Press Releases

20 de julio, 2010

Americanos por un Retiro Seguro elogia a miembros y líderes de LULAC por su labor en asuntoscríticos sobre jubilación

WASHINGTON, DC - En su 81ra Convención Nacional, la Liga de Ciudadanos Latinoamericanos Unidos (LULAC), la organización hispana más grande y antigua en los Estados Unidos, tomó una postura firme en un asunto crítico para la comunidad hispana que muchas veces pasa por desapercibido – la política de jubilación que ayuda a todos los ciudadanos norteamericanos a administrar mejorar sus ahorros para generar ingresos que perduren toda una vida.

Específicamente, la organización hizo un llamado a que los legisladores presten atención a la inminente crisis sobre jubilación aprobando una resolución que aboga por una política de jubilación que maximiza la seguridad en el retiro al facilitar el acceso de los estadounidenses a fuentes de ingresos garantizados de por vida. Además, la resolución explica que los hispanos son un segmento de la población en mayor riesgo de no tener recursos suficientes para sus años de jubilación.

Americanos por un Retiro Seguro (ASR), una coalición que aboga por los asuntos de jubilación, elogió las acciones de LULAC para concientizar al público sobre los retos significativos que enfrentan los hispanos en el retiro, y alabó el compromiso de la organización con asegurar un mayor acceso a los ingresos de jubilación garantizados durante el retiro. LULAC es una organización miembro de la coalición ASR.

“La importancia de esta resolución no puede ser subestimada. LULAC es una de las organizaciones de abogacía más antiguas e influyentes de la nación, y estamos muy contentos de tenerlos como socios en nuestros esfuerzos para conseguir la atención de los legisladores en torno a este tema”, dijo Thomas Bartell, Presidente de ASR.

La comunidad hispana se ve desproporcionadamente afectada cuando se trata de la vulnerabilidad en la seguridad de la jubilación. Mientras los hispanos trabajan en todos los sectores de la economía, la gran mayoría de ellos trabaja en posiciones que carecen de las opciones tradicionales de jubilación y suelen ganar un sueldo más bajo, afectando su capacidad de ahorro para la jubilación. Para ésta y otras poblaciones, la anualización de la totalidad o parte de los activos de jubilación es el único método que puede proporcionar a los norteamericanos un flujo de ingresos garantizados de por vida a lo largo de la jubilación. Este “cheque de por vida” asegura que los ingresos perduren hasta la muerte.

Las investigaciones confirman que existe un problema creciente. Un estudio reciente realizado conjuntamente por el Instituto Hispano y ASR encontró que sólo el 25,6 por ciento de los hispanos está cubierto por los planes de pensión, en comparación con el 42,5 por ciento de los anglosajones y 40 por ciento de los afroamericanos. La resolución reconoce que mientras las fuentes tradicionales de ingresos de jubilación no serán suficientes para muchos norteamericanos, los desafíos que enfrentan los hispanos en el mantenimiento de su nivel de vida durante el retiro los hace especialmente vulnerables.

“La evidencia indica claramente que los hispanos enfrentan retos adicionales en prepararse para la jubilación en comparación con la mayoría de la población”, dijo Brent Wilkes, Director Ejecutivo de LULAC. “Una gran mayoría de la población hispana está empleada en sectores que generalmente no ofrecen planes de jubilación patrocinados por el empleador, dejando a muchos hispanos que trabajan duro sin los recursos necesarios para jubilarse. La aprobación de esta resolución es un reconocimiento del problema, y esperamos que se transmita un mensaje claro al Congreso y a la Administración sobre la necesidad de aumentar el acceso a los vehículos de retiro que garantizan los ingresos de por vida”.

Presentada por Elsie Valdés de LULAC Puerto Rico, la medida fue aprobada en el Centro de Convenciones de Albuquerque el sábado, 18 de julio. A través de la resolución, los delegados de LULAC resolvieron:

• Reconocer la necesidad de apoyar las políticas de jubilación que facilitan a los norteamericanos el que tengan fuentes de ingresos garantizados de por vida que les ayuda a administrar mejor sus ahorros de jubilación.
• Reconocer la necesidad de que el Congreso de los Estados Unidos actúe ahora para asegurar la jubilación de los primeros 77 millones de “baby boomers” que comienzan a jubilarse pronto.
• Apoyar la aprobación de S. 1297, la ley de la Seguridad de Jubilación de por Vida, en el Senado y HR 2748, la ley de la Necesidad de Seguridad de Jubilación de por Vida, en la Cámara de Representantes, que ayudará a los norteamericanos a asegurar un flujo constante de ingresos durante la jubilación para que su nivel de vida no disminuya.

