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Ameriprise Survey Shows Retirement Savings Derailed by More Than Just the Recession; Financial Impacts are Measurable
Source: Ameriprise
Countless studies have shown that many Baby Boomers don’t believe they have enough savings to live comfortably in retirement, but why are so many financially unprepared? Data from the Retirement DerailersSM survey, released today by Ameriprise Financial (NYSE: AMP), helps answer the questions many have about the retirement crisis in America.
The Retirement DerailersSM survey found that the vast majority (90%) of Americans ages 50-70 with $100,000 or more in investable and retirement assets have experienced at least one “derailer” – an economic or life event that has made an impact on their retirement savings goals. The average respondent experienced four of these events, which range from derailers that are beyond their control such as the effects of the recession, to family and lifestyle choices that have lasting financial consequences. In the end, these events set respondents back $117,000 on average. In fact, nearly two in five of the respondents (37%) experienced five or more unanticipated events costing them approximately $144,000.
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Unexpected expenses come in all shapes and sizes both before and during retirement, but there are a few that rose to the top. The top three most cited derailers are, not surprisingly, related to the recession. Nearly two-thirds (63%) of respondents say low interest rates impacted the growth of their investments. More than half (55%) say their savings were significantly lowered due to market declines and one-third (33%) admit their home equity is now not going to help fund retirement as much as they expected.Still, many respondents experienced life events that derailed their retirement. One in four (23%) are supporting a grown child or grandchild and just as many (23%) say their pension plan is not worth as much as they’d thought or has been discontinued. What’s more, one in five respondents’ retirement goals have been thrown off track due to making bad investments (22%), taking social security before retirement age (19%) and/or experiencing a job loss (18%).
While it appears that Boomers have found a way to “make it work” in the short-term as they weather these unexpected derailers, they may not have the ability to be as resilient after they leave the workforce. Only 33 percent of respondents say they are extremely or very confident they would be able to afford an unexpected expense such as large home repairs in retirement.
Declining Medicine Use and Costs: For Better or Worse? A Review of the Use of Medicines in the United States in 2012
Declining Medicine Use and Costs: For Better or Worse? A Review of the Use of Medicines in the United States in 2012 (PDF)
Source: IMS Institute for Health Informatics
From press release:
Total spending on U.S. medicines fell 3.5 percent on a real per capita basis in 2012 and the use of healthcare services overall declined for the second consecutive year, according to a new study released today by the IMS Institute for Healthcare Informatics.
The report – Declining Medicine Use and Costs: For Better or Worse? – finds that total dollars spent on medications in the U.S. reached $325.8 billion last year, or real per capita spending of $898, down $33 from 2011. Underlying drivers for the overall decline in healthcare service use included fewer patient visits to office-based physicians, fewer non-emergency admissions to hospitals and outpatient facilities, and a less severe flu season in the early part of 2012. Patent expiries in 2012 contributed $28.9 billion to the reduction in medicine spending. This was their largest-ever impact as millions of patients accessed lower-cost generic versions of additional medicines.
Patients with insurance paid higher deductibles, copays and co-insurance for their overall healthcare, but prescription drug copays for most patients declined. At the same time, new transformative medicines became available to treat a large number of diseases with small or strictly defined patient populations.
Genworth 2013 Annual Cost of Care Survey: Nursing Home Costs Up, At Home Care Prices Remain Relatively Flat
Source: Genworth
In its 10th year, the Genworth 2013 Cost of Care Survey shows a continued upward trajectory when it comes to the cost of obtaining long term care services. The cost of receiving care in a setting such as an assisted living facility or nursing home is dramatically increasing, while the cost to receive care at home through homemaker services or a home health aide is rising at a much more gradual pace.
"There are many factors that go into rising care costs, from the number of available skilled professionals to real estate prices," said Pat Foley, president of distribution and marketing for Genworth. "If you look at national private nursing home costs over the past 10 years that we’ve done this study, the median annual costs have gone up from $65,200 to $83,950, increasing at more than four percent a year. The better news is that costs for homemaker services and home health aides have remained relatively flat. Since 70% of Genworth’s first time long term care claimants choose in-home care, these costs have remained more manageable[1]."
