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By The Numbers

Educators could use more of their own medicine in retirement approach

Posted February 5, 2010 by at 10:53AM. Comments (0)

Those who make a living educating others to think analytically and learn lessons from history aren’t exactly taking a page from their own book when it comes to retirement strategy, according to a recent ING Web-based survey.

Of the higher education community employees at colleges, universities and post-secondary schools across the U.S., 40% have never changed their retirement plan investment mix and 28% have not made any adjustments in the past year. Additionally, of those respondents to the October 2009 poll who have never sought advice from a financial professional, only about one-quarter (26%) are considering doing so.

The majority (62%) of all respondents — who varied in age, sex, salary and job function — report less confidence about living comfortably after retirement than they had before the 2008 downturn, however, 63% have no plans to delay their retirement to compensate.

Similar numbers show that abut two-thirds (64%) have calculated their retirement income needs at some point in life, but as many as 30% had not done so in the past year and more than one-third (36%) have never calculated those needs.

“This study demonstrates that more can be done to help higher education employees better understand how to prepare for and reach their retirement goals,” says Brian Comer, president of Public Markets for ING U.S. Retirement Services. “Like many others in the workforce, a considerable number of education employees may require more guidance than they realize to assess retirement income needs, put a  plan together and adjust their strategy to manage lifestyle and market changes. Working with a trusted professional can help employees become better educated to make decisions and improve their chances of achieving a successful outcome.”

However, a majority of those age 55 and older (55%) did report seeking professional retirement advice. To better manage their retirement strategy, many respondents would welcome aid from plan providers offering more advice, information and proactive communication, according to the survey.

“This is a trend in the right direction,” Comer adds. “But it raises the question of whether their outcome could be better by getting advice at a younger age.”

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Welcome to By the Numbers, produced by Employee Benefit News and Employee Benefit Adviser. As an electronic extension of the popular, long-running feature in our print publication, By the Numbers provides a compilation of key data points around current conditions, and trends, in health care, retirement plans, work-life benefits and the high-growth area of voluntary benefits.

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