Sobre ASR
Americanos por un Retiro Seguro es una coalición de más de 70 organizaciones y afiliados dedicados a crear conciencia sobre el problema de jubilación y trabajar con legisladores para encontrar soluciones que ayuden a la población a tener un mayor control financiero en su jubilación. Nuestros miembros son un grupo diverso que representan a mujeres, minorías, campesinos, propietarios de pequeñas empresas y a la industria de seguros de vida. Para obtener más información sobre ASR, visite www.paycheckforlife.org.

Sobre LULAC
La Liga de Ciudadanos Latinoamericanos Unidos es la organización de miembros latinos de derechos civiles más grande y antigua en los Estados Unidos. Trabaja para mejorar las condiciones económicas, de educación, influencia política, vivienda, salud y los derechos civiles de los hispanos a través de programas comunitarios que operan en más de 700 consejos de LULAC en todo el país. Para una copia de la resolución en su totalidad, por favor escriba a Lindsay@paycheckforlife.org.

July 20, 2010

Americans for Secure Retirement praises LULAC’s members, leadership for work on critical retirement issue

WASHINGTON, DC – At its 81st National Convention, the League of United Latin American Citizens (LULAC), the largest and oldest Hispanic organization in the United States, took a strong stance on a critical yet overlooked concern of the Hispanic community – retirement policy that helps all Americans better manage their savings to provide income that will last a lifetime.

Specifically, the organization called policymaker attention to the looming retirement crisis by approving a resolution calling for retirement policy that maximizes retirement security by making it easier for Americans to access guaranteed lifetime income sources. In addition, the resolution explained that Hispanics are a segment of the population at increased risk of not having sufficient resources for their retirement years.

Americans for Secure Retirement (ASR), a retirement issues advocacy coalition, lauded LULAC’s action as important in raising awareness of the significant challenges Hispanics face in retirement, and praised the organization’s commitment to ensuring increased access to guaranteed retirement income in retirement. LULAC is an ASR coalition member.

“The importance of this resolution cannot be underestimated. LULAC is one of the oldest and most influential advocacy organizations in the nation, and we are pleased to have them as partners in our quest to galvanize
policymaker attention around this issue.” said Thomas Bartell, ASR Chairman.

The Hispanic community is hit disproportionately hard when it comes to retirement security vulnerability. While Hispanics work in all sectors of the economy, they are more heavily concentrated in jobs that lack traditional retirement options and typically earn a lower income, affecting their ability to save for retirement. For this and other populations, the annuitization of all or a portion of retirement assets is the only method that can provide Americans with a guaranteed stream of lifetime income throughout retirement. This “paycheck for life” ensures that income will not be outlived.

Research confirms this growing problem. A recent study conducted by The Hispanic Institute and ASR found that only 25.6 percent of Hispanics are covered by pension plans, compared to 42.5 percent of whites and 40
percent of African-Americans. The resolution acknowledges that while traditional sources of retirement income will not be sufficient for many Americans, the challenges faced by Hispanics in maintaining their
standard of living make them particularly vulnerable.

“The evidence clearly indicates that Hispanics face additional challenges in preparing for retirement compared to the greater population,” said Brent Wilkes, Executive Director of LULAC. “A majority of Hispanics are employed in fields which generally do not offer employer-sponsored retirement plans, leaving many hard working Hispanic Americans without the resources to retire. The passage of this resolution is a firm acknowledgment of the problem, and we hope will send a clear message to Congress and the Administration about the need to increase access to retirement vehicles that ensure income for life.”

Introduced by Elsie Valdés from LULAC Puerto Rico, the measure was passed at Convention Center in Albuquerque on Saturday, July 18. Through the resolution, LULAC’s delegates resolved to:

• Acknowledge the need to support retirement policy that makes it easier for Americans to have guaranteed lifetime income sources that help them better manage their savings in retirement.
• Acknowledge the need for the U.S. Congress to act now to ensure secure retirement as the first of the 77 million baby boomers begin to retire soon.
• Support passing S. 1297, the Retirement Security for Life Act introduced in the Senate and H.R. 2748, the Retirement Security Needs Lifetime Pay Act introduced in the House, which will help Americans secure a steady stream

About ASR
Americans for Secure Retirement is a broad‐based coalition of more than 70 organizations and affiliates committed to raising awareness of the retirement problem and working with policymakers to find solutions that will help people have greater financial control over their retirement. Our members are a diverse group representing women, minorities, farmers, small business owners and the life insurance industry. You can learn
more about ASR at www.paycheckforlife.org.

