April 2022

Retirement Plan Participants Want Their Investments to Make a Difference
12Apr

Retirement Plan Participants Want Their Investments to Make a Difference

Plan sponsors might consider building an investment lineup to meet the growing demand for sustainable options from defined contribution retirement plan participants. Nearly three-quarters (74%) of retirement plan participants said they would increase their contribution rate if offered sustainable investments, compared to 69% in 2021, according to the Schroders 2022 U.S. Retirement Survey. They said they want their investments to be aligned with their values (87%), and that they see environmental, social and governance investments as a driver of performance...

April 12, 2022
News, , ,
Read more...
Heterogeneity in Household Spending and Well-being around Retirement
11Apr

Heterogeneity in Household Spending and Well-being around Retirement

By Patrick Moran, Martin O'Connell, Cormac O'Dea, Francesca Parodi & Michigan Retirement and Disability Research Submitter. We study heterogeneity in spending patterns around the time of retirement. Using rich consumption data from the Panel Study of Income Dynamics, and exploiting within-household spending variation, we systematically classify households into groups characterized by differences in consumption transitions at retirement. We decompose the overall spending changes into the contribution made by different subcomponents of consumption. We find that the households that increase their...

April 11, 2022
Adequacy, Articles, ,
Read more...
How to Get Americans to Save for Retirement
08Apr

US. How to get people to save for retirement

The House voted 414-5 on March 29 to pass the Securing a Strong Retirement Act, or “Secure Act 2.0,” hailed in news reports as legislation that would “change the way Americans save for retirement” by requiring that employees be automatically enrolled in work retirement plans. Yet if enacted, Secure 2.0 would increase Americans’ annual retirement contributions by less than 0.2% in 10 years. Secure 2.0’s modest gains are thanks mostly to Republicans—who also have the biggest stake in making...

April 8, 2022
News, , ,
Read more...
08Apr

UK. Penfold: London weighting – how the capital is adopting better saving habits

New research released today from Penfold, the digital pensions platform, reveals Londoners are the least likely group in the UK to spend more than they save each month, despite the higher cost of living in the capital. Half (50%) of those in London say they spend more on non-essentials including eating out and events, the lowest of any region and compared to 64% of people in the East Midlands, 66% in Wales and 62% in the South East (see...

April 8, 2022
News, ,
Read more...
06Apr

UK. Most auto-enrolment pension savers and employers are still anchored to the minimum rate

It’s nearly 10 years since automatic enrolment was launched amid great fanfare; TV adverts featuring famous bosses such as Baroness Brady and Theo Paphitis were part of a huge Government drive which has seen 10.6 million workers enrol in a workplace pension scheme, saving an additional £28.5bn towards their futures. Despite this rip-roaring success, there remains the question of whether the average auto-enrolment member is saving enough for the retirement they want. The Pension Commission, which paved the way for auto-enrolment,...

April 6, 2022
News, , ,
Read more...
US. Saving for Retirement Is Harder Than It Should Be
05Apr

US. Saving for Retirement Is Harder Than It Should Be

The U.S. government has long offered myriad contrivances and enticements to get Americans to save enough for a comfortable retirement — so far with woefully inadequate results. But why should it be involved at all? Why can’t people be responsible enough to prepare for an entirely foreseeable event? There are two answers. First, people turn out to be pretty bad at thinking about the distant future: It seems our brains aren’t wired for it. Second, compounding that problem, the financial...

April 5, 2022
News, , ,
Read more...
04Apr

UK. Majority of young savers adverse to risk in their pensions

Just over a quarter (26 per cent) of savers aged 18-30 feel they can afford to take on some risk with their pensions, even though they are many years away from retirement, new analysis from PensionBee has revealed. The survey, which included responses from over 500 British savers, discovered that only 7 per cent of young savers reported that they were currently invested in a high-risk pension scheme, despite having the longest time horizon to recoup any losses. PensionBee also found...

April 4, 2022
News, , ,
Read more...
US. Saving for retirement is the top financial priority for just 17% of adults, survey shows
01Apr

US. Saving for retirement is the top financial priority for just 17% of adults, survey shows

Saving for retirement appears to be taking a backseat to other financial considerations for many Americans right now. Just 17% have made saving for their post-working years their top financial priority for 2022, according to First National Bank of Omaha’s latest financial wellness survey. This is despite 59% of respondents worrying that they won’t be able to retire by age 65. Additionally, 46% of those surveyed said they have less than $15,000 saved for retirement. The survey was conducted in February...

April 1, 2022
News, , ,
Read more...

March 2022

Ireland. State to pay €1 for every €3 a worker puts into new auto-enrolment pension scheme
31Mar

Ireland. State to pay €1 for every €3 a worker puts into new auto-enrolment pension scheme

About 750,000 workers who do not currently have a pension will be enrolled in a new workplace pension scheme from January 2024, it has been announced. The Cabinet has agreed its long-awaited auto-enrolment pension scheme, which will cost the taxpayer €3 billion in its first year. Social Protection Minister Heather Humphreys has said this pension scheme will operate in addition to the State pension and will kick in at retirement age which is currently 66. The State will pay €1 for...

March 31, 2022
News, , ,
Read more...
China:National Pension Insurance Co receives green light to start operations
24Mar

China: National Pension Insurance Co receives green light to start operations

The CBIRC has given approval to the newly established National Pension Insurance Company to commence operations, making it the 10th standalone pension insurer operating in China. The business scope of the new company includes: annuity insurance, life insurance, accident insurance, health insurance; reinsurance business of the above-mentioned businesses; management of clients' yuan and foreign-currency denominated funds for the purpose of old-age security, etc. The National Pension Insurance Co is set up to serve as an impetus for the development of the...

March 24, 2022
News, Slider, , ,
Read more...