Data & Research June 18, 2009

Decline in 401(k) Accounts Lead to Delayed Retirements

A Watson Wyatt survey found that a third (34%) of workers have increased their planned retirement age in the last 12 months.
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Forty-four percent of those age 50 and over plan to delay their retirement, compared to only 25% of those under 40, according to a Watson Wyatt press release. Although the average planned retirement age for all employees is 65 years old, half of respondents age 50 or older plan to retire at age 66 or later.

Three-quarters (76%) of older workers (age 50 to 64) cited the decline in the value of their 401(k) accounts as the top reason they are planning to postpone their retirement, followed by the high cost of health care (63%) and higher prices for basic necessities (62%). Of this group, more than half (54%) also indicated they will work for at least three years longer than previously expected.

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The survey also found that workers who participate in a defined contribution (DC)-only plan are more likely to delay retirement than those with a defined benefit (DB) plan, the press release said. Only approximately a quarter (26%) of respondents with DC plans plan to retire before the age of 65, compared to 41% of those with DB plans.

The Watson Wyatt survey was conducted in February and includes responses from more than 2,200 full-time workers.

More information is available at www.watsonwyatt.com/retirement-timing.

Deals & People June 18, 2009

Hart to Develop ExpertPlan TPA Client Base

ExpertPlan, provider of defined contribution plan recordkeeping solutions, announced it has hired Steven Hart as vice president, Sales and Business Development.
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According to an announcement, Hart’s focus will be on developing the third-party administrator (TPA) client base that was supported by the ADP service center in Overland Park, Kansas, prior to ExpertPlan’s purchase of the division June 12. He will be responsible for growing and retaining clients, building ExpertPlan’s national TPA network, and providing the company’s current TPAs with enhanced marketing and product development initiatives.

Hart is a current board member and the former president of the National Institute of Pension Administrators (NIPA) and has held sales and management positions with John Hancock, Prudential Retirement, ADP, and Scudder Investments, the announcement said.

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“Steve brings extensive knowledge and experience working in the TPA marketplace,” said John Farmakis, EVP Sales, Marketing, and Business Development, in the announcement. “He will be a vital member of the ExpertPlan team and help the company build upon our current and future product service offerings.”

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