Washington, DC, June 17, 2010 — “Today’s hearing held by Senator Kohl and the Senate Special Committee on Aging focused on a challenge millions of Americans face as our country ages: Making our savings last through retirement. Certified Financial Planner Board of Standards, Inc., commends Senator Kohl for his leadership on this important issue. As the Baby Boom generation continues to retire, we need to ensure that their savings not only last through a comfortable retirement, but that hard-earned savings are protected from scams, high fees, unnecessary products and services and make sure financial advisers are always looking after their clients’ best interests.
“CFP® professionals generally agree that there is a pressing need for greater sensitivity to longevity risk and the importance of careful retirement planning. However, there is no consensus in the financial planning community over the use of annuities in retirement planning. CFP Board believes significant study of the issue is necessary before any legislative or administrative changes are made to facilitate the inclusion of lifetime income options in retirement plans.
“CFP Board strongly supports efforts by the Special Committee to look into better ways that we can educate, preserve and protect both our retirees and their savings. The need is clear. A recent survey of CFP® professionals found that clients expressed as their most overwhelming concern having adequate savings for retirement. Another survey found that 59 percent of CFP® professionals knew a client or prospective client who had been abused by an adviser. Of those, 41 percent were between 61 and 75 years old.
“To help with this, CFP Board encourages the Committee and Congress to focus on ways to help increase Americans’ savings rates and increase transparency of fees and financial products such as annuities. Education is perhaps one of the best things we can do to ensure Americans do not outlive their savings. We strongly support initiatives to educate people about risk and overall retirement planning.
“Curbing abusive practices and educating the American public is essential to enhancing the ability of all Americans to enjoy a comfortable retirement. CFP Board looks forward to working with the Special Committee on ways to address these very important issues."
About CFP Board: The mission of Certified Financial Planner Board of Standards, Inc. is to benefit the public by granting the CFP® certification and upholding it as the recognized standard of excellence for personal financial planning. The Board of Directors, in furthering CFP Board’s mission, acts on behalf of the public, CFP® certificants and other stakeholders. CFP Board owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™ and in the U.S., which it awards to individuals who successfully complete CFP Board's initial and ongoing certification requirements. CFP Board currently authorizes more than 61,000 individuals to use these marks in the United States. For more about CFP Board, visit www.CFP.net.
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CFP® - The Recognized Standard of Excellence in Personal Financial Planning
Dan Drummond, Director of Public Relations