401(k) Specialist Issue 1 - 2015 - 11

401(k) NEWS YOU CAN USE
Americans Lack
Distribution Plans for
Retirement Savings:
Survey
ACCUMULATION IS SO YESTERDAY; now it's all about distribution
planning, or should be, according to Pentegra Retirement Services.
A new survey from the plan provider showed several surprising
results, particularly when it comes to people's lack of planning for
drawing on their retirement savings. The results include:
* The average age when working Americans plan to retire is 66,
with one in five not planning to retire at all.
* On average, working Americans who plan to retire think they
will need $3,200 per month to live on when they retire.
* The average age when people want to start receiving their
social security benefits is 67.
* More than half (56%) of those with retirement savings have
no distribution plan for how they will access and stretch their
money once they retire, with one in five not giving this any
thought at all.
" The retirement industry has
spent the last 20 years advising
people how to accumulate retirement
savings and reach a magic
number, " Rich Rausser, senior
vice president of client services
at Pentegra Retirement Services,
said in a statement. " Many may
not ever be able to reach that
goal, and we must shift some
of the focus to helping educate
people on what to do with their
savings when they retire. "
The survey revealed that when
thinking about their financial future, those who plan to retire think
they will need approximately $3,200 per month when they retire.
Nearly one in five (19%) say they will need at least $5,000.
" Based on the average household income of $52,000, this number
may seem practical at first glance, but many people do not
factor in having to pay for health coverage and cost-ofliving
increases when estimating how much they will
realistically need, " Rausser added.
ONLINE
EXTRA
The Benefits of
a 'Golden Girls'
Retirement Plan
AND MAYBE M*A*S*H can help
with your medical questions ...
Certified Financial Planner
David Rae, who specializes in
retirement planning for the
LGBT community, has little fun
in the Huffington Post with a
Golden Girls retirement premise.
Much like identifying the Sex
and the City character someone
might most-closely resemble,
Rae uses the iconic 1980s sitcom
in a similar vein for income
planning.
" So, which Golden Girl do you
most represent financially? " he asks the reader.
Sophia: (Estelle Getty) seemed to be in the best shape
financially of the four Ladies, who lived off a pension and Social
Security, while her daughter, Dorothy, had to sacrifice some of her
own spending to subsidize her mother, Sophia.
Dorothy: (Bea Arthur) was the divorced, substitute teacher
who kept working to make ends meet while she dealt with her
mother (Sophia) who lived with her. You may recall she even had a
cross-dressing brother.
Blanche: (Rue McClanahan) quite arguably known as everyone's
favorite " Popular " Golden Girl. Her husband passed away,
and renting rooms in her house was a necessity to maintain her
standard of living. In addition, she " slaved to the bone 12 hours
a week " at her job to make ends meet. Don't forget she had a gay
brother.
Rose: (Betty White) was retired, from St. Olaf and moved to
Florida when her husband passed away. Money was tight; the
company that provided her pension went bankrupt which left her
worried about becoming an old bag lady.
" I'm going to assume very few of you reading this are widowed
60-something grandmothers, but all the same I'm sure many of us
will face similar challenges when it comes to retirement, " he concludes.
" I love the idea of spending my golden years surrounded
by friends and family, but I'd prefer this type of living arrangement
was a choice rather than being forced to live with strangers simply
because I couldn't afford to live on my own. "
INAUGURAL 2015 | 401kSpecialistmag.com 11
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401(k) Specialist Issue 1 - 2015

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