Retirement savings weak before storm hit

Retirement accounts have taken a huge hit since the markets tanked, but they were already in trouble because most consumers weren’t saving enough even when times were good, according to one industry leader.
This means there’s an even stronger demand for the retirement industry to create simple and flexible products for consumers, said Robert Kerzner, president and chief executive of LIMRA of Windsor, Conn., LOMA of Atlanta and Windsor, Conn.-based LL Global Inc., parent to both LIMRA and LOMA.
He spoke at the Managing Retirement Income conference in Boston today. The conference is sponsored by the Boston-based Retirement Income Industry Association.
“Before the crisis, people weren’t saving,” Mr. Kerzner said.
“The U.S. was in a negative savings rate. People were and are still woefully unprepared for retirement.”
He also said that 401(k) plans will continue to struggle this year because more companies are taking away matching contributions and more people are considering reducing their contributions.
“There’s no question that guarantees will remain, but the challenge is how best to provide those guarantees,” Mr. Kerzner said.
“There’s no question that transformation is under way for whatever retirement is going to be.”