About LULAC
The League of the United Latin American Citizens is the largest and oldest member based Latino civil rights organization in the United States. It advances the economic conditions, educational attainment, political influence, housing health and civil rights of Hispanic Americans through community-based programs operating at more than 700 LULAC councils nationwide.

For full text of the resolution, please email Lindsay@paycheckforlife.org

June 16, 2010

Coalition partners submit testimony on importance of a paycheck for life

WASHINGTON, DC – Today, leading members of Americans for Secure Retirement (ASR), a retirement issues advocacy coalition, called on the United States Senate Special Committee on Aging to give more Americans access to vehicles providing guaranteed lifetime income in retirement. This comes as the Committee holds a hearing on “Turning Retirement Savings into Lifetime Income,” discussing policy solutions to help Americans plan and save for their retirement. Various ASR partners have submitted testimony for the record, including Chairman Thomas Bartell.

ASR praised the Committee and its Chairman, Senator Herb Kohl, for holding the hearing and acknowledging the importance of retirement security. In his testimony, Bartell explained that certain populations face more difficulty in retirement, generally having less access to, and lower participation rates in, employer‐based retirement plans.

“A central challenge for policymakers is the need to make retirement options that provide steady, lifetime benefits more accessible to Americans,” said Mr. Bartell. “It is also important to ensure these opportunities reach the populations, particularly women, small business owners, farmers and minority groups, that have the least access to employer based retirement programs, or get the least from these and Social Security,” he added.

Bartell encouraged the committee members to consider new avenues to give more Americans access to vehicles that will provide guaranteed income in retirement. These include the Retirement Security for Life Act, S. 1297, introduced by Senators Kent Conrad (D‐ND) and Pat Roberts (R‐KS) as well as H.R 2748, the Retirement Security Needs for Life Act, introduced by Representatives Earl Pomeroy (D‐ND) and Ginny Brown‐Waite (R‐FL). In addition to advocating for S. 1297 and H.R. 2748, earlier this year, members of the ASR coalition weighed in with public comments to an Obama Administration proposal that would encourage annuitization of defined contribution retirement plans as a way to provide American retirees with a guaranteed stream of income in retirement.

The challenge to have a financially secure retirement was described in stark terms last year in a study conducted by Ernst & Young and commissioned by ASR which found that the average recently retired married couple, without any guaranteed source of retirement income, is left with only a 6 percent chance of financial success (not outliving their savings) in retirement. The study also determined that many Americans will be forced to reduce their standard of living, some by as much as 51 percent, to avoid outliving their financial assets. However, that study also found that retirees with a source of guaranteed lifetime income, such as a defined benefit plan or an annuity, are much better prepared for retirement.

In addition to Bartell, other ASR member organizations have submitted testimony to the committee. These include groups representing women, Hispanic Americans, and America’s farmers. The full text of all the testimony can be found at www.paycheckforlife.org.

To read these testimonies please click on the following links:

Farmer Advocacy Groups Testimony, Women Advocacy Groups Testimony,  Hispanic Advocacy Groups Testimony, and Statement by Thomas Bartell

About ASR

Americans for Secure Retirement is a broad‐based coalition of more than 70 organizations and affiliates committed to raising awareness of the retirement problem and working with policy makers to find solutions that will help people have greater financial control over their retirement. Our members are a diverse group representing women, minorities, farmers, small business owners and the life insurance industry. You can learn more about ASR at www.paycheckforlife.org.

January 28, 2010

WASHINGTON, DC – Americans for Secure Retirement (ASR), a retirement issues advocacy coalition, released the following statement in response to President Obama’s announced initiatives to help middle income Americans achieve a financially secure retirement. This statement can be attributed to ASR’s Chairman, Thomas Bartell.

“We applaud the initiatives proposed by the Obama Administration to ease the burden on middle income Americans by helping them achieve a financially secure retirement. Over the last two years, we have all witnessed the dramatic and immediate effect a downturn in the economy can have on middle income retirees and near retirees.