Nationally, the 2013 median hourly cost of homemaker services and home health aide services is $18 and $19 respectively. Homemaker costs have risen just 1.4 percent since 2012 and 0.8 annually over the past five years. Home health aide services have risen 2.3 percent since 2012 and 1.0 percent annually over the past five years.
The costs to receive care in an assisted living facility are rising much faster. The median annual cost for care in an assisted living facility is $41,400. This represents an increase of 4.6 percent since 2012 and a 4.3 percent annual increase over the past five years. The comparable cost for a private nursing home room rose 3.6 percent from 2012 to 2013, to $83,950, or 4.5 percent annualized over the past five years.
U.S. Stock Ownership Stays at Record Low
U.S. Stock Ownership Stays at Record Low
Source: Gallup
Despite strong gains in the stock market over the past year, and the Dow Jones Industrial Average’s reaching record highs in the past month, stock ownership among U.S. adults is at its lowest level in Gallup trends since 1998, essentially unchanged from a year ago. Just over half of Americans, 52%, now say they personally, or jointly with a spouse, own stock outright or as part of a mutual fund or self-directed retirement account.
2012 Global multichannel consumer survey
2012 Global multichannel consumer survey
Source: PriceWaterhouse Coopers
The 2012 global multichannel retail consumer survey was completed by more than 11,000 respondents from 11 different countries. For PwC, this is our most comprehensive research to date on multichannel retailing. In order to truly understand the trends and spot the patterns in multichannel shopping, we surveyed only those consumers who self-identified as online shoppers.
The 11 countries covered in the survey were:
- Brazil
- Canada
- China
- France
- Germany
- Netherlands
- Russia
- Switzerland
- Turkey
- United Kingdom
- United States
INRIX Traffic Scorecard Reports U.S. Congestion on the Rise in 2013 Following Two Years of Double-Digit Declines
Source: INRIX
INRIX, a leading international provider of traffic information and driver services, today released its sixth Traffic Scorecard Annual Report, which revealed that traffic congestion is back on the rise in 2013 after two consecutive years of declines. In the first three months of this year, traffic congestion is up 4 percent compared to 2012. This suggests that after a tumultuous economic year in 2012, the economy is back on the mend bringing increased traffic congestion.
The uptick in traffic congestion in 2013 follows a 22 percent decrease in 2012. The “stop n go” nature of the results indicate an overall economic climate that has not yet returned to pre-recession levels in many areas, including total jobs and unemployment rates.
Deloitte Report Uncovers Seven Crucial Leadership Conversations
Deloitte Report Uncovers Seven Crucial Leadership Conversations
Source: Deloitte
Success in most organizations depends on the commitment and talent of its workforce. According to Deloitte’s third annual Human Capital Trends report, Leading Indicators, C-level executives need to take a critical look at how their company’s talent is driving its business and address seven specific issues in order to remain successful over the next 18 to 24 months.
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The following seven Human Capital trends examined in the report offer leaders the opportunity to make more informed talent decisions going forward:
- The open talent economy – An organization that embraces the emerging concept of the open talent economy – a collaborative, technology-driven, rapid-cycle way of doing business – can be poised to exploit its opportunities and immerse itself more effectively in the global talent market.
- Creating an elastic workplace – Leading organizations are taking a fresh look at workplace flexibility through the lens of business strategy as the issue evolves into an opportunity that impacts all employees.
- Innovating the talent brand – In order to effectively retain and attract the best talent, companies should focus on their talent brand by building leading talent practices and communicating them in innovative ways.
- Finding the silver lining in the talent gap – The nature of retirement along with the changing ability of a generation to retire early is shifting the demographics of the workforce again. In fact, Deloitte found in a previous study that 34 percent of U.S. employees plan on delaying their retirement age. The combination of an aging workforce remaining actively employed, even when facing retirement age to an influx of talent from Generation Y, means that organizations need to determine the best way to continue to get value from older workers without holding younger workers back.
- Debunking the Superman myth – Given the ever-changing pressures on businesses today, including adopting new technologies, entering an emerging market country or adapting to new regulatory environments, companies need a bench of leaders who can operate across different environments and adapt to the unexpected.
- The performance management puzzle – To effectively motivate employees, some leading organizations are considering new performance management tools with social media characteristics that incorporate peer, customer and other stakeholder feedback.
