Issues around retirement income planning are the most obvious. The traditional “three-legged stool” of retirement income planning—Social Security, pension income benefit, and income from personal savings and investments—is increasingly unsteady. Social Security faces a funding crisis in the first half of the twenty-first century because soon there may not be enough workers paying into the system to support those receiving its benefits. Social Security income lifts more than one in three older persons out of poverty—more than 60% of them women. It is by far the single most important contributor to financial security in old age in America. (more…)

Early Retirement Incentive Plans extend the benefits offered to workers or give additional financial inducements that motivate employees to retire prior to the age or time they otherwise would retire. Early retirement incentive plans first appeared on the employee benefit landscape in the late 1970s and early 1980s. The nation was struggling with “stagflation,” and many firms sought to reduce their labor costs without resorting to layoffs. At the same time, the long-term trend toward earlier retirements was proceeding unabated. Many workers expressed a desire to enjoy the “leisure” that could be secured through the early retirement provisions of many companies’ defined benefit plans. (more…)

If we look at defined benefit plans, it has a slumped down popularity among business owner in recent years. It is more like traditional pension plans where the plans are altogether financed by the employer. Annual contributions founded on actuarial computations involving employer’s years of service and salary are set aside for employees. (more…)

Defined benefit pension plans are retirement plans that are largely funded by employers and benefits are based on employee years of service, employee age and earnings. This type of pension plan has been declining in popularity, largely because the risk is mostly borne by the employer rather than the employee.

Contributions are largely made by the employer – for some employees this is definitely a pro, since the employer determines how much of a contribution is made and there are no caps on the total amount an employer can make to the plan annually. (more…)

Some early retirement survey focused almost exclusively on men when making retirement decision. Until recently, woman may have some decisiveness which affected retirement decision for her and her husband. Recognition of the difference point of view add some complexity on making retirement decision. Off course, the retirement decision is varied beyond gender and economic issues. Substantial differences in health condition, employment market, family finance situation, and care giving responsibility can lead to the differences timing of retirement. (more…)