“ASR is especially encouraged by the Administration’s stated commitment to increasing the availability of guaranteed lifetime income through annuities. A steady stream of income in retirement reduces the risks that retirees will outlive their savings or face significant reductions to their standard of living. An ASR commissioned study conducted by Ernst & Young last year revealed the profound risks that a majority of Americans face in outliving their retirement savings and how guaranteed lifetime income in retirement dramatically improves the situation (http://tinyurl.com/yaxkjpm). The past two years have been incredibly challenging for retirees and those about to retire as the value of retirement assets have eroded due to the financial downturn. Now is the time for policy changes that not only promote retirement savings, but also help Americans better manage those savings to last a lifetime.”

About ASR

Americans for Secure Retirement is a broad-based coalition of more than 70 organizations and affiliates committed to raising awareness of the retirement problem and
working with policy makers to find solutions that will help people have greater financial control over their retirement. Our members are a diverse group representing women, minorities, farmers, small business owners and the life insurance industry. You can learn more about ASR at www.paycheckforlife.org.

October 8, 2009

WASHINGTON, DC – A new report released today demonstrates that Hispanic Americans face greater challenges in obtaining a secure retirement than the average population. The paper, prepared by the Hispanic Institute think-tank and the Americans for Secure Retirement (ASR) coalition, finds that the unique challenges include a general lack of retirement preparation, less access to employer-sponsored retirement plans, lower levels of personal savings and inadequate financial literacy.

The report concludes that Hispanic Americans need to consider multiple retirement vehicles to supplement Social Security and to bridge the gap in access to employer plans. Options such as lifetime annuities can minimize financial risks and provide the means to both build retirement savings and secure guaranteed income that will last as long as they live. Access to such a source of guaranteed lifetime income to supplement Social Security is a critical part of planning for a secure retirement.

“While our research found that Hispanics face greater challenges in preparing for retirement than the average population, with the right tools to properly prepare for retirement, these obstacles can be overcome,” said Gus West, Board of Directors Chair for Hispanic Institute.

Significant findings of the study include:

• Only 41 percent of Hispanic workers say they have saved money for retirement.
• Only 25.6 percent of Hispanics are covered by employer-sponsored retirement plans, compared to 42.5 percent of whites and 40 percent of African-Americans.
• Of the Hispanics receiving Social Security benefits, almost 80 percent rely on these benefits for at least 50 percent of their retirement earnings.
• Among people 65 and older receiving Social Security, on average Hispanics receive about $2,124 less in earnings than non-Hispanics.

Between 1979 and 1999, middle-class Hispanics households increased nearly 80 percent. In the same period, the group of Hispanic households earnings between $40,000 to $140,000 grew to include about one-third of the total Hispanic households nationwide.

Today, the U.S. Hispanic population makes up about 48 million people; by 2050 that number will increase to 132 million, accounting for nearly 30 percent of the total U.S. population. Due to the growing Hispanic population, an average longer life expectancy, and because only 16 percent of the population is in their pre-retirement years, Hispanics will make up a significant number of those entering retirement in the future.

“Since two-thirds of Hispanics are employed in the service-related field, which generally does not offer employer-sponsored retirement plans, many hard working Hispanic Americans may not have the proper nest egg to retire. It is imperative that their savings are managed and invested in a secure plan that assures income for life,” said Brent Wilkes, Executive Director of League of United Latin American Citizens.

Legislation currently being considered in Congress would create tax advantages for the purchase of an annuity and the conversion of a portion of an individual’s savings into a lifetime retirement income stream. The Retirement Security Needs Lifetime Pay Act, H.R. 2748, in the U.S. House and the Retirement Security for Life Act, S. 1297, in the U.S. Senate, would create a tax exclude from taxes a portion of the annual income received through an annuity, increasing accessibility to lifetime annuities as a retirement option and creating significant tax savings for middle-income Americans.

“Congress needs to pass this legislation to encourage the greatest accessibility possibility to multiple retirement savings vehicles that tackle the income side of the retirement problem,” said Bill Waldie, Chairman of ASR.

The Hispanic Institute nonprofit organization formed in 2005 to provide an effective education forum for an informed and empowered Hispanic America. Americans for Secure Retirement is a broad-based coalition of more than 50 organizations who are united in their commitment to raise awareness of the retirement challenge facing all Americans.

To view the complete Hispanic and Retirement: Challenges and Opportunities report, please visit www.paycheckforlife.org.

