Data & Research September 4, 2012

Advisers and Annuities Boost Retirement Confidence

Retirement confidence is high for both Baby Boomers and Generation X, according to a report from the Insured Retirement Institute (IRI).
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IRI research shows 76.2% of Baby Boomers and 78.2% of Generation Xers stated they were somewhat to extremely confident they will have enough money to live comfortably throughout their retirement years. However, only 51.4% of Baby Boomers and 40.7% of Generation Xers have calculated how much they will need in retirement savings. Roughly one-fifth (21.6%) of Baby Boomers and 40.8% of Generation Xers have less than $50,000 saved for retirement; and 21.7% of Baby Boomers and 27.8% of Generation Xers reported having no savings for retirement.   

In addition, many members of both generations (40.8% of Baby Boomers and 45.1% of Generation Xers) report they are “not very” or “not at all” knowledgeable about investing in securities.  

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The research found that working with a financial adviser increases retirement confidence. Among Baby Boomers who consulted with a financial adviser, 42.8% are extremely or very confident compared with 32.3% of those who did not. Among individuals in Generation X who consulted a financial adviser, 47.6% are extremely or very confident compared with 28.9% of those who did not.   

In addition, those who have calculated their retirement savings needs have higher levels of confidence in meeting their retirement savings goals. Among Baby Boomers who completed the calculation, 44.2% are extremely or very confident compared with 29.0% of those who did not. Among individuals in Generation X who completed the calculation, 46.9% are extremely or very confident compared with 27.9% among those who did not.

 

 

(Cont...)

According to IRI, which provides education about annuities and insured retirement strategies, its research shows annuity owners have higher levels of retirement confidence. Among Baby Boomers who own an annuity, 53.4% are extremely or very confident compared with 31.0% who do not. Among individuals in Generation X who own an annuity, 49.4% are extremely or very confident compared with 31.2% among those who do not.  

IRI also found annuity owners are more likely to engage in positive planning behaviors, such as completing a retirement savings need calculation – 69.6% of Baby Boomer and 60.4% of Generation X annuity owners compared with 44.3% of Baby Boomers and 34.0% of Generation Xers who do not own an annuity; and consulting a financial adviser – 73.7% of Baby Boomer and 62.3% of Generation X annuity owners compared with 34.8% of Baby Boomers and 29.7% of Generation Xers who do not own an annuity.  

Percentages of both generations reported that in the past 12 months they stopped adding money to a retirement savings plan (29.3% of Baby Boomers and 22.6% of Generation Xers); postponed plans to retire (20.9% of Baby Boomers and 17.1% of Generation Xers); and prematurely withdrew funds from a retirement plan (16.0% of Baby Boomers and 15.0% of Generation Xers).  

The IRI report is here.

 

Deals & People September 4, 2012

ING Makes Retirement Business Appointments

Several personnel appointments to support the small to midsize corporate retirement plans market were announced by ING U.S.’s retirement business.
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Jeff Darnowski was hired as a client relationship manager; Thomas Fleming was promoted to regional vice president of sales; and Susan Shapiro, currently regional vice president (RVP) of service in the New Jersey region, has taken on the added responsibility of becoming the RVP of service for the expanded New York City/New Jersey area.    

Based in New York, Darnowski is responsible for ongoing plan sponsor relationship management and service delivery for ING U.S.’s existing 401(k) retirement plan sponsors located in metro New York.  He most recently managed the International Benefits area at AIG.  Prior to that, he was director of Retirement Operations at Lord Abbet & Company where he was responsible for client service delivery in the company’s small market 401(k) program.  Darnowski also held several client service positions in the Retirement Group at Merrill Lynch.

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In his role as regional vice president of sales based in New York City, Fleming is responsible for the sales and distribution of 401(k) retirement plans to the wirehouse channel in metro New York, Long Island and northern New Jersey.  Fleming has been with ING U.S. for more than 12 years, working in various sales and service roles, most recently as head of inside sales where he managed the internal sales desk for small to midsize corporate retirement plans.   

In her expanded role as regional vice president of service, Shapiro is responsible for leading the service teams for the New Jersey and New York City territories.

Shapiro and Fleming report to Patrick Bello, senior vice president of sales for the northeast, and Darnowski reports to Shapiro.

 

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