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October 27, 2009 at 08:00 PM
Some retirement savers may be in a lot better shape than others.
Several organizations have released results from retirement surveys and plan analyses in the past few days. One paints a grim picture, one suggests that hospital plans may be faring well, and a third suggests 401(k) plan participants may be starting to recover from the effects of the economic crisis.
Several organizations have released results from retirement surveys and plan analyses in the past few days. One paints a grim picture, one suggests that hospital plans may be faring well, and a third suggests 401(k) plan participants may be starting to recover from the effects of the economic crisis.
Nationwide Mutual Insurance Company, Columbus, Ohio, and the Center for Retirement Research at Boston College, a think tank that Nationwide helps sponsor, found that many consumers now appear to be too broke and too scared to think much about retirement.
The percentage of Americans who seem to be unprepared financially to retire at age 65 has increased to 51%, from 44% in 2007, according to the Center for Retirement Research.
Nationwide says its own, proprietary surveys of 1,143 U.S. adults show that the percentage of workers who agree with the statement that creating a retirement income source is important has dropped 60% over the past 2 years, and that the percentage who say they would seek advice before making investment decisions has dropped 25%.
A big retirement plan administrator, Diversified Investment Advisors Inc., Purchase, N.Y., worked with the American Hospital Association, Washington, to look at the state of the 403(b) defined contribution plans at hospitals and other large health care employers.
Although the 403(b) plans have undergone major regulatory changes in the past few years, and the percentage of 403(b) plan sponsors that offer traditional defined benefit pension plans plunged to 39% this year, from 51% in 2008, the 403(b) plans seem to be doing reasonably well, according to Diversified figures.