September 17, 2009

To download the 2009 Gallup Survey, go to: http://annuity-insurers.org/annuities.aspx

WASHINGTON – Results from a Gallup survey released today demonstrate that non-qualified annuities contribute significantly to the retirement security of middle-class Americans, and that those who own annuities have great confidence in their financial future even amidst the recent recession and market downturns.

The survey of 1003 annuity owners nationwide, conducted by The Gallup Organization (Gallup) and Mathew Greenwald & Associates (Greenwald) in conjunction with the Committee of Annuity Insurers (CAI), paints an interesting picture of who purchases non-qualified annuities and why:

• Purchased by Middle-Class Americans. Eight out of 10 non-qualified annuity owners (80%) have annual household incomes below $100,000. Only 4% have annual incomes greater than $200,000. Almost half (42%) have annual household incomes below $50,000.
• Improve Retirement Security. Over 90% of non-qualified annuity owners agree that the statement “you have done a very good job of saving for retirement” describes them well. Further, they view their annuities as contributing greatly to this preparedness –

1. Almost 8 in 10 (79%) think that annuities are an important source of retirement security and make them feel more comfortable in times of financial uncertainty.
2. More than 8 in 10 (83%) intend to use their annuities to provide a financial cushion in case they or their spouses live well beyond their life expectancy.
3. More than 8 in 10 (81%) also intend to use their annuities to avoid being a financial burden on their children in their later years.

• Owners are most likely to be older, retired, women. The survey also shows that most non-qualified annuity owners are female (58%) and that the average owner is a retired 70-year-old woman with a moderate income. Most owners (69%) also are retired, which is up from 58% in 2005. Owners’ average age also increased from 66 to 70 between 2005 and 2009.
• Happy with annuity purchase. Owners demonstrate a unique loyalty and commitment to their annuity purchases, with almost all (93%) reporting that they still own their first annuity.

The survey also reflects a striking dichotomy between the American population at large and those who invest in an annuity as part of their retirement planning. While most national polls show a decline in consumer confidence about retirement, more than half of annuity owners (55%) believe that they have enough or more than enough money to cover their financial needs in retirement. This is the tenth survey conducted by Gallup and Greenwald for the CAI since 1992, and the first since 2005.

“This survey demonstrates that these Americans consider their annuities the answer to both sides of the fundamental retirement challenge, a method to accumulate retirement savings and a vehicle to turn their savings into a steady retirement income stream that cannot be outlived,” said Deborah Winston of the CAI.

The Gallup survey reinforces what many policymakers already know – that annuities play a critical role in addressing America’s retirement security problems. In fact, legislation currently being considered in Congress would create tax advantages for the conversion of a portion of an individual’s savings into a lifetime retirement income stream provided through an annuity.

The Retirement Security Needs Lifetime Pay Act, H.R. 2748, in the U.S. House of Representatives, and the Retirement Security for Life Act, S. 1297, in the U.S. Senate, would increase accessibility to lifetime annuities by creating a federal income tax exclusion for a portion of annual annuity income, creating significant tax savings for middle-income Americans.

“These legislative proposals are specific solutions to help middle-income Americans obtain the financial security in retirement that they deserve. The time for Congress to act is now. All Americans should enjoy the same confidence in their retirement future that current annuity owners enjoy,” said Bill Waldie, Chairman of the retirement issues advocacy coalition, Americans for Secure Retirement.

About the Committee of Annuity Insurers

The Committee of Annuity Insurers is a coalition of life insurance companies that was formed in 1982 to address federal legislative and regulatory issues relevant to the annuity industry and to participate in the development of federal tax and securities policies related to annuities. The Committee’s current 30 members include the nation’s largest and most prominent issuers of annuities, representing over two-thirds of the annuity business in the United States.

2009 Gallup Survey of Owners of Non-Qualified Annuities

The Committee of Annuity Insurers has partnered with The Gallup Organization and Mathew Greenwald & Associates to conduct 10 comprehensive surveys of non-qualified annuity owners between 1992 and 2009. The surveys create a unique profile of non-qualified annuity owners and their attitudes toward saving for retirement. The 2009 survey, conducted among 1003 annuity owners across the country, found that non-qualified annuities contribute greatly to the retirement security of middle-class Americans.

Annuity Owners Are Overwhelmingly Middle-Class

• Eight out of 10 non-qualified annuity owners (80%) have annual household incomes below $100,000, and only 4% have annual incomes greater than $200,000.
• In fact, almost half (42%) have annual household incomes below $50,000.

