Products December 6, 2011

MetLife Releases Free Guide with Retirement Planning Tips

MetLife Mature Market Institute has released a free consumer retirement planning guide, The MetLife Tips for Types Workbook.  
Reported by

The guide is a follow-up to a study MetLife conducted earlier this year, Best-Case Strategies for a Flexible Retirement, which classified the various types of retirement planners (see “Expecting the Unexpected“).

Through a series of questions and answers, the publication will help Americans identify their own type and guide them through the planning stages, specifically the important steps to a happy and financially sound retirement.

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“People will easily recognize themselves through the questions we pose, but they shouldn’t be dismayed by the categorizations,” said Sandra Timmermann, Ed.D., director of the MetLife Mature Market Institute.  “This guide will help just about everyone move forward in pursuit of a comfortable retirement from wherever they are in life and within the parameters of whatever ‘type’ they happen to be. Even the best planners are hit with surprises, the unexpected life trigger events that can derail the most carefully laid plans.” 

 (Cont...)

The questions posed revolve around people’s views of the future, how they plan for the unexpected and their general household budget practices. Through the answers, individuals will be able to identify themselves as a planner type who belongs in one of three groups:

1. Waiting – Pathways open, but action not yet taken.

2. Willing – Plans made, but in a holding pattern; not much forward motion.

3. Working – Already embarked on a retirement pathway, tools in hand and in pretty good shape.

From there, they’ll receive more specific instructions. For the third group, the advice is to stay the course and track progress so necessary adjustments can be made. For the others, there is more specific advice on how to determine income and investment strategies, how to plan for the unexpected, gather information, do the math, seek advice and put a plan in motion.

The guide also contains real-life stories of individuals and couples at various stages in the retirement planning process to assist those who may recognize themselves and emulate the tips offered by the people profiled.

The MetLife Tips for Types Workbook can be download at www.MatureMarketInstitute.com.  

Data & Research December 6, 2011

Economy Greatest Source of Stress among Americans

The Principal Financial Well-Being Index shows the economy is the greatest source of stress for Americans.   
Reported by

The Index found 52% of retirees and 42% of workers reported a high stress level in regard to the economy, while 30% of retirees and 34% of workers said personal finances caused high stress. Thirty percent of workers say their job causes stress, and far fewer (19% of retirees and 15% employees) report stress over physical health.

Americans over the age of 50 (51% of those 50-64 years and 59% of those 65 years and older) reported higher stress levels regarding the economy than those under 50 (30% of those 18-34 years and 40% of those 35-49 years). Overall, females (41%) were significantly more likely than males (29%) to rate their stress level related to their personal finances as high.

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With the economy a main source of stress, many Americans also report concern over market volatility impacting their long-term and short-term financial well-being. Two out of five workers (41%) and one-third of retirees say they are nervous about their ability to save due to market volatility. Another quarter of workers (26%) and one-third of retirees have reduced their spending because they have lost money due to market volatility. Furthermore, 22% of workers and 18% of retirees have moved to a more conservative investment approach.

When asked to select their top financial blunder of 2011, approximately one out of five (19%) workers said they did not save enough during the year. Eight-teen percent of workers said increasing debt was their top mistake. 

 (Cont...)

Looking toward 2012, workers’ top financial-specific New Year’s resolutions were saving a set amount of money each month and paying off credit card debt— both selected by 26% of workers. Twenty-one percent of workers also said they are resolving to reduce their spending by a specific amount each month in 2012.

While Americans are hoping to right the wrongs of 2011, many have concerns about the coming year, which may impact their financial decisions. For workers, top concerns for 2012 are:

•  Economic uncertainty (62%);
•  Gas prices (58%);
•  Healthcare costs (55%); 
•  Food prices (49%); and
•  Increased taxes (45%).

The Principal Financial Well-Being Index survey was conducted online within the U.S. by Harris Interactive on behalf of the Principal Financial Group between October 20 and October 31, 2011, among 1,121 employees and 533 retirees.

See the full report and past results at www.principal.com/wellbeing. 

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