Tag Archive | "retirement"

HSBC Report Shows Few Workers Save for Retirement in UK

Fewer workers are planning to save for their retirement in the United Kingdom than those living in China and Malaysia, a report by HSBC bank showed on Thursday.

British workers fail to save for their own retirement as they continue to avoid the alarming changes to pension provision in the United Kingdom.

The survey shows that despite the impending shift in the workers-to-retirees’ ratio, workers are still spending too much of their yearly income and are setting aside too little money. Thus, they are highly at risk to suffer impoverishment in the future.

HSBC bank published the report, which assessed the attitudes of the people across the world towards retirement, on Thursday. British people knew that they would possibly live longer than the other generations ahead of them. However, although they were aware that traditional pensions were expected to weaken, they still failed to save enough money for their retirement.

The total number of people aged over 65 around the world is expected to increase from 550 million today to more than 1.4 billion in 2050. Thus, financial provision in later life is an important matter to consider.

The report says that both Europe and North America are nearing a crucial stage as the first group of baby boomers approach their retirement. In Europe, the working population is set to diminish from 2012 and onwards.

However, the survey, which asked 17,000 people in 17 countries, showed that one in five UK residents planned to rely solely on state provisions (currently equal to 100 euro per week) when they reach old age, and failed to save some of their money.

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Manny Ramirez’s Fails Performace Enhancing Drug Test

Manny Ramirez should be remembered as one of the best hitters in the history of baseball, an MVP who altered the 2004 World Series, and a hall of famer. However, after recent discoveries, he will now always be remembered as a cheater, a coward, and someone who has wasted pure talent.

On Friday, Ramirez announced his retirement in a Major Baseball press release. It was later reported that the batter failed a performance-enhancing drug test performed by the league’s drug program. He decided to retire rather than submit an appeal or go through a 100-game suspension for his second violation.

Ramirez was criticized for his cowardice as he reportedly did not inform his employers of his decision. Rays learned about his retirement only from the Commissioner’s Office; not hearing from both Ramirez and his agent. Ramirez instead quit the team without leaving a notice or at the very least a letter of remorse.

The Rays, Ramirez’s former employer, said they were taken aback and got very disappointed with the athlete. They, however, said that they will not comment further regarding this recent blow to their team and would rather carry on for their fans.

Now, Manny Ramirez will not be awarded with a Hall of Flame plaque because after allegedly failing three different drug tests. New York Time said that Ramirez is one of those people in their 2003 steroid survey. On top of that, he was suspended on 2008 for failing another drug test; and most recently, this spring’s drug test results.

The details of Ramirez’s fall are unclear to everyone, however, the industry is still sad to see such great talent put to waste.

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401(k) Balances Rise to Record Levels

401k Savings Reaches Record HighThe recession has reminded Americans that they need to be saving for their retirement future. Average 401(k) balances are now hitting a 10 year high as the recession is winding down and allowing Americans to contribute more.

As 2010 came to a close the average balance had reached $71,500. That is a jump of 11.5% from 2009 when the average was $64,200. This is pulled strait from a report by Fidelity Investments released on Thursday.

401(k) have become the most popular way to save up for retirement. They have great earning power because the allow workers to deffer taxes on growth until they begin to withdrawal the money after retirement.

The average American taking advantage of 401k plans puts about 8.2% of their income into this investment vehicle. According to Fidelity, 51 million plus workers are funneling money into their 401(k).

With the recent economic stress, more people are thinking about their future. The report sites that Americans have increased contributions for the last 7 quarters in a row. This latest quarter has seen 6.1% of workers increase the amount contributed with only 3.0% of workers lowing the amount contributed.

The report also said that at the height of the recession, the number of employers reducing or getting rid of matching programs reached 8%. Contribution matching is a program that many employers have in place to encourage use of their 401(k). This makes it easier for employees to justify the savings since they are getting “free” money for retirement from their employer.

About 50% of those companies have told Fidelity that they are planning to restart those programs as the economy improves, some have already put the plans back in place.

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