Monday, June 13, 2011
GETTING THROUGH THIS TRANSITIONAL PHASE IN RETIREMENT PLANNING
1:58 PM | 
Posted by
pensionfinancialservices |
We hate to sound too promotional but if ever there was a time to work with a retirement benefits company like Pension Parameters, it’s now. Why? Because the need for personal service is becoming more and more important as the country goes through transitions in types of plan popularity, shifts in the number of retirees coming of age, and the inevitability of government regulation changes. With all of these changes you can expect to become overwhelmed by new retirement savings vehicles from big players in the field.
At Pension Parameters Financial Services, we are most concerned about building our customers’ portfolio values based on their individual needs, which we always like to review on a one-to-one basis. Our process is always underlined with “answer questions; supply options. “
A recent Reuters article offered this conversation, which we wanted our readers to see.’ “What's the purpose of saving for retirement? Is it security or wealth building?" asks Steven Kreisberg, director of collective bargaining for the American Federation of State, County and Municipal Employees. "We've always viewed our pensions as old age insurance; it's not supposed to be a wealth producing vehicle for handing down wealth from one generation to another."
But workers holding sizable assets in their retirement accounts may not agree.
Kreisberg favors the traditional defined pension plans which paid workers a regular amount monthly for as long as they lived. Now financial services companies are introducing new products aimed at making defined contribution plans behave more like those pensions, at least during the withdrawal years.”
Mutual fund powerhouses including Fidelity Investments and Vanguard investments have created automatic payout mutual funds especially designed for rollover money.
And insurance companies are pitching immediate annuities at employers, in the hopes employers might offer them to retiring workers within their 401(k) accounts.”’
During this transitional phase, you can expect to see certain things occur:
- The Obama Administration has expressed interest in the idea of offering employers some kind of 'safe harbor' for agreeing to keep retirees' money in their 401(k) accounts. Though many experts predict a federal program governing 401 (k) withdrawals is far in the distant future.
- A recent survey showed most workers wanted to retain control over their retirement money, but older workers are more willing to use more from each paycheck for a guaranteed lifetime benefit. Starting in 2012, Labor Department rules will require the clear disclosure of all 401(k) fees.
“As these issues begin unfolding and new trends start developing, we’ll keep our customers completely updated about all new options and how new rules affect them,” says Kevin McCormack, President, Pension Parameters Financial Services.
“It’s a good time for organizations that are on auto-pilot with their retirement fund companies to consider working with a smaller, more personal organization that has access to the most lucrative funds in the business,” he says. “As our clients attest in their case studies, they are glad to have made the switch to Pension Parameters quite often because when they’ve assumed that they were automatically being updated in a comprehensive way in the past, unless they had an advisor who was watching them closely- and talking to them- they have missed opportunities.”
“It’s an ideal time to reassess where you and your employees stand and we will always assess the needs of your company and provide you with the best and most creative options so you won’t have regret later.”
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