Majority of Annuity Owners Are Women

• Non-qualified annuity owners are more likely to be female (58%) than male (42%). With the exception of the 2001 survey, females have outnumbered males in every survey since 1997.
• The average owner is retired, 70 years old, a woman, and has a moderate income.

Annuity Owners Are an Older and Loyal Group

• Almost all non-qualified annuity owners (93%) report that they still own their first annuity.
• Seven in 10 (69%) are retired, which is up from 58% in 2005.
• The average age of annuity owners increased in 2009 to 70, compared to 66 in 2005.

Annuity Owners View Themselves as Financially Prepared for Retirement

• While many Americans believe that they are not financially prepared for retirement, 91% of non-qualified annuity owners say that the statement “you have done a very good job of saving for retirement” describes them well.
• In that regard, almost 3 in 4 (73%) say that they have set aside more money for retirement than they would have if the tax advantages of annuities were not available. Almost 9 in 10 (88%) say that keeping those advantages is a good way of encouraging long-term savings, and more than 9 in 10 (91%) say that the prospect of paying tax on money withdrawn from their annuities makes them try not to do so before they retire. The latter suggests that the current tax rules successfully encourage them to retain their savings until needed in retirement.

A Safe and Secure Way to Save for Retirement

• Despite the recent market turmoil, which led to a decline in consumer confidence about preparedness for retirement, almost 8 in 10 annuity owners (79%) say that annuities are secure and safe, an important source of retirement security, and make them feel more secure in times of financial uncertainty.
• The vast majority of annuity owners say that annuities are an effective way to save for retirement (86%) and that their annuity was a safe purchase (89%).
• More than 3 in 4 (76%) say that they intend to use their annuities for retirement income. Other intended uses include a financial cushion in case they or their spouses live well
• beyond their life expectancy (83%) or to avoid being a financial burden on their children (81%).
• Almost 9 in 10 (85%) agree that investment and insurance guarantees available in annuities are a very important benefit of the product.

Gallup and Greenwald indicated that they are confident that the survey results represent the characteristics of non-qualified annuity owners with a sampling error of plus or minus three percentage points at the 95% confidence level.

September 7, 2009

WASHINGTONG, D.C. — The Americans for Secure Retirement coalition today applauded the Obama Administration’s increased focus on the retirement challenges facing Americans and its announcement of proposals to help Americans achieve better financial security in retirement.

While ASR is pleased that President Obama used his weekly Saturday address to propose changes that will make it easier for American workers to save for retirement, it called on the Administration to also consider broader and comprehensive retirement solutions.

“These solution should address not just ways that help Americans save more, but also help retirees manage their retirement savings by providing them with a steady stream of income throughout their lifetime,” said Bill Waldie, Chariman of ASR.

Two pieces of legislation now before Congress, the Retirement Security for Life Act in the U.S. Senate (S.1297) sponsored by Senators Kent Conrad (D-ND) and Pat Roberts (R-KS) and the Retirement Security Needs Lifetime Pay Act in the House of Representatives (H.R. 1297) sponsored by Reps. Earl Pomeroy (R-ND) and Ginny Brown-Waite (D-FL), would do encourage Americans to convert a portion of their savings into a lifetime annuity. The bills would exclude from taxation 50% of the income receive from an annuity up to a certain amount. It would yield up to $5,000 in tax savings for the average taxpayer. Annuities are the only retirement vehicle that offers a guaranteed stream of income for life and various research studies show that Americans with an annuity are more secure financially in their retirement.

ASR applauds the President for giving retirement policy the attention it deserves and urges all policy makers to address these issues with comprehensive solutions.

June 22, 2009

Legislation Will Help Middle-Income Americans Achieve a Financially Secure Retirement

WASHINGTON, DC – The Americans for Secure Retirement (ASR) coalition today welcomed the re-introduction in the U.S. Senate of critically important retirement legislation. The Retirement Security for Life Act, S. 1297, introduced by Sen. Kent Conrad (D-ND) and Sen. Pat Roberts (R-KS), provides incentives that will increase the accessibility of retirement vehicles that enable a guaranteed paycheck for life, helping Americans have a more financially secure retirement.