- Thinking like an economist – HR and talent leaders should adopt an economist’s mindset and expand their use of economic data to make fact-based decisions, which not only increases their alignment with the other business leaders in their organization, but also helps put people in the right positions to unlock their most valuable talents.
Home Prices Rise in February 2013 According to the S&P/Case-Shiller Home Price Indices
Home Prices Rise in February 2013 According to the S&P/Case-Shiller Home Price Indices (Word)
Source: Standard & Poor’s
Data through February 2013, released today by S&P Dow Jones Indices for its S&P/Case-Shiller 1 Home Price Indices, the leading measure of U.S. home prices, showed average home prices increased 8.6% and 9.3% for the 10- and 20-City Composites in the 12 months ending in February 2013. The 10- and 20-City Composites rose 0.4% and 0.3% from January to February.
All 20 cities covered by the indices posted year-over-year increases for at least two consecutive months. In 16 of the 20 cities annual growth rates rose from the last month; Detroit, Miami, Minneapolis and Phoenix saw slight annual deceleration ranging from -0.1 to -0.4 percentage points. Phoenix continued to stand out with an impressive year-over-year return of +23.0% while Atlanta and Dallas had the highest annual growth rates in the history of these indices since 1992 and 2001, respectively.
The 2013 Data Breach Investigations Report
The 2013 Data Breach Investigations Report
Source: Verizon
From press release:
The ‘Verizon 2013 Data Breach Investigations Report’ reveals that large-scale financial cybercrime and state-affiliated espionage dominated the security landscape in 2012. Taking the top spot for all breaches in the 2013 report is financially motived cybercrime (75 percent), with state-affiliated espionage campaigns claiming the No. 2 spot (20 percent). Breaches in the No. 2 spot include cyberthreats aimed at stealing intellectual property — such as classified information, trade secrets and technical resources — to further national and economic interests.
The 2013 DBIR also found that the proportion of incidents involving hacktivists — who act out of ideological motivations or even just for fun — held steady; but the amount of data stolen decreased, as many hacktivists shifted to other methods such as distributed denial of service (DDoS) attacks. These attacks, aimed at paralyzing or disrupting systems, also have significant costs because they impair business and operations.
Minneapolis-St. Paul Area Residents Most Likely to Feel Safe; Memphis area residents least likely to feel safe
Source: Gallup
Eighty percent of those living in the Minneapolis-St. Paul area say they feel safe walking alone at night in the area where they live, the highest percentage among the 50 largest U.S. metropolitan areas. Minneapolis is followed closely by Denver, Raleigh, Boston, Salt Lake City, and Austin.
The financially sustainable university; A focused strategy can help colleges and universities reinvent their industry and stop spending beyond their means
The financially sustainable university; A focused strategy can help colleges and universities reinvent their industry and stop spending beyond their means (PDF)
Source: Bain & Company
Few industries in the United States have achieved unquestioned global leadership as consistently and effectively as our higher education system. US colleges and universities are the cornerstone of our economic prosperity and the key to realizing the American dream. Thirty years of growth have confirmed the sector’s leadership and vibrancy—the result of demographic and economic factors combining to lift higher education even higher.
Despite this success, talk of a higher education “bubble” has reached a fever pitch in the last year. The numbers are very familiar by now: Annual tuition increases several times the rate of infl ation have become commonplace. The volume of student loan debt has surpassed $1 trillion and is now greater than credit card debt. Most college and university presidents, as well as their boards, executive teams and faculty members, are well aware that a host of factors have made innovation and change necessary.
Still, at the majority of institutions, the pace of change is slower than it needs to be. Plenty of hurdles exist, includ- ing the belief that things will return to the way they always were. (Note: They won’t.) But the biggest obstacle is more fundamental: While leaders might have a sense of what needs to be done, they may not know how to achieve the required degree of change that will allow their institution not just to survive, but also thrive with a focused strategy and a sustainable financial base.
Leading change is challenging in any organization. But in higher education, it’s markedly more difficult. If the stakes weren’t so high, incremental improvements might be enough. But they aren’t, and that’s become abundantly clear. Change is needed, and it’s needed now. What follows is a road map for college and university presidents and boards of trustees, explaining the scope and depth of the situation, the key actions required and—most important—what it will take to succeed in leading change.
