No Difference in Savings Among Those in Phased Retirement

Workers who expect to work during retirement and those who do not expect to are equally likely to save for retirement, according to data from the Employee Benefit Research Institute (EBRI).

Married workers and those who have tried to do a retirement savings needs calculation are more likely than their counterparts to have set money aside for retirement, EBRI found in its 2009 Retirement Confidence Survey.

According to the EBRI data, major drivers of retirement saving are a worker’s education and income levels (see “Education Level Influences Plan Participation).

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Among those with a bachelor’s degree or higher, 92% of workers report they have saved for retirement, compared to 66% of those with a high school education or less.

As income increases, so does the likelihood of workers saving for retirement: 93% of workers in households with $75,000 or more in annual income report saving for retirement, compared to 49% in households with annual income of $35,000 or less.

Workers Who Report Having Saved for Retirement, by Key Characteristics

 

Percentage Who Have Saved

Education:

 

High school or less

66

Some college

70

Bachelor’s degree or more

92

Household income:

 

Less than $35,000

49

$35,000-$74,999

80

$75,000 or more

93

Marital status:

 

Married

82

Not married

64

Done household needs calculation:

 

Yes, have done calculation

88

No, have not

64

Expecting to work during retirement:

 

Yes, expect to work

75

No, do not expect to work

76

 

From Wall Street to Tweet Street

Customers can follow their bank on Twitter.

In the past year, several financial services firms—such as Bank of America, Chase, Discover Card, Scottrade, Wachovia, and Wells Fargo—have been using Twitter, according to research from Corporate Insight.

The firms have used the social networking site to comment on breaking news; direct attention to a press release or Webpage; promote products and services; and respond to other people that comment about their firm.

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The latter represents a new way for institutions to reach out to customers, Corporate Insight said.

“Firms like Bank of America (1,782 followers) and Wells Fargo (1,042 followers) are actively using Twitter as a platform to answer consumer questions and address their complaints—even setting up calls with customer service to ensure the user’s issue is handled well,” explained James McGovern, vice president of Consulting Services at Corporate Insight, in a release from the firm. “It’s been impressive to see these companies find a valuable use for this medium and we expect other firms will follow suit.”

In addition to directly responding to follower questions, Wachovia (3,227 followers), an early and active tweeter, has been able to use its Twitter profile to highlight information regarding its acquisition, the report found (see “Wachovia Leaves Citigroup at the Altar). Other tweets have addressed everything from general topics like phishing scams to direct responses to follower questions.

Bank of America launched BofAHelp in January to address customer service inquiries. In just a few months, the profile has received 1,782 followers, according to the report. Scottrade uses an approach by handing the Twitter reins to one individual, thereby letting followers communicate with a real person rather than an unnamed group of individuals who post on behalf of the firm.

Wells Fargo registered its Twitter profile back in 2007, but took its time before joining the conversation. It recently launched a profile called Ask_WellsFargo to deliver customer service via the platform. The profile already has some impressive numbers, with 1,042 followers in just one month.

Advisers might not have jumped on the Twitter bandwagon because of compliance concerns, but it represents another medium through which financial firms are reaching out to consumers. (see “IMHO: Tweet Spot?“).


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