The Retirement Security for Life Act would provide a 50 percent tax exclusion on the annual income from a non-qualified lifetime annuity, up to $20,000. A lifetime annuity is the only financial vehicle that delivers a steady stream of income for life- a paycheck for life. Under the legislation, a typical American in the 25 percent tax bracket would save up to $5,000 in taxes annually.

Similar provisions are contained in legislation recently introduced in the U.S. House of Representatives, H.R. 2748, the Retirement Security Needs Lifetime Pay Act, sponsored by Reps Early Pomeroy (D-ND) and Ginny Brown-Waite (R-FL).

“With the recent economic downturn, Social Security replacing less and less of pre-retirement income, pensions on the decline and lifespan on the rise, people need access to many different retirement options. By providing a strong tax incentive for Americans to use lifetime annuities as part of their retirement portfolio, policymakers are helping people secure their retirement,” Waldie said.

A recently released study commissioned by ASR, and conducted by Ernst and Young, reveals the importance of American retirees having a steady stream of retirement income. The study showed that without making serious reductions to their standard of living, by as much as 51 percent in some cases, a majority of middle-income Americans could expect to outlive their financial resources. Further, the study determined that households with a guaranteed source of retirement income outside of Social Security, such as a lifetime annuity, showed the greatest chance of financial success. Retirement security is especially critical for the 70 million American workers who lack access to any employer-based retirement benefits and will have to take saving and planning entirely into their own hands.

“Senators Conrad and Roberts should be commended for their dedication to this critical issue. For the increasing number of Americans, including those who comprise the agricultural community, who have no access to employer sponsored retirement and will rely on Social Security alone, it is critical that we have leaders willing to examine all alternatives to help Americans obtain a secure retirement,” said Marcie Williams, President of American Agri-women.

“This legislation is a critical component of retirement policy and we are pleased that Congress is making helping Americans secure a financially sound retirement a priority,” said Bill Waldie, Chairman of ASR. “This is an important step toward addressing the anxiety many Americans feel toward their financial outlook during retirement.”

Last year, the Retirement Security for Life Act received broad support in both chambers of Congress, with 79 cosponsors in House and 12 in the Senate.

ASR is a coalition representing women, minorities, farmers, small businesses, and the life insurance industry united in a mission to achieve a more secure retirement for all Americans.

You can learn more about ASR at our website, www.paycheckforlife.org.

June 9, 2009

New Report Demonstrates Need for Guaranteed Retirement Income Sources Such as Lifetime Annuities

For Video and Audio Related to this story, go to: http://inr.mediaseed.tv/Paycheck_36599/

WASHINGTON, DC – The findings of a new report released today indicate that the decline in the stock market in the last six months of 2008 dramatically worsened the retirement outlook for middle-class Americans. The analysis, conducted by Ernst & Young LLP on behalf of the retirement coalition Americans for Secure Retirement (ASR), finds that due to the economic downturn, the retirement assets of recent and near retirees decreased between 14 and 17 percent in the last six months of 2008. This decline significantly reduces the likelihood that middle income retirees will have enough financial resources to last them through their lifetime.

The study also determined that many Americans will be forced to reduce their standard of living, some by as much as 51 percent, to avoid outliving their financial assets and that households with a guaranteed source of retirement income outside of Social Security, such as a lifetime annuity, showed the greatest chance of financial success. Conversely, the study found that households with no guaranteed retirement income outside of Social Security are most vulnerable to outliving their financial assets.

The new report is an update to Ernst & Young’s July 2008 Retirement Vulnerability Study. The 2008 study found that almost three out of five middle-class new retirees could expect to outlive their financial assets if they attempted to maintain their pre-retirement standard of living.

“In only 6 months, the financial downturn has had a significant adverse impact on the retirement assets of middle-income Americans and on their prospects of a secure retirement. As was the case in our 2008 study, our update finds that people with a guaranteed source of income outside of Social Security are much better positioned than those that are without guaranteed income,” said Tom Neubig of Ernst and Young.

“Now more than ever, it is critical that Americans have guaranteed retirement income through vehicles like lifetime annuities,” said Bill Waldie, Chairman of ASR. “The traditional retirement system of pensions and Social Security are increasingly no longer enough for retirees and there is a critical need for Congress and policy makers to act, to help Americans secure their retirement future.”

Findings of the report include:

• A recently retired married couple earning $75,000 a year with a defined benefit plan has a 57 percent chance that they will have enough financial resources in retirement. The same couple, without any guaranteed source of retirement income, is left with only a 6 percent chance of financial success.

