Data & Research August 31, 2015

Pre-Retirees Comfortable with Automatic Savings

However, 46% say it is difficult to save any additional funds.
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Pre-retirees between the ages of 50 and 62 say they are very comfortable with automatic deposits to their 401(k), mortgage or permanent life insurance, a New York Life survey found.

Nearly two-thirds (64%) say that automatic saving gives them more confidence heading into retirement than other forms of savings. However, nearly half, 46% say it is difficult for them to save anything above what is being automatically routed to their 401(k) due to the financial demands they are facing. Forty-five percent wish more automatic savings vehicles were offered.

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On average, pre-retirees began saving for retirement at age 34, but they wish they had started eight years earlier, at age 26. Twenty-five percent wish they had started saving 10 years earlier.

“This is a wake-up call to younger generations: Gen X, Gen Y and even Gen Z,” says Chris Blunt, president of New York Life’s investments group. Pre-retirees sit in an important vantage point. They are in a position to share what has worked well for them as they inch toward retirement. These 50- and early 60-year-olds wish they had started a serious savings plan in their 20s. Finding ways to put savings on auto-pilot is key to that plan. There is still time for earlier generations to react to these two pieces of advice.”

NEXT: Men’s versus women’s feelings about automatic savings

The survey also found that 58% of pre-retirees with children living at home say it is hard to save anything above and beyond their automatic savings vehicles. And pre-retirees with children living at home wish there were more automatic savings vehicles available, with 58% of this group expressing this wish compared to 45% of all pre-retirees.

Men are more confident in their automatic savings, with 68% of men expressing this assurance, compared to 59% of women. There are also very high levels of confidence in various automatic savings vehicles: ninety-three percent are confident in their 401(k) direct deposit. Eighty-one percent are confident in the direct deposit to their college savings plan. Seventy-nine percent are confident in the direct deposit to their mortgage, and 78% are confident in the direct deposit to their permanent life insurance policy.

“These savings vehicles often fly under the radar, but are kind of a big deal,” Blunt says. “The ease and recurring nature of these savings vehicles make them highly effective tools for helping clients to achieve their financial goals.”

Ipsos Public Affairs conducted the survey for New York Life in late July among 906 adults between the ages of 50 and 62 with a household income of at least $80,000.

Deals & People August 28, 2015

Retirement Industry People Moves

New hires and promotions at Prudential Retirement, Northern Trust, Commonwealth Financial Network and more.
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Snezana Zlatar has joined Prudential Retirement as senior vice president and head of product for total retirement solutions. Zlatar, who has more than 20 years of experience in product and distribution management, business strategy, business analysis, performance measurement, risk management, and platform and business model innovation, was previously managing director in the global wealth and investment management division at Bank of America Merrill Lynch.

In her new role, she will be responsible for the product development, product management and pricing, request for proposal (RFP) and underwriting teams.

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Zlatar reports to Jamie McInnes, head of Total Retirement Solutions, who cited her leadership skills and experience as valuable factors that will help in the firm’s product positioning and market leadership in the retirement industry.  She will be based in Prudential’s office in Woodbridge, New Jersey. Her appointment became effective August 24.

Prudential Retirement is a business unit of Prudential Financial Inc.

NEXT: Northern Trust adds to defined contribution unit.

Sabrina Bailey has joined Northern Trust Asset Management as global head of defined contribution, a new position created to strengthen Northern Trust’s strategic focus on its growing retirement solutions business.

Bailey, who has 15 years of experience, comes to Northern Trust from Mercer Investment Consulting in Seattle. As head of the U.S. defined contribution segment, she was responsible for the deployment of innovative solutions and intellectual capital, provided investment consulting services to some of the firm’s largest retirement plan clients, and led internal strategy, research and client service committees. Before joining Mercer, Bailey held senior consulting, client service and management roles at Towers Watson and two other firms. She holds a bachelor’s degree as well as a master’s degree in business administration from George Fox University in Newberg, Oregon.

Northern Trust also hired Gaobo Pang as senior behavioral finance specialist on the defined contribution solutions team. A recognized conference speaker and academic practitioner, Pang is known for his work at the consultant Towers Watson and at the World Bank.

Pang’s work for Towers Watson and the World Bank includes macroeconomic and policy research, statistical and econometric analysis of workers’ labor behavior, savings adequacy and investment choices, and developing and evaluating optimal strategies, particularly about qualified default investment alternatives and retirement income solutions. He has published extensively in periodicals including the “Journal of Retirement,” “Journal of Pension Economics and Finance” and “Financial Analysts Journal.”

Pang holds a bachelor’s degree in international economics from Fudan University in Shanghai, master’s degrees from Tsingua University in Beijing  and the University of Maryland, and a Ph.D. in economics from the University of Maryland, College Park.

Stephen N. Potter, president of Northern Trust Asset Management, cited Bailey’s strong, experienced voice as an aid to the firm’s expansion of its defined contribution practice as it develops new products and builds assets under management. Pang’s expertise, he said, would be critical in helping the firm understand investor behavior in order to translate that knowledge into innovative solutions for DC plan sponsors.

Internally, Brian Bursua, who has been with Northern Trust since 2008, has joined the firm’s DC solutions group. He was previously an investment relationship manager/account manager, and prior to that, Bursua was in client services. He holds a bachelor’s degree in management from Southern Illinois University, Carbondale. Patrick Gaskin, who has been with Northern Trust for three years, has  joined the firm’s DC solutions group. Previously, he was with Deutsche Bank. Gaskin holds a bachelor’s degree from the University of Illinois at Urbana-Champaign. These moves, in sales and service, are intended to further align resources and provide focus in serving the recordkeeper channel.

NEXT: Vaughn Wealth joins Commonwealth Financial Network.

Commonwealth Financial Network, a privately held independent broker/dealer and registered investment adviser (RIA), has added Vaughn Wealth of Orlando, Florida, to its network of independent financial advisers. Formerly affiliated with NFP Advisor Services, T. Kevin Taylor and S. Kyle Taylor, along with their team, bring with them $175 million in client assets.

Vaughn Wealth works with businesses and professional firms in Central Florida, offering wealth management solutions including corporate retirement plans, complex benefit strategies, family estate planning and investment solutions.

Andrew Daniels, managing principal in business development at Commonwealth, cited the Taylors’ partnership and diverse background as factors that distinguish them in the industry.

NEXT: Wisconsin Bank adds benefits and retirement VP. 

Chad Heath joins Associated Bank in Green Bay, Wisconsin, as vice president and senior client adviser with associated private client and institutional services. He is responsible for assisting businesses in the areas of employee benefit and retirement plans, risk management and human resources. Heath collaborates with a company’s leadership team to understand their key areas of concern, and assembles a team of experts to develop a customized plan focused on delivering results.

Heath brings to Associated more than 15 years’ experience in insurance and financial services. Previously, he worked as a risk management professional specializing in entrepreneurial risks and professional liability. He also spent seven years operating his own independent insurance agency.

Heath holds the Certified Insurance Counselor (CIC) designation, as well as property and casualty, and life and health insurance licenses.

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