Data & Research February 27, 2013

Retirees Not Retiring

A recent CareerBuilder survey finds the majority of workers plan to continue to work after they reach retirement age.
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Sixty percent of workers ages 60 and older said they would look for a new job after retiring from their current company, up from 57% last year.

When asked how soon they think they can retire from their current job, more than one in ten (12%) respondents said they do not think they will ever be able to retire. Other responses included:

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  • One to two years: 27%;
  • Three to four years: 20%;
  • Five to six years: 27%;
  • Seven to eight years: 6%;
  • Nine to 10 years: 5%; and
  • More than 10 years: 4%.

“We’re seeing more than three quarters of mature workers putting off retirement, largely due to financial concerns, but also as a personal decision made by people who enjoy their work,” said Brent Rasmussen, president of CareerBuilder North America.

Fortunately for these workers, many employers are looking to hire more seasoned staff. Forty-eight percent of responding employers said they plan to hire workers ages 50 and older this year, and 44% said they hired workers older than 50 in 2012. More than three quarters (76%) of the employers surveyed would consider an application from an overqualified worker who is 50-plus, and the majority (59%) said mature candidates bring a wealth of knowledge to an organization and can mentor others.

The nationwide survey was conducted online between November 1 and November 30 by Harris Interactive on behalf of CareerBuilder, and included more than 680 U.S. workers age 60 and older, as well as more than 2,600 hiring managers and human resources professionals.

Compliance February 27, 2013

DOL Recovers $43M for Madoff Victims

The Department of Labor (DOL) reached a settlement to compensate employee benefit plans for losses suffered through investments in Bernard L. Madoff’s Ponzi scheme.
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The settlement with Austin Capital Management, which indirectly invested in Madoff’s scheme, provides payment of more than $34 million to worker retirement and health care plans. The agreement follows an earlier settlement with Austin Capital’s parent company, KeyCorp, for more than $9 million.

Recoveries from both settlements total more than $43 million for plan investors in funds managed by Austin Capital. The money will be distributed to the plans by an independent fiduciary selected by the DOL. Austin Capital Management also will pay a civil penalty of more than $4 million.

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Based on its investigation, the DOL contended that Austin Capital violated the Employee Retirement Income Security Act (ERISA) by causing or permitting certain funds to imprudently invest the assets of ERISA-covered plans with Madoff through investments in the Rye Select Broad Market Prime Fund L.P., offered by Tremont Partners Inc., which was 100% invested with Bernard L. Madoff. 

The funds involved were the Austin Safe Harbor ERISA Dedicated Fund, Safe Harbor Portable Alpha Offshore Fund One, Safe Harbor Portable Alpha Offshore Fund Two, Safe Harbor Offshore Fund, All Seasons Qualified Purchaser Fund, All Seasons Offshore Fund and the Balanced Offshore Fund.

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