Learning to Adapt: A Case for Accelerating Adaptive Learning in Higher Education
Learning to Adapt: A Case for Accelerating Adaptive Learning in Higher Education
Source: Education Growth Advisors
Adaptive learning solutions are taking root around the globe in higher education and proving to be a promising solution to unshackle higher education from the "Iron Triangle" of cost, access and quality. This Bill & Melinda Gates Foundation funded white paper by Education Growth Advisors, explores the current adoption, opportunities, barriers, advancements, solutions and case studies of adaptive learning in higher education.
The white paper, a precursor to the full report expected to be published later in March, provides analysis of the adaptive learning landscape including benefits and drawbacks of current products and tools, case studies from select universities, as well as ways a personalized, technology-enabled, and data-driven approach to learning improve retention, measure student learning, aide the achievement of better outcomes, and improve pedagogy. Highlights from the paper include:
- A uniform definition of personalized versus adaptive learning- A discussion of varying approaches to adaptive learning from linear to complex algorithmic pathways
– A review of solutions providers from Platform to Publishers
- Examples of adaptive learning adoption and evaluation on campuses around the globe
- The internal and external risks and barriers of adaptive learning adoption by colleges, universities and faculty
- The critical questions institutional leaders must address before proceeding with an adaptive learning initiative
Provo-Orem, Utah, Is Most Religious U.S. Metro Area
Provo-Orem, Utah, Is Most Religious U.S. Metro Area
Source: Gallup
Provo-Orem, Utah, is the most religious of 189 U.S. metropolitan areas Gallup surveyed in 2012, with 77% of its residents classified as very religious. Burlington, Vt., and Boulder, Colo., are the least religious, with 17% meeting that threshold. Most of the top religious cities are in the South — the exceptions are Provo; Ogden-Clearfield, Utah; and Holland-Grand Haven, Mich. The least religious cities are clustered in the Northeast and on the Pacific Coast, with the exception of Boulder and Madison, Wis.
Why Retailers Are Keeping It Fresh: Fresh Foods Not Spoiled By Inflationary Heat
Why Retailers Are Keeping It Fresh: Fresh Foods Not Spoiled By Inflationary Heat
Source: Nielsen
Despite inflationary heat affecting many of our wallets, fresh foods continue to maintain healthy sales contributions at retail. In fact, fresh foods can comprise between 30-60 percent of total food, grocery and personal care expenses on average, depending on country and type of fresh product. Let’s face it, fresh foods are high-traffic volume boosters. They are a staple to a healthy diet, and we shop for fresh foods often.
New findings from the Nielsen Global Survey of Fresh Foods reveal how much fresh foods we consume, where we shop for fresh products and why we shop these preferred retail channels. By combining global survey research with Nielsen sales information collected from around the world, we unearth insights that re-define retail strategies to bolster sales in both the perimeter and center store aisles. The Shopper Trends Survey findings are based on a global study, covering 54 markets across 58 countries, with a total sample size of 87,000 respondents.
How the Mobile Consumer Connects Around the Globe
How the Mobile Consumer Connects Around the Globe
Source: Nielsen
Mobile phones have reached a critical mass around the world, serving as constant companions for consumers regardless of demographics or geography. But how we engage with mobile devices and content varies depending on who and where you are. We took a closer look at these differences in a new report, The Mobile Consumer: A Global Snapshot, and found that while mobile usage is becoming increasingly ubiquitous around the world, usage differs significantly by market and demographic groups.
The report examines mobile consumer behavior, device preference and usage in Australia, Brazil, China, India, Italy, Russia, South Korea, Turkey, the U.K. and the U.S.
Device preference is evolving, as smartphone penetration continues to grow in most markets, especially in developed markets with widespread 3G/4G access. In the U.S. and South Korea, for example, smartphone owners now make up the majority of mobile consumers. And in many markets this increased penetration is being led by a new generation of young adults eager to embrace smartphone technology. Comparatively, in growing economies like India and Turkey, a growing group of mobile phone users prefer feature phones over other device options (80% and 61%, respectively).
