Nevin's Data "Points"

I have always taken seriously the notion that news and information should be presented “straight”, and without commentary. But there are times when it’s hard not to just scratch your head and say “huh?” or laugh out loud at some of the stuff that comes across our news desk. Here’s a (somewhat cynical) sampling from just the past couple of weeks: CONFIDENCE MIEN? A nationwide survey by Citi and conducted by Hart Research Associates found that 44% of investors report being confident in their ability to retire in financial security as they had planned ( said another way, that’s nearly half who DO feel that confident ) . More than a third (36%) said they might need to adjust their plans ( so, do two-thirds not see any need to do so? ), and ( a mere ) 16% said they are not confident in their ability to retire in financial security. Must be a lot of rich uncles out there… MORE “NOTHING” DOING. Throughout one of the most stressful and volatile markets in memory, the vast majority of ...

Having been born in the Midwest, lived a quarter of my life in the South, and now another sixth in the Northeast, I can tell you—people are different. However, having worked for huge firms and considerably smaller ones, I can also tell you that, when people come together in groups, they are not as different as you might think (or hope, as the case may be). There is a “common wisdom” in our business that suggests that all plan sponsors are, more or less, alike; that large plans are the inevitable early adopters of trends that, sooner or later, trickle down to plans of all sizes. Consequently, those who make their living trying to discern trends and patterns frequently focus on the behaviors in evidence at larger programs—figuring that, in three years or so, those same characteristics will emerge across the spectrum. There’s some logic to that perspective, IMHO. Plan fiduciaries frequently draw comfort and solace from the experience of others, and smaller programs can hardly be faulte...

Change is a reality of life. Establishing and maintaining benefit programs that are competitive and distinctive requires an awareness of trends in the marketplace, in the population, in the legislative and regulatory worlds, and in the needs of the workers that your plan sponsor clients hope to attract and retain. While product development and enhancements can certainly play a role, there are also the overarching issues that drive and shape those developments. Here are 10 of which you should be aware. Sandwich “Spread”? Much has been written about the impact of the retirement of the Baby Boomers, the so-called Silver Tsunami. Every day, hundreds—even thousands—in that generational bloc do indeed leave the ranks of the employed, though not always by choice. Still, many are staying—or making plans to stay—longer than they might have chosen in less-stressful times. Indeed, the Boomers increasingly find themselves with a new labeling—the “sandwich” generation—in which they are not only...

About two months ago, the Department of Labor asked the public for some insights on retirement income via a request for information, or RFI. The RFI sought input on what it termed a “broad range” of topics, including the pros and cons of distributing benefits as a lifestream of income, why lump sums are chosen more often, what kind of information participants need to make informed decisions on retirement income products, their ideas about participant disclosures of retirement income, and developments in the marketplace (1) . The comment period is just about two months old now, and with 30 days left, I thought it might be interesting to see what kinds of comments have come in (the Labor Department posts these comments on their Web site (2) ). The good news—nearly 500 comments! The not-so-good news—as broad as the DoL’s scope of inquiry was, very few of the comments really seemed to be on point. Now, in point of fact, I saw very few comments (yet) from providers, industry organizations...