Increasing medical costs, rising life expectancy and the shrinking role of defined-benefit pension plans have combined to create an investment period that Prudential Financial has dubbed the Retirement
* Percentage of Stocks for Retirement
: In the U.S., half of all stocks are held to pay for retirements
, and the percentage is increasing.
That's why the White House has endorsed corralling into the system the relatively small number of people whose retirements
are secure outside it.
For example, the Bank Plan requires no employee contributions as FERS does; it uses the highest five years of earnings to compute the pension benefit rather than the highest three years under FERS; and it provides for annuity reductions for retirements
before age sixty, while FERS allows unreduced retirement
below age sixty if the participant has thirty years of service.
1.167(a)-8(b) defines "normal" and "abnormal" retirements
Impact of Retirements
on State Agency Rehabilitation Personnel 1987-1999
He said people today worry more about their financial futures, and they've dug themselves into deep debt that they need to eliminate before actually funding their retirements
An additional benefit of raising the retirement
age would be the increased economic growth that would result from older, more experienced workers' extending their careers and postponing retirements
For more than a decade, a majority of opinion-poll respondents have doubted that they would receive enough benefits from Social Security to finance their retirements
. Over the past four years skepticism about Social Security's future has intensified.
These excessively early retirements
create longer and hence larger payouts to retirees and make it possible for them to layer pension on top of pension in the still-legal variants of "double dipping." No wonder the Grace Commission concluded that "there is probably no other retirement
system which is as liberal and costly as the U.S.
3: to commit to a program of retirement
planning and investing.
A study sponsored by AIG Sun-America, which specializes in retirement
savings and investment products and services, shatters many long-standing, traditional perceptions of retirement
in the U.S.
* ALTHOUGH MOST CPAs HAVE their own personal retirement
accounts, a surprising number of practitioners don't have formal retirement
plans for their businesses.
Already, ballooning retirement
payments are squeezing the very programs for which the government was established in the first place.
There are a large number of theories about the effects of retirement