March 2017

02Mar

Retirement savings: Rule is delayed that would force advisors to do the best thing for their clients

The Labor Department is formally proposing to delay the implementation of the so-called fiduciary rule, a key consumer protection championed by President Barack Obama and others. The rule requires retirement advisors to put their clients' best interest first, but industry groups don't like the regulation and argue that it limits consumers' investment choices. It is supposed to take effect April 10, but the new proposed start date will be June 9. There is a 15-day comment window on the delay. President...

March 2, 2017
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01Mar

About one million American workers have pension plans on verge of insolvency

Nearly one million working and retired Americans are currently covered by pension plans that are in imminent danger of insolvency, according to an organization trying to help people keep their retirement earnings. The union pension funds have been designated as being in “critical and declining status” — which means trustees are eligible to apply for cuts on their payouts. Reducing the payout load lengthens the life expectancy of the stressed fund — but does little to alleviate the suffering of seniors...

March 1, 2017
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01Mar

S.Korea’s giant pension fund plans pay boost to staunch talent loss

South Korea's National Pension Service (NPS), the world's third-largest pension fund, said on Tuesday it plans to boost the pay of its fund managers through an extra 4.3 billion won ($3.8 million) budget as it fights to staunch a wave of resignations. The NPS said in a statement that it plans to increase the fund managers' pay to the upper quartile range of the private sector, after its move to a remote city caused a spike in staff resignations. Previously, NPS...

March 1, 2017
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01Mar

Philip Green to Pay Up to 363 Million Pounds in BHS Pension Settlement

UK retail magnate Philip Green agreed to pay as much as 363 million pounds ($450 million) to compensate 19,000 former workers of collapsed department-store chain BHS after months of haggling with the country’s Pensions Regulator. The payment will enable trustees of BHS retirement plans to achieve a “significantly better outcome” than they would have under the UK’s Pension Protection Fund, Green said in a statement Tuesday. Regulators dropped their enforcement actions against the tycoon and his investment vehicles. “The settlement is...

March 1, 2017
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February 2017

28Feb

NCSSF to manage pension funds across seven Chinese provinces

Seven of China’s local governments, including Beijing and Shanghai, have agreed to hand over the management of their pension funds to the National Council for Social Security Fund (NCSSF) in an effort to increase investment diversification and improve yields, Wang Zhongmin, vice chairman of NCSSF, confirmed to local media, according to a report on Chinese news site china.org.cn. This means that approximately 360 billion RMB (US$52.37 billion) will be transferred to the NCSSF for centralised asset management from local authorities,...

February 28, 2017
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28Feb

Finally, a Retirement Plan for Job-Hopping Millennials

Workers in their 20s and 30s are changing jobs at a record pace, yet they often view retirement stability as a back-burner issue. A law passed in Maryland last summer could give those without conventional pensions or 401(k) plans a way to save for retirement without the nuisance of setting up individual savings accounts. But despite broad bipartisan support in the state, the application of the law has now stalled with a new Republican Congress and White House. Maryland is one...

February 28, 2017
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28Feb

What to Do Now to Retire Better

Learn the money basics Two books to consider: “How to Think About Money,” by Jonathan Clements, and “Heads I Win, Tails I Win: Why Smart Investors Fail and How to Tilt the Odds in Your Favor,” by Spencer Jakab. The Investor Protection Institute’s site, iInvest.org, offers free guides that explain stocks, bonds and mutual funds. You might also consider taking a personal finance course at a community college or checking the online offerings on sites like Coursera.org. Sketch out your monthly budget Add...

February 28, 2017
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27Feb

5 Ways Fake News Could Be Sabotaging Retirement Plans

We've been hearing a lot about "fake news" lately and now there's some concern that the president's budget will use overly optimistic economic assumptions. Regardless of how you feel about the budget and the assumptions it's based on, that's certainly not a mistake you want to make in your own planning. After all, the government can simply pass on any mistakes to current or future taxpayers, but we have no such luxury. Here are some overly optimistic assumptions that...

February 27, 2017
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27Feb

Retired Teamster to meet with Paul Ryan, Bernie Sanders in hopes of saving crumbling retirement fund

Faced with a potentially devastating meltdown of their pension fund, retired Teamsters across the country are mobilizing to save themselves. Across 37 states — mainly in the Midwest and South — ex-truckers who had hoped to be living out their retirement in a state of relaxation have turned to political activism, building a grassroots network that rivals anything put together by a professional operative. On Monday, retired Teamster Bob Amsden will show up again in Washington — a trip he's made...

February 27, 2017
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27Feb

Savers hoping for flexible retirement face working into late 70s, expert warns

Sir Steve Webb, a former pensions minister, warned that the dream of a flexible retirement where people gradually go part-time before giving up work entirely when it suits them could turn out to be a "mirage" - if people only contribute minimum amounts into their workplace pension pot. Sir Steve, who is now director of policy at Royal London, said an average worker wanting a "gold standard" of retirement - where their pension income equates to two-thirds of pre-retirement levels...

February 27, 2017
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