Retirement

American workers polled by Financial Finesse had improved how they manage financial stress since last year, but even the most secure groups of Americans felt strained about their money and did not have their financial houses in order.

What are most Americans planning to do when they retire? The reality is that many don’t have a plan, or their plan is to never retire, which may not be an option if they fall ill or can’t work for some reason.

Many investors are unaware of the options available for their 401(k) account left with a previous employer, Fidelity Investments found. Nearly one-third (30%) who made a job transition are unsure of what to do with their workplace retirement savings.

A perfect storm combination of eroding Social Security trust funds, high unemployment and a flood of baby boomers all hitting retirement age at the same time will put enormous strain on the system for the next two decades and result force retirees and their advisors to come up with alternative retirement income plans and strategies to make ends meet.

The majority of employers want to prepare their employees for a financially secure retirement, but have found educational campaigns unlikely to result in substantial changes in behavior. Instead, Steve Utkus, director of Vanguard’s Center for Retirement Research, recommended that employers use “participant inertia to their benefit and do it exclusively with plan design.”

Employee education programs can lead to positive retirement investment decisions, according to a roundup of first-quarter 401(k) savings rates from Fidelity Investments.

A group of Democratic members of the House, led by Rep. Carolyn McCarthy (D-N.Y.) and Rep. Rush Holt (D-N.J.), has written to the U.S. Department of Labor, criticizing a new regulation that would redefine the term “fiduciary” in the Employee Retirement Income Security Act of 1974 (ERISA).

AXA Equitable Life Insurance Company has introduced a structured investment option for its EQUI-VEST® series of variable deferred annuities available to employer-sponsored retirement savings plans.

The future of the investment advisory industry depends on reducing the cost of doing business, said Mark Casady, Chairman and CEO of LPL Financial, in the opening keynote at the Money Management Institute’s 2011 annual convention, held last week in Boston.

At a time when more Americans than ever are petrified they won't have enough set aside for retirement, a new LIMRA survey suggests that peace of mind could be just a phone call away.