Deals & People May 24, 2012

MassMutual Retirement Adds to Relationship Management Team

 

The Retirement Services Division promoted Kevin Reilly to relationship manager and hired Thomas Nawrocki as senior relationship manager.

 

 

Reported by

Reilly was promoted to relationship manager effective April 2. He is responsible for managing the division’s midmarket retirement plan business across Ohio, Michigan and Western Pennsylvania as part of the Northeast region management team. He brings more than 14 years of financial services experience and most recently was relationship manager with the division’s First Mercantile Trust Company branch in Memphis, Tennessee. Reilly reports to M. Palmer Whitney, assistant vice president for the Retirement Services Division.

Nawrocki joined MassMutual as senior relationship manager effective March 26. He is on the west region client management team in Los Angeles and reports to Harold Oberg, assistant vice president for the division. Nawrocki brings more than 15 years experience in financial services and is responsible for managing midmarket customers in Southern California. He was most recently at ING, where he was managing director of distribution.

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The sales and client relationship management division is led by Hugh O’Toole.

 

Data & Research May 24, 2012

Few Plan for Health Care Costs in Retirement

Knowledge about retiree health care expenses is minimal, but concern about it is growing.
Reported by

Health care is likely to be the biggest expense in retirement and tops the list of Baby Boomers’ worries, yet not many people are taking action, Robert Reynolds, president and chief executive of Putnam Investments, said during the company’s forum “Health, Wealth and the Future of Retirement.”

“For all the talk and worry about health care, we have seen very little by way of solutions or even baseline guidance beyond macro-estimates of lifetime costs, which leave many people frozen with fear,” he said. “It makes no sense at all to talk about retirement savings or lifetime income provision without expressing the numbers in a monthly context and factoring in health care expenses.”

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Putnam provided a preview of a tool to be launched this fall—personalized monthly health care cost projections—being incorporated into its Lifetime Income Analysis Tool, which helps workers model how much monthly income their savings might generate in retirement and determine whether they are on track to maintain their current lifestyle after they stop working.

Research by Brightwork Partners LLC found that only 12% of respondents who have a formal written plan for retirement have factored in health care costs not expected to be covered by insurance.

 

(Cont...)

The research also found that 14% of respondents were “very interested” in a health care planning tool, 46% were “somewhat interested,” 24% were “not very interested” and 17% were “not at all interested.” Thirty percent of survey respondents with investible assets of $1 million or greater were interested in a health care planning tool, while only 5% of those with no investible assets were interested.

Many variables determine the amount of savings needed in retirement for medical bills, one of which is an individual’s state of health. Van Harlow, Putnam’s director of investment retirement solutions, said the recommended health care savings in retirement for a 65-year-old man in excellent health is $168,900, whereas the recommended health care savings for an individual who has ever had cancer is $112,500 and $99,400 for an individual with diabetes. The higher costs associated with certain health states, like cancer or diabetes, are often offset by shorter life expectancies, Harlow said.

 

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