August 2022
11Aug

Labor Supply Flexibility and Portfolio Selection with Early Retirement Option

By Junkee Jeon & Jehan Oh In this paper, we study an optimal consumption and investment problem of an economic agent who can choose flexible labor supply and an option to early retire in the existence of mandatory retirement date. We model the agent's preference as the Cobb-Douglas utility, which is a function of consumption and leisure, and consider the agent's unit wage rate as a stochastic process. The optimization problem has a feature of combining both stochastic control and...

August 11, 2022
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11Aug

U.S. University launches degree that prepares students to address aging society’s growing health care needs

UTSA will launch a new bachelor of science degree program in Health, Aging & Society this fall. The new program, which will be offered through the College for Health, Community and Policy (HCAP), will be the first of its kind in the San Antonio area and is designed to address the growing need for health care support occupations and community- and social-service professionals. Students will learn critical skills to begin a career focused on managing and coordinating hospitals, nursing homes...

August 11, 2022
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09Aug

June Slump Causes $262 Billion Drop in U.S. Public Pensions’ Assets

Large public pension funds had a difficult second quarter, as the 100 largest U.S. public pension plans lost a combined $262 billion in funding during June, according to actuarial and consulting firm Milliman. The deficit between the estimated assets and liabilities widened to $1.521 trillion at the end of the month from $1.259 trillion at the end of May, as the public funds’ asset value dropped to $4.318 trillion from $4.566 trillion. crisisRead also U.S. public pensions suffer worst year since...

August 9, 2022
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08Aug

US. Working in Retirement? Here’s Why It’s Great — and Why It’s Really Not

Retirement can mean different things to different people. For some, it's the time to travel the world and do the things they've always wanted but never had the chance to do. For others, it's the time to do absolutely nothing after working for decades. And for other people, it could mean continuing to work, just at their own discretion. There are no rules about the right way to retire. So if you somehow find yourself working during retirement, it's not...

August 8, 2022
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04Aug

Coca-Cola Consolidated to terminate primary U.S. pension plan

Coca-Cola Consolidated Inc., Charlotte, N.C., plans to terminate its primary U.S. pension plan. The consolidated bottling company said it began the process of terminating the plan during the first half of 2022, according to its 10-Q filing with the SEC on Tuesday. Read also CF Industries offloads $375 million in U.S. pension liabilities In the filing, the company said it plans to offer a lump sum to "certain plan participants" before completing the purchase of a group annuity contract from an insurance...

August 4, 2022
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04Aug

U.S. corporate pension plan funding holds steady in July above 93% – 3 reports

U.S. corporate pension plan funding ratios remained relatively stable in July after months of poor investment returns had negatively affected the health of the plans, according to three new reports. Legal & General Investment Management America in its report estimated the average funding ratio of the typical U.S. corporate pension plan rose to 95% as of July 31 from 94% a month earlier. LGIMA in its latest Pension Solutions Monitor cited positive equity returns during the month, noting the S&P 500...

August 4, 2022
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02Aug

US. Average Public Pension Assumed Rate of Return Hits 40-Year Low

The average investment return rate assumption for U.S. public pension funds has fallen below 7.0%, to its lowest level in more than 40 years, according to the National Association of State Retirement Administrators. Among the 131 funds that NASRA measured, more than half have reduced their investment return assumption since fiscal year 2020 as rising interest rates and other factors have contributed to more volatile investment returns. For the 30‐year period that ended in 2020, public pension funds accrued approximately $8.5...

August 2, 2022
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01Aug

U.S. 6-month period brings financial storm for many

Defined contribution money managers, like their plan sponsor clients and the millions of U.S. workers who save for retirement with them, are navigating a much different world in mid-2022 than they did at the end of 2021. "Certainly, these six months have been very different than last year and the year before, which is really quite a statement when you think that in the last two years we were in the middle of a pandemic," said Anne F. Ackerley, New...

August 1, 2022
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July 2022
29Jul

U.S. pension promises will go unmet without sweeping reform

This year, anybody receiving an annual statement from America’s mighty social security system might notice a tiny ticking time bomb — if they possess sharp eyes. Tucked into a footnote is a website link that explains that the two funds in this system — called “Disability Insurance” and “Old Age and Survivors Insurance” — have $2.9tn to plug the shortfall between expected payouts and what is gathered each year from payroll taxes. Those trillions sound soothingly big. But they are...

July 29, 2022
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28Jul

The 2022 BlackRock Read on Retirement

By BlackRock Retirement savings isn’t always an even playing field, but as an industry we can seek better outcomes. That’s why we