|Living longer means new challenges and strategies for your retirement.|
He uses one of his company's own products as an example of how some might plan for that last demographic: life insurance products with a longevity rider that kick in at age 90. As we live longer, the risk of someday needing chronic care will increase. As such, how people are cared for later in life is radically changing, with financial implications. "In the old days
Executives at Lincoln Financial Group ( LNC) recently looked at what they see as the top retirement trends, many of which will affect 2012. Chuck Cornelio, president of retirement plan services for Lincoln Financial, predicts fee disclosure regulations, in-plan guarantees, target date strategies and retirement planning optimism will be among the significant trends affecting the retirement plan industry in the months, and possibly years, ahead. "We see greater interest in employer-sponsored retirement plan savings and investment options that offset volatility, include guarantees and offer flexibility," Cornelio says. "In this new era of fee disclosure, plan providers are increasing their emphasis on demonstrating the value of their services." He also thinks that an "optimistic approach" to meeting retirement goals will be more of a focus than the traditional savings push that paints a bleak future of an inadequate nest egg. "People are tired of being scared or berated into saving and many are simply overwhelmed by the thought of even getting started," he says, stressing the importance of "positive encouragement and reinforcement." Fee disclosure regulation continues to be a topic at the forefront for the industry, Cornelio says. "Transparency is a good thing," he says, and additional information will "lead to better investment and saving decisions."
As for the role of employers, a study released last month by Aon Hewitt, the global human resources consulting and outsourcing business of Aon ( AON), found that they are "embracing innovative solutions to help rethink their retirement benefits plan strategies." Aon Hewitt surveyed more than 500 large U.S. employers, representing more than 12 million employees, to determine their current and future retirement benefits strategy. According to the findings, just 4% of employers are very confident that their workers will retire with adequate retirement assets, down substantially from 30% last year. Fewer than one in five employers believe workers will be able to manage their income during retirement. More than half (52%) of employers say they will focus on encouraging workers to take greater accountability for their retirement savings in the year ahead, with 44% focusing on helping workers retire with enough money and 60% putting greater emphasis on promoting available resources. Employers plan to continue to adding automatic features and expanding savings choices.