April 2022
25Apr

Ghana. Steady rise recorded in life expectancy of SSNIT contributors

Regardless of the widely held notion on decreasing life expectancy among Ghanaians, the Social Security and National Insurance Trust (SSNIT) says its statistics indicated a reverse of the widely held misconception. It said longevity on the pension’s payroll indicates a steady rise in life expectancy of contributors aged 72 from eight per cent in 2002 to 18 per cent in 2010 and 25 per cent in 2020. Likewise, the percentage of contributors aged 80, rose from one per cent in 2002...

April 25, 2022
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15Apr

Bad Retirement Savers Expect to Die Young

By Allison Bell What workers think about their retirement savings is closely related to how long they think they will live, according to a new Club Vita life expectancy survey. Workers who said that their savings would be enough to pay for a comfortable retirement agreed with Club Vita about how long they might live. Workers who said their savings would be too small to pay for a comfortable retirement predicted that they would die about 7.1 years earlier than Club Vita would have...

April 15, 2022
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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
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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
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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
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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
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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
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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
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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
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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
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