May 2020
26May

The Arrival Of The ‘Unavoidable Pension Crisis’

By Lance Roberts I wrote an article in 2017 discussing the “Unavoidable Pension Crisis.” At that time, most did not understand the risk. Since then, the situation has continued to worsen. COVID-19 pandemic has likely triggered a rolling pension collapse over the next couple of years. This idea was discussed in more depth with members of my private investing community,Real Investment Advice PRO. Read also Allianz unveils the first edition of its Global Pension Report In 2017, I wrote an...

May 26, 2020
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07May

US. Public pension funds are a net gain for state and local revenue – study

Public pension funds were net revenue generators for state and local governments in 2018, surpassing taxpayer contributions by $179 billion, according to a biennial study released Tuesday by the National Conference on Public Employee Retirement Systems. That represents a 30.6% increase from the original study covering 2015-2016. In 2018, pension funds generated about $341.4 billion in state and local revenues through investments and retiree spending, while the taxpayer contribution to those pension plans was $162 billion. For...

May 7, 2020
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07May

US. Public pension funds are a net gain for state and local revenue – study

Public pension funds were net revenue generators for state and local governments in 2018, surpassing taxpayer contributions by $179 billion, according to a biennial study released Tuesday by the National Conference on Public Employee Retirement Systems. That represents a 30.6% increase from the original study covering 2015-2016. In 2018, pension funds generated about $341.4 billion in state and local revenues through investments and retiree spending, while the taxpayer contribution to those pension plans was $162 billion. For 40 states,...

May 7, 2020
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06May

What are the implications for pension funds coming out of coronavirus crisis?

By Janet Rabovsky Last August, I wrote about whether central banks were creating a financial bubble with their coordinated easing programs intended to spur economic growth and/or lift inflation. In January 2020, I wrote about the end of the economic cycle, the potential for a recession and what that might mean for positioning an investment portfolio. Little did I know, when I wrote these articles, that we would be experiencing further central bank action as a result of COVID-19,...

May 6, 2020
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06May

What are the implications for pension funds coming out of coronavirus crisis?

By Janet Rabovsky Last August, I wrote about whether central banks were creating a financial bubble with their coordinated easing programs intended to spur economic growth and/or lift inflation. In January 2020, I wrote about the end of the economic cycle, the potential for a recession and what that might mean for positioning an investment portfolio. Little did I know, when I wrote these articles, that we would be experiencing further central bank action as a result of COVID-19,...

May 6, 2020
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01May

US. How The Pandemic Is Making The Retirement Crisis Worse — And What To Do About It

The coronavirus crisis has torn the Band-Aid off the financial fragility of many Americans. With an unemployment rate between 15% and 20%, bank accounts draining, and the Dow down 23% in the first quarter, things are dreadful for millions of people. But Americans in their 50s and 60s nearing retirement may be among the most endangered. Many already weren’t on track for retirement, with little or no savings. Now, the COVID-19 downturn threatens to further undermine America’s vulnerable public...

May 1, 2020
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April 2020
30Apr

South Africa: The Rules Around Pensions in a Time of Mass Job Losses

In addition to the stress faced by employees who might lose their jobs during the crisis engendered by Covid-19, there is the added concern of whether their pension contributions will remain safe or fairly managed. The Financial Services Conduct Authority (FSCA) warned, at the end of March, that many distressed employers might default on their employees’ contributions to retirement funds, as a direct consequence of Covid-19’s impact on businesses and the economy. While the FSCA reminded the public that...

April 30, 2020
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30Apr

South Africa: The Rules Around Pensions in a Time of Mass Job Losses

In addition to the stress faced by employees who might lose their jobs during the crisis engendered by Covid-19, there is the added concern of whether their pension contributions will remain safe or fairly managed. The Financial Services Conduct Authority (FSCA) warned, at the end of March, that many distressed employers might default on their employees' contributions to retirement funds, as a direct consequence of Covid-19's impact on businesses and the economy. While the FSCA reminded the public that...

April 30, 2020
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29Apr

What the Economic Downturn Could Mean for Pension Plans

By Mark Miller Investing guru Bill Bernstein has compared investors in defined-contribution plans to airline passengers sent to the cockpit to fly the plane. Bernstein would much prefer a retirement system that relies on defined-benefit pensions, with their professional management and automatic participation. The unfolding coronavirus crisis underscores the value of professional pension pilots--and the structure of defined-benefit plans, which don't rely on short-term market performance to meet near-term obligations. The same claim cannot be made for the 401(k) or IRA...

April 29, 2020
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20Apr

US. We Need a New Social Contract for the Coronavirus

Our collective behavior will be the primary determinant of whether we can keep this virus in check. A team of infectious disease epidemiologists has calculated that we must reduce our social contacts by 65 percent from what they were before the virus started spreading. Everyone wants to get the country back to work, school, and together again as soon as possible. On Friday, the Trump administration announced it wants to do that in phases and allow each governor...

April 20, 2020
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