BOSTON -- Although 78% of baby boomers are making plans for financially secure retirements, only 20% of them started saving before the age of 25 and 32% did not begin saving until after age 35, according to a new study.
The Scudder Kemper Baby Boom Generation Poll found the median age at which baby boomers began saving for retirement was 32.
According to the study, people in the 33 to 39 age group are more likely to perceive 401(k) and 403(b) plans as an important part of their retirement income. In contrast, those ages 46 to 51 are more oriented toward "savings/investments" for income after retirement.
The study found the most common motivator pushing baby boomers to save for retirement is a company 401(k) plan (54%), while 40% said the key motivator is the approach of retirement age.
Morgan Stanley launches lifecycle funds
NEW YORK -- Morgan Stanley Asset Management has launched a series of lifecycle funds called Strategic Advisor Funds. The funds -- conservative, moderate and aggressive -- will comprise various combinations of the 40 Morgan Stanley and Miller Anderson Sherrerd institutional funds.
The SEC approved the funds at the end of December.
Kravitz drops record-keeping work
LOS ANGELES -- Louis Kravitz & Associates will stop offering record-keeping services to defined contribution plans and has selected Union Bank of California to take over its existing business.
Kravitz provides record keeping to about 60 small plans with assets of about $480 million. Kravitz plans to close its daily processing center and concentrate on its actuarial and consulting services. Union Bank of California provides record-keeping services to about 400 plans with $85 billion in total assets. The transfer will become effective Feb. 28.
T. Rowe Price offers expanded services
BALTIMORE -- T. Rowe Price Inc. has started offering account access and transactional capabilities to 401(k) plan participants of its client plan sponsors. Participants may execute transactions, check account balances, obtain loan information, track fund performance and review asset allocation mixes and contribution amounts directly on the T. Rowe Price Web site, www.troweprice.com.
Educational materials offered in Spanish
PORTLAND, Ore. -- Arnerich Massena & Associates has published a Spanish language 401(k) educational workbook. Titled "Llegue a la Cumbre," the Spanish version of its Reach for the Top workbook, the text is designed to help participants understand the basic concepts of retirement saving and investing. Arnerich & Massena plans to expand its library of Spanish-language investment educational materials during 1998.
Pension Solutions, Marquette team up
ST. PAUL, Minn. -- Pension Solutions Inc. and Marquette Trust Co. have formed a joint venture to develop an integrated record-keeping and trust services program for 401(k) plans.
The new offering will combine the daily valuation and record-keeping capabilities of Pension Solutions, a wholly owned subsidiary of MSI Insurance Group, and the trust and brokerage operations of Marquette Investment Services.