For Fourth Year, Hawaii No. 1 in Wellbeing, W.Va. Last
For Fourth Year, Hawaii No. 1 in Wellbeing, W.Va. Last
Source: Gallup
Hawaii residents have the highest wellbeing in the nation for the fourth consecutive year, with a Gallup-Healthways Well-Being Index score of 71.1 in 2012 — up from 70.2 in 2011. Colorado, Minnesota, Utah, and Vermont rounded out the top five states with the highest wellbeing scores last year. West Virginia residents have the lowest overall wellbeing for the fourth year in a row, with a Well-Being Index score of 61.3 in 2012 — slightly lower than the 62.3 in 2011. Kentucky, Mississippi, Tennessee, and Arkansas also had among the five lowest wellbeing scores in the country.
The MetLife Survey of the American Teacher: Challenges for School Leadership
The MetLife Survey of the American Teacher: Challenges for School Leadership (PDF)
Source: MetLife
Major Findings
- Principals take responsibility for leadership of their schools.
- The job of principal is becoming more complex and stressful.
- Teachers take leadership in schools and think principals are doing a good job.
- The biggest challenges leaders face are beyond the capacity of schools alone to address.
- Principals and teachers have similar views on academic challenges, but diverge somewhat on their priorities for leadership.
- Teacher satisfaction continues to decline.
- Challenges cited by educators are greater in high-needs schools.
- Educators are confident about implementing the Common Core, less so about its potential for increasing student success.
Mandiant Exposes APT1 – One of China’s Cyber Espionage Units & Releases 3,000 Indicators
Mandiant Exposes APT1 – One of China’s Cyber Espionage Units & Releases 3,000 Indicators
Source: Mandiant
Today, The Mandiant® Intelligence Center™ released an unprecedented report exposing APT1′s multi-year, enterprise-scale computer espionage campaign. APT1 is one of dozens of threat groups Mandiant tracks around the world and we consider it to be one of the most prolific in terms of the sheer quantity of information it has stolen.
Highlights of the report include:
- Evidence linking APT1 to China’s 2nd Bureau of the People’s Liberation Army (PLA) General Staff Department’s (GSD) 3rd Department (Military Cover Designator 61398).
- A timeline of APT1 economic espionage conducted since 2006 against 141 victims across multiple industries.
- APT1′s modus operandi (tools, tactics, procedures) including a compilation of videos showing actual APT1 activity.
- The timeline and details of over 40 APT1 malware families.
- The timeline and details of APT1′s extensive attack infrastructure.
Mandiant is also releasing a digital appendix with more than 3,000 indicators to bolster defenses against APT1 operations.
Digital Influence: How the Internet Affects New Product Purchase Decisions
Digital Influence: How the Internet Affects New Product Purchase Decisions
Source: Nielsen
Trying to decide on a new product to buy? Help is just a few clicks away.
According to a Nielsen global survey, the Internet is an important influence on consumers interested in buying new products in categories like electronics (81%), appliances (77%), books (70%) and music (69%). The trend is catching on in consumption categories too—such as food and beverages (62%), personal hygiene (62%), personal health/over-the-counter medicines (61%) and hair care (60%)—with respondents in Asia-Pacific, Latin America and Middle East/Africa most engaged in online decision-making. More than half of all global respondents consider the Internet important when it comes to purchasing new clothing (69%) and cars (68%).
The Rise of Paid Social Ads: Completing the Integrated Ad Approach
The Rise of Paid Social Ads: Completing the Integrated Ad Approach
Source: Nielsen
Amid the flourishing social media environment, marketers are increasingly viewing paid social media advertising as an integrated part of their marketing tool kits. According to a recent report by Vizu, a Nielsen company, the majority of advertisers say they use paid social media advertising in conjunction with other online and offline advertising (66% and 51%, respectively). Only 5% of advertisers report running primarily social-only campaigns. Social media advertising uses unique tactics—such as sponsored content, brand graphs and influencing the influencers—that have grown to become standard aspects of any integrated campaign.
When asked which online tactics they typically run their paid social media advertising alongside, advertisers’ top three responses were: online display (83%), online video (46%) and mobile (40%). In the offline world, advertisers said they combined their paid social media ads with print (52%), followed by TV (37%).
