August 2018

06Aug

UK. Investing for the 100-year life: How to model income in retirement

Financial planning experts have urged advisers to stay up to date with how they model income in retirement as life expectancy, health and working patterns continue to shift among the older population. In the first of our new roundtables with Vitality as part of our Value Exchange project, we gathered specialists in cashflow planning, behavioural economics and financial education to discuss how advisers can meet the challenges of clients banks that are living healthier, and living healthier for longer. Founder of...

August 6, 2018
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06Aug

Nigeria. Why some retirees earn lower pensions

Pensions earned by a retiree under the Contributory Pension Scheme can be affected by the number of years the worker must have made contributions into the Retirement Savings Accounts. The Managing Director, IEI-Anchor Pensions, Mr Glory Etaduovie, said this while making a presentation on the pension industry in Lagos. He said, “There appears to be a dislike by some civil servants for the Contributory Pension Scheme because it is thought that it pays lower than the defined benefits scheme. This leads...

August 6, 2018
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06Aug

US. 1 in 3 millennials tapped retirement funds for a down payment, study says

Millennials want their dream home. Fifty-six percent of the millennials polled in a new survey from the Bank of the West said owning a home was more of a priority than paying off debt or retiring comfortably. The survey, which included more than 1,000 people, also found that nearly one in three millennial homeowners borrowed money from their retirement funds for a down payment. Is this a smart financial strategy? Justin Moundas, a real estate agent with Douglas Elliman in Manhassat,...

August 6, 2018
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06Aug

Most Americans plan to own homes in retirement, but that might be a mistake

We all have our own respective visions of what life in retirement will look like. For the bulk of Americans, however, that means owning a home. In fact, 85% of current workers say they plan to own during their golden years, according to new data from Voya Financial, while 79% of current retirees are property owners. But while owning during retirement has its benefits, there's one major drawback to also be aware of. Why own during retirement? There are several good...

August 6, 2018
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06Aug

US. Why Owning A Home Can Be A Valuable Retirement Asset

Is home ownership a mistake in retirement? That’s what this article in USA Today claims. In continuing the theme of my last article about not believing everything you read in personal finance, let’s look at some reasons why owning a home free and clear of a mortgage can be one of the best assets you can have in retirement: Your variable costs are lower As the article points out, it’s true that property taxes and maintenance costs increase over time with...

August 6, 2018
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03Aug

US. Would Universal Savings Accounts cannibalize retirement plan contributions?

In the coming days, Rep. Kevin Brady, R-TX, chair of the House Ways and Means Committee, is expected to circulate a discussion draft of a Tax Reform 2.0 bill with an eye to advancing a floor vote in the House this September. The bill is expected to include a provision creating Universal Savings Accounts, which would allow any American age 18 or older to invest after-tax dollars that could grow tax-free and be withdrawn for any purpose, at any time,...

August 3, 2018
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03Aug

Ireland. Using pension pots to buy homes makes sense – and will boost enrolment rate

Large numbers of Irish people are not saving for retirement, and the Government is taking the very sensible step of ensuring that, from 2022, workers are automatically enrolled into a pension plan. Anyone who wishes to opt out will be able to do so, but the hope is that most people will be gently nudged onto a path towards a decent standard of living in retirement. To minimise the numbers opting out, people must be convinced that pensions are genuinely attractive....

August 3, 2018
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03Aug

British expat retirees warned over leaving pensions in sterling

The average pension pot for UK expat overseas is around £210,000, but currency fluctuations may cause losses of 20 per cent. A recent analysis of the plunging pound’s effect on British pensions paid in sterling on behalf of UK expats living overseas gives bad news for the estimated 247,000 Brit retirees living abroad. Put bluntly, pensions held in sterling but drawn in foreign currency via ATMs or bank to bank transfers are permanently open to currency exchange fluctuation risks. In...

August 3, 2018
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03Aug

US. Public Pensions Are a Disaster. Here’s a Fair Solution

Connecticut is at the cutting edge of a crisis unfolding across the U.S.: States and municipalities have promised their employees some $4 trillion in pension benefits that they can’t afford to pay. Now the state needs to help lead the way out, by setting aside partisan politics and moving to a better system. Thanks to decades of mismanagement by politicians from both parties, Connecticut has one of the largest pension funding deficits in the country, amounting to one fifth of...

August 3, 2018
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02Aug

Georgia. Galt & Taggart developed Government Pension Fund Calculator

The calculator is based on a new pensions savings scheme of the government and allows defining the estimated pension. Specifically, any interested individual using the calculator can identify the savings amount over the specific period. The calculator is given on the Galt & Taggart official website. “By developing the calculator the Galt & Taggart team gave the possibility to the savings scheme participants to calculate their estimated accrued pension. We take into account almost all the nuances of the pension...

August 2, 2018
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