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Corporate Compensation Plans Releases a New White Paper on Threat to Retirement Plans

"The real threat to individuals' retirement security," said Philip Davis, CCP's President, "is not market risk but disability risk - the risk of becoming disabled before retirement and the risk of being disabled after retirement and needing long term health care."

For example, when people become disabled before retirement, contributions to their qualified and nonqualified retirement plans stop. As a result, they can suffer devastating losses in their retirement benefits projected for age 65 - the time when payments from their disability insurance plans usually end. For example:

"Equally serious," said Tracy Shaw, Senior Vice President at CCP, "is that the costs of long term health care - which can run over a million dollars for 24/7 care resulting from a serious injury or stroke, or illnesses such as Parkinson's and Alzheimer's – can devastate retirement income. The result is that the family will have to live on less, or that assets earmarked for their security will have to be liquidated to pay care costs. In either event their retirement plan will have failed them." She added, "The fact that 70 out of 100 people over 65 will need long term health care during their lifetimes means that the majority of retirees will be forced to spend some, or all, of their retirement income on care costs rather than for their own benefit."

CCP's White Paper discusses how these threats have turned most retirement plans into health lotteries rather than programs offering certainty and guarantees. It also examines how tax-advantaged disability and long term care insurance can eliminate these threats and how they can be offered by employers on a cost-neutral basis.

Click here to view the White Paper, "Two Devastating Events that can Cause Retirement Plans to Fail"

Note to editors: Phil Davis, President of CCP, is available for interviews.

Corporate Compensation Plans Inc.
Tracy Shaw, Senior Vice President
203-792-7300
800-334-6447
TShaw@corpcompinc.com
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