Retirement benefits

Though the 401(k) and defined contribution market gets lots of attention from all sectors of society and has a significant amount of assets, there are only about 110 national providers and advisory firms focused on this market.

Employees do not save enough for their eventual retirement needs, research shows. But, with tools, help and education from financial advisers that paradigm may shift - benefiting not only the employee but the employer and adviser.

Employees around the country are in need of direct, simple guidance to help them reach their retirement goals, according to a survey released by State Street Global Advisors.

The ongoing shift from defined benefit (DB) to defined contribution (DC) plans has prompted the financial services industry to rapidly develop products that deliver a steady stream of retirement income, one of the biggest shortcomings with DC plans. While numerous retirement income products are hitting the marketplace, employers and regulators are grappling with how they fit within qualified retirement plans.

Baby boomers appear to be taking a second look at their life insurance policies as an alternative financial solution to paying for retirement, where they sell an unneeded life insurance policy for a portion of the face amount. These transactions, known as life settlements, have become a mainstream practice in the past several years, particularly as baby boomers begin exploring all financial options to paying for retirement, including previously unconventional alternatives.

Only 25% of plan sponsors with 100 or more employees and plan assets between $5 million and $500 million partner with a professional adviser, according to a recent report from The Retirement Advisor Council. The study demonstra

Broker-dealers are up in arms over a little-known provision of the Department of Labor's 401(k) plan fee disclosure rules. Ready why some industry observers say the brokerage industry only has itself to blame.

Last week's report on unemployment shows that the economy continues to gather steam - payrolls grew by 200,000 and the jobless rate ticked downward again, to 8.5%.

Birds of a feather flock together, and it seems the saying also rings true for small business owners looking for a financial advisor. According to a new study released yesterday by The American College, small business owners prefer to speak to financial advisors of the same sex, with men exhibiting a stronger gender bias than their female counterparts.

Planners have been hearing about and preparing for the baby boom ever since the first 1946er became a client. Yet their single-minded focus on boomers may mean they've missed another demographic trend: the singles surge.

Spurred by its $16.2 billion acquisition of American Life Insurance Co., MetLife Inc. moved into the top five while American International Group Inc. slid from third to fifth in A.M. Best’s rankings of the top 25 global insurers based on nonbanking assets.

Americans, particularly baby boomers, are more nervous about and unprepared for their retirement today than at any time in history.

The focus of discussions in the defined contribution/401(k) world seems to have shifted overnight from process to outcomes.

For once, it’s the whippersnappers who are behaving more wisely. At least when it comes to saving, Generation X and Generation Y workers are more diligent than their peers.

Americans' trademark optimism is intact, at least in regard to retirement, despite the economic turbulence that is reportedly forcing many people to work longer and make do with less. In fact, many retirees found only one downside.

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

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.