Seven Key Issues Stand Between Baby Boomers and a Comfortable
Retirement Lifestyle
“But What If I Live: The American Retirement Crisis” Provides a Dramatic Wake-Up Call for a Generation of Over-Spent and Under-Saved Americans
LANSING, Mich. – August 9, 2006 – Seven key issues stand between Baby Boomers and the retirement lifestyle they dream about, according to a new book written by Gregory Salsbury, Ph.D., executive vice president of Jackson National Life Distributors (Jackson). “But What If I Live: The American Retirement Crisis: A Retirement Guide for Baby Boomers,” is now available through The National Underwriter Company, a unit of Highline Media LLC, one of the leading publishers of financial services products and information.
“Retirement has undergone changes in concept, design, benefits and even availability,” said Dr. Salsbury. “My profound worry is that the Boomers will be the first generation that will be worse off in retirement than the generation before.“
Dr. Salsbury’s seven key issues that Baby Boomers must address while planning for retirement include:
1. The Aging of America – More than half of American couples age 65 and over can expect to have at least one spouse live until age 90 or more, which puts a significant strain on a fixed income retirement budget.
2. Disappearing Pensions – Each year, more than 1,000 employers voluntarily shut down their pension plans, leaving a shrinking pool of employers paying into the federal retirement insurance program. 44 million Americans are currently covered by employer-sponsored pension plans1, while the number of plans has declined from 114,000 in 1985 to 31,200 in 2004.2
3. Social Insecurity – The federal government currently owes Social Security over $1.5 trillion and without a tax increase or reduction in benefits, Social Security will continue toward bankruptcy. Meanwhile, more than two-thirds of retirees rely on Social Security for 50% of their income, and 33% use it for 90% of their income. Without Social Security, half of American retirees would live in poverty.
4. The Tax Axe – For most American families, taxes are the single greatest monthly expense, accounting for 30% of their income. While many people think taxes will only rise for the rich, chances are the IRS considers you rich as well. If your household earned $57,343 in 2005, the IRS says you’re rich, and that puts you squarely in the top 25% of all taxpayers in America.3
5. The Invisible Enemy - Inflation is truly the invisible enemy of your income, eating away at your purchasing power and deteriorating the value of your assets. $1 in 1983 was worth only 52 cents in 2003, and if you need $50,000 a year in today’s dollars, you will need $65,239 in 10 years, and $101,640 in 25 years.4 These amounts will only maintain your standard of living, not increase it.
6. The Healthcare Nightmare – The real “gorilla in the closet” is health care, a problem with no proposed solution. The Employee Benefits Research Institute estimates that, even with Medicare, the average American will need almost $300,000 just to pay Medicare insurance premiums in retirement.
7. Red, White & Broke – Let’s face it, Americans aren’t saving for retirement. In 2004, America’s savings rate hit its lowest point since the Great Depression5 and personal bankruptcies hit an all-time high.6
“We are proud to partner with Dr. Salsbury and Jackson to bring this very important and often-overlooked information to those who need it most: financial service professionals and consumers,” said Deborah Miner, JD, CLU, ChFC, editorial director of Tax and Financial Planning at the National Underwriter Company. “As a publisher, we value this new partnership, as it creates the ability to share comprehensive financial service information about the retirement crisis to a wide audience.”
“It’s harder to get ahead and stay ahead today,” continued Salsbury. “It costs more money and more sweat equity. Every Boomer needs to anticipate and address the seven key issues standing between them and the retirement they envision, and it’s my hope that ‘But What If I Live’ will give them a good game plan.”
Consumers interested in purchasing a copy of “But What If I Live” can visit www.ButWhatIfILive.com. All of Dr. Salsbury’s proceeds from the sale of “But What If I Live” will be donated to Junior Achievement through the Jackson National Community Fund. Reporters and segment producers interested in speaking with Dr. Salsbury on the American Retirement Crisis can contact Andrew Silver, Public Relations Director for Jackson, at 303-224-7542 or Andrew.Silver@JNLI.com.
About Jackson National Life Insurance Company
With more than $70 billion in assets (GAAP)7, Jackson National Life Insurance Company® (Jackson) is an industry leader in the areas of variable, fixed and fixed index annuities. The company also sells life insurance and institutional products. Jackson markets its products in 49 states and the District of Columbia through independent and regional broker-dealers, financial institutions and independent insurance agents. Jackson’s subsidiary, Jackson National Life Insurance Company of New York®, similarly markets products in the state of New York. Through its affiliates and subsidiaries, Jackson also provides asset management and retail brokerage services. For more information, visit www.jnl.com.
About the National Underwriter Company
NUCO, formed in 1897, is the leading publishing and information services business for the insurance industry. Headquarters are in Erlanger, Kentucky, a suburb of Cincinnati, and principal editorial and advertising sales offices are in Hoboken, New Jersey. NUCO’s Insurance Magazine Division publishes two weekly newsmagazines for the property/casualty and life/health insurance sectors carrying the National Underwriter brand. The company also publishes Claims, a monthly magazine for claims executives; Tech Decisions, for IT insurance professionals; Advising Boomers, for financial advisors to the baby boom generation; and two regional titles, Florida Underwriter and Insurance Advocate (NY metro market). In live events, NUCO sponsors the Annual Claims Exposition, and the Life Insurance Sales Mastery Forum. NUCO’s Professional Publishing Division issues its Fire, Casualty and Surety bulletins, reporting on the latest developments in insurance policy application and legal interpretation; and the TaxFacts annuals, summarizing how the tax code affects insurance and investment decisions, among some 160 titles in all. For more information about NUCO, visit www.nuco.com.
About Highline Media LLC
Highline Media LLC is a publishing company focusing on information for the financial, insurance and real estate sector headed by Andrew L. Goodenough, its President and Chief Executive Officer. The company’s first acquisition was the National Underwriter Company in October 2003, and its second was the insurance and banking data assets from Thomson, formerly marketed under the Sheshunoff and Thomson Financial Insurance Solutions brand names. Highline intends to acquire and launch publishing assets in the financial services, insurance and real estate fields. For more information, visit www.highlinemedia.com.
1. Greg Crawford and Vineeta Anand, “The Looming Retirement Disaster,” Pensions & Investments, April 18, 2005
2. Crawford and Anand, op. cit.
3. Tax Foundation, 2005
4. Ibbotson Yearbook, Ibbotson & Associates, 2004
5. “Gold: There’s No Free Lunch.” John Ing, March 30, 2006
6. “Personal Bankruptcies Soar to All-Time High.” CNN Money.com, March 24, 2006
7. As of 6/20/06 Jackson had $70.7 billion in total GAAP assets and $63.1 billion in GAAP policy liabilities set aside to pay primarily future policyowner benefits.