do not envision a future where they will choose leisure over work.

The “2015 Northwestern Mutual Planning & Progress Study” includes responses from 5,474 Americans ages 18 or older, including 1,081 Millennials ages 18 to 34, who participated in an online survey between January 12 and January 30, 2015.

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