Printer Friendly

PENSION ACCOUNT DEPOSITS TO BECOME THE PREFERRED WAY TO SAVE IN AMERICA

PENSION ACCOUNT DEPOSITS TO BECOME THE PREFERRED WAY TO SAVE IN AMERICA
 WASHINGTON, Dec. 13 /PRNewswire/ -- Retirement savings programs offered by employers will become the preferred way to save in America during the next several years, according to Byron D. Oliver, president of CIGNA Group Pension Division.
 In a speech today before the American Institute of Certified Public Accountants, Oliver noted that real increase in savings wealth during the "spending spree" of the 1980s occurred in pension fund accumulations, principally employee deposits matched by employer contributions in 401(k) programs. Nearly 75 percent of American employers with 1,000 employees or more offer 401(k) plans.
 When America last enjoyed high national savings rates in the 1950s, pensions represented only 2 percent of national wealth. "Today, more than 17 percent of all wealth is held by pension funds," Oliver observed. "That share is rapidly growing."
 Oliver predicts 401(k) plans will one day represent the largest, "core savings program" for most Americans. "Expect to see these programs get a growing share of attention from the baby boom generation now entering that time of life where retirement savings becomes most important," Oliver said.
 "By the year 2000, employees will have deposited close to an average $100,000 in their company's retirement savings funds," he said.
 As asset balances rise, employee interest in their pension plan savings increases dramatically, according to Oliver. "They will want to know more about their investments, especially how their pension plan meets short and long-term financial goals," he said.
 This will prompt employers and their pension administrators to "develop tools that enlighten and inform" savers about their retirement income needs, Oliver said. Bank-like statements, on-demand loan processing, daily switching of funds and voice response systems also will become necessary services for those administrators hoping to stay competitive in the business of pensions, he added.
 A complete copy of today's speech is available by calling 203-726-6542.
 CIGNA Group Pension Division manages more than $30 billion in retirement plan assets for one million corporate employees in America. More than 500,000 employees have 401(k) deposits managed by CIGNA. CIGNA Corporation is a leading provider of insurance, retirement benefits, investment management, health care and financial services to businesses and individuals worldwide.
 -0- 12/13/91
 /CONTACT: Riva Ruran of CIGNA, 203-726-6542/ CO: CIGNA Corporation ST: Connecticut IN: INS SU: TS-SH -- NY020 -- 2328 12/13/91 11:18 EST
COPYRIGHT 1991 PR Newswire Association LLC
No portion of this article can be reproduced without the express written permission from the copyright holder.
Copyright 1991 Gale, Cengage Learning. All rights reserved.

Article Details
Printer friendly Cite/link Email Feedback
Publication:PR Newswire
Date:Dec 13, 1991
Words:399
Previous Article:SEAGRAM COMPLETES SALE OF TRADEMARK RIGHTS TO SEVEN DISTILLED SPIRITS BRANDS
Next Article:SAN FRANCISCO PRICES ROSE 0.1 PERCENT IN NOVEMBER
Topics:


Related Articles
AEGON Continues Strong Operational Performance and Announces EUR 1 Billion Share Repurchase Program.
AEGON Delivers Strong Third Quarter Operational Performance.
Aegon Delivers Strong Third Quarter Operational Performance.
Businesses Deliver Solid Underlying Growth and no Material Impairments to AEGON's Investments in 2007.
AEGON Reports Solid Business Performance and Strong Capital Position.
AEGON N.V. - AEGON second quarter results 2008.
/FIRST AND FINAL ADD -- LNTH001 -- AEGON N.V. Earnings/.
AEGON Maintains Strong Capital Position Despite Fourth Quarter 2008 Loss.
/FIRST AND FINAL ADD -- LNTH001 -- AEGON N.V. Earnings/.
AEGON Improves Underlying Earnings and Capital Position in Q2 2009.

Terms of use | Copyright © 2016 Farlex, Inc. | Feedback | For webmasters