Data & Research May 29, 2013

Americans Closest to Retirement Feel Unprepared

While people are optimistic and confident in numerous areas, a survey found concern, worry and a sense of unpreparedness on several financial fronts.
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According to the “Measuring Optimism, Outlook and Direction (M.O.O.D.) of America” survey by Lincoln Financial Group, top financial concerns that keep Americans up at night include personal debt (39%), retirement planning (32%) and taxes (31%). Only 18% of those at the doorstep of retirement, those between the ages of 55 and 64, said they feel “very prepared” for the next financial phase of life.  People between the ages of 45 and 54 are even less confident, with just 11% feeling “very prepared.”

For many Americans, one of the primary ways to secure a sound financial future is by seeking advice from a financial professional. The survey found that “in control” Americans who speak with a financial adviser are six times more likely (35% compared to 6%) to feel “very prepared” for retirement than their counterparts who have neither taken control of their lives nor spoken with a financial professional.

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The survey found that 38% of those polled use financial advisers or planners for financial advice. Other sources include: 

  • Information obtained via online searches (35%);
  • Spouse or significant other (31%);
  • Friends (24%); and
  • Parents and other family members, excluding children (21%).

“Overall optimism aside, the fact that such a large percentage of Americans closest to retirement say they feel ill-prepared is alarming,” said Dennis R. Glass, president and CEO of Lincoln Financial Group. “It is important now, more than ever, that people be empowered to take charge by viewing financial concerns through a lens of opportunity, not through one of insurmountable challenge.”

The survey was carried out by Whitman Insight Strategies on behalf of Lincoln Financial Group. It was conducted during late March 2013 among 2,322 adults, 18 years of age and older, across the United States. More information is at https://www.lfg.com/lfg/DOCS/pdf/prr/MOOD_Supporting_Data.pdf.

 

Compliance May 29, 2013

Agencies Announce Relief for Tornado Victims

Regulators are offering relief for certain payment and filing deadlines for plan sponsors affected by the recent storms in Oklahoma.
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In OK-2013-3, the Internal Revenue Service (IRS) provided relief in connection with filing extensions for Form 5500 series returns as a result of the disaster for taxpayers who reside or have a business in the disaster area. In addition, the Pension Benefit Guaranty Corporation (PBGC) is waiving certain penalties and extending certain deadlines in response to the severe storms and tornadoes that began on May 18 in Oklahoma.  

Businesses in Cleveland, Lincoln, McClain, Oklahoma and Pottawatomie counties that had tax filing deadlines that occurred starting May 18 will have until September 30 to file Form 5500 returns. More information is here.   

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If the plan administrator of a plan is a “Designated Person,” according to the PBGC definition, for purposes of assessing any late payment or late information penalty, the agency will treat as timely any premium filing required to be made for the plan beginning on or after May 18 and on or before September 30 if the filing is made by September 30. Thus, for any such filing, PBGC will waive the applicable penalty, but not the applicable interest charge.  

If the plan administrator of a plan that is terminating in a standard termination is a “Designated Person,” any of the plan termination deadlines for the plan that fall on or after May 18 and on or before September 30 are extended to September 30, 2013. If a “Designated Person” is responsible for filing a reportable event post-event notice for which the deadline falls on or after May 18 and on or before September 30, that person’s deadline for filing is extended to September 30.  

This Disaster Relief Announcement does not cover every situation in which PBGC disaster relief may be warranted, and the agency will consider requests on a case-by-case basis. Instructions for requesting relief can be found here.

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