Retirement

Not only are older American workers (age 50 and over) expecting to work longer, but many now say they expect to never retire, according to the nonpartisan Employee Benefit Research Institute. Data suggest the trend may be tied to the recent economic recession.

As the effects of the recent financial crisis continue to spread across the globe, financial stress is an issue for both women and men.

Traditionally, 401(k) investment menus have consisted of core asset classes such as U.S. stocks and investment-grade bonds. However, defined benefit plans have relied on a much broader range of asset classes and have historically outperformed defined contribution plans, says Bill McDermott, head of defined contribution services at Goldman Sachs Asset Management.

The Pension Protection Act of 2006 is having a positive effect on 401(k) plans, according to Fidelity Investments.

Retirement planning almost always starts with one number: A guesstimate of the percentage of pre-retirement income you're expected to need after you retire. That's called the "replacement rate" and is often pegged by industry experts at around 80% of a household's earnings.

We all talk about it. We all mean to do it. But redesigning your retirement plan with the needs of women and minorities as a priority is something that takes things most of us just do not have in our quiver of resources - time, money for the match or employer contribution, staff and the data to know what the issue really is for your population so you can make a difference.

Retirement plans collectively - but unwillingly - hold billions of dollars that plan sponsors have unsuccessfully tried to distribute to former participants.

Some experts are predicting that there will be fewer advisers focused on the 401(k)/defined contribution market. With greater competition, price pressure, more onerous regulations and increased fiduciary liability, that argument is understandable. But regardless of the pressure and challenges that the DC market poses, the number of elite advisers that focus on the DC market will double in the next five years because of the size of the opportunity.

Turning the corner into 2012, 401(k) plans are regaining some of their lost glitter, but more buffing needs to be done.

Nearly two-thirds, 63.8%, of plan sponsors have changed the investment lineup in their 401(k) plan in the past year, up markedly from a mere 20% in 2008, according to the Profit Sharing/401(k) Council of America.