• A near retiree single female, earning $50,000 a year with a defined benefit plan, has a 66 percent chance that she will not outlive her financial resources. The same female, without any guaranteed source of income in retirement, is left with only an 18 percent chance of financial success.

Solutions to this retirement challenge are currently being considered in the Congress. In the House, Representatives Earl Pomeroy (D-ND) and Ginny Brown-Waite (R-FL) have introduced the Retirement Security Needs Lifetime Pay Act, H.R. 2748. While in the Senate, Senators Kent Conrad (D-ND) and Pat Roberts (R-KS) are planning to reintroduce the Retirement Security for Life Act, a measure that received broad bipartisan support in the 110th Congress. Both bills would create greater accessibility to nonqualified lifetime annuities by creating a tax incentive to convert a portion of a person’s savings or assets into a steady “paycheck” for life. The bills would provide a 50 percent tax exclusion on the annual income from a non-qualified annuity, saving a typical American in the 25 percent tax bracket up to $5,000.

In the updated report, Ernst & Young looked at six of the original 36 typical middleincome households approaching retirement from the 2008 study, chosen because they represent retirement vulnerability across all middle-income households approaching retirement: Married couples at or near retirement making $75,000 in earnings with and without guaranteed retirement income, and single females making $50,000 in earnings seven years before retirement with and without guaranteed retirement income.

Americans for Secure Retirement (ASR) is a broad-based coalition of more than 40 organizations who are united in their commitment to ensuring retirement security for all Americans. Our members share the goal of raising awareness of the retirement problem and crafting creative solutions to help people save and prosper in their retired years. Specifically, the coalition advocates for Congress and policy makers to encourage greater access to retirement security by passing a tax incentive for lifetime annuities, the only retirement vehicle that offers a guaranteed stream of income in retirement – a steady paycheck for life.

To view the original retirement vulnerability study and the recently completed update, please visit www.paycheckforlife.org.

Click here to read the charts detailing the findings of the new report.

June 9, 2009

Bill Includes Increased Access to Guaranteed Retirement Income

WASHINGTON, DC – The Americans for Secure Retirement (ASR) coalition today applauded introduction in the U.S. House of Representatives of crucial retirement legislation. H.R. 2748, the Retirement Security Needs for Life Act, introduced by Representatives Earl Pomeroy (D-ND) and Ginny Brown-Waite (R-FL) provides incentives for Americans to secure retirement vehicles that provide a steady stream of income for life.

The Retirement Security Needs Lifetime Pay Act would encourage retirees to receive some of their retirement savings in the form of guaranteed lifetime income. Included in the bill is a provision that would give a 50 percent tax exclusion on the annual income from a non-qualified lifetime annuity, up to $10,000 per year. A lifetime annuity is the only financial vehicle that delivers a steady stream of income for life- a paycheck for life.

“Retirement security is an increasing concern for Americans as traditional sources of retirement income become less reliable. Representatives Pomeroy and Brown-Waite should be commended for recognizing the importance of encouraging Americans to plan for retirement with options, such as lifetime annuities, that provide a steady stream of income in retirement,” said William Waldie, Chairman of ASR.

Additionally, the bill would exclude from taxes, a portion of income payments from Individual Retirement Accounts (IRAs), and qualified retirement plans other than defined benefit plans.

In the last Congress, the Retirement Security for Life Act, a bill which provided for the same 50% tax exclusion for income received in retirement from a lifetime annuity, received broad support from 79 cosponsors from both sides of the aisle.

Studies looking at the retirement readiness of middle-income Americans have concluded that households with guaranteed retirement income in addition to Social Security face a much more certain financial future in retirement than those with out. A 2008 study conducted by Ernst & Young on behalf of ASR, prior to the U.S. financial market declines, showed that nearly three fifths of middle income retirees could expect to outlive their savings.

“With the recent economic down turn, many Americans, including many in the agricultural sector who do not have employer retirement plans, watched their retirement savings drastically decrease. Now more than ever, middle-class Americans will have to evaluate their retirement savings to ensure they do not outlive their financial resources,” said Marcie Williams, President of American Agri-Women, an ASR coalition member.

ASR is a coalition that works with women, minorities, farmers, small businesses, and the life insurance industry to raise awareness about the issues surrounding retirement. For more information on ASR and its mission or to obtain a copy of the recent Ernst & Young study visit www.paycheckforlife.org.