Nevada Retirement Planners

PHILADELPHIA (AP) — Managed care company Cigna Corp. says Chairman and CEO H. Edward Hanway will retire at the end of 2009.

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A national survey shows that to save money, some employers are reducing or eliminating contributions to retirement plans.

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NEW YORK (Reuters) – American International Group Inc had questioned for years a retirement bonus plan for top managers because it was funded by a private company at no cost to AIG and that may have violated good governance standards, AIG’s former CEO Maurice “Hank” Greenberg testified on Thursday.

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LONDON (AP) — The Royal Bank of Scotland PLC said Thursday that its former chief executive Fred Goodwin has agreed to halve his annual pension after outrage at the size of the payout and threats by the government to take legal action.

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Losses in American 401(k) retirement accounts are causing a "significant" number of older workers to delay their retirement, according to a survey by Washington-based consultants Watson Wyatt.

It found that 34% of all workers have increased their planned retirement age in the last 12 months but older workers are affected more: 44% of those aged 50 or more are postponing retirement, compared with only 25% of those under 40. While the average employee aims to retire at 65, half of the 50-plus crowd plan to retire at 66 or even later.

Among older workers aged 50 to 64, 76% cited the decline in the value of their 401(k) accounts as the most important reason for postponing  retirement. Second was the high cost of health care (63%) and higher prices for basic necessities (62%). Of this group, 54% indicated they will work for at least three years longer than previously expected. The survey of more than 2,200 full-time workers was conducted in February 2009.

“The economic crisis has affected many workers’ retirement plans and nest eggs, but those nearest to retirement have been especially hard hit,” said David Speier, senior retirement consultant at Watson Wyatt. “Older workers do not have the time to offset declining retirement account values, either by recouping their investment losses or significantly increasing their savings rate. For many, the only choice is to delay retirement.”

Defined Contribution pensioners more likely to postpone retirement than those in DB plans

The survey also found workers in defined contribution (DC)-only plans are more likely to delay retirement than those with defined benefit (DB) plans. About 26% of those with DC plans, including 401(k)s, plan to retire before the age of 65, compared to 41% of those with DB plans. Generally, DB plans shelter workers from direct exposure to stock-market risk, while DC plans as well as many tax-sheltered retirement accounts, expose participants directly to stock-market losses.

“Retirement programs are meant to assist with an orderly transition of a company’s workforce, but with older workers staying on the job longer, employers will be faced with challenges such as inflated benefit costs and hiring issues,” said Lisa Canafax, senior retirement consultant at Watson Wyatt. “DB plans provide predictable benefits and offer workers incentives to retire at a certain age, whereas DC plans could encourage workers to work longer just when companies are trying to reduce the size of their workforce. The time is ripe for employers to take a close look at their existing retirement program to make sure it meets the needs of both workers and employers.”

More information can be found here.

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Source The Wealthy Boomer : Retirement

Fred Goodwin took a cut of more than 50 percent after months of public outrage following the government bailout of Royal Bank of Scotland.

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LONDON (Reuters) – Part-nationalised lender Royal Bank of Scotland said former chief executive Fred Goodin had agreed to more than halve his widely criticised 703,000 pound pension award.

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LONDON (Reuters) – Part-nationalised lender Royal Bank of Scotland said former chief executive Fred Goodin had agreed to more than halve his widely criticised 703,000 pound pension award.

Read more.

LONDON (Reuters) – Fred Goodwin, the former chief executive of part-nationalised lender Royal Bank of Scotland , has agreed to more than halve his widely criticised 703,000 pound pension award, Sky News reported.

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LONDON (Reuters) – Fred Goodwin, the former chief executive of part-nationalised lender Royal Bank of Scotland , has agreed to more than halve his widely criticised 703,000 pound pension award, Sky News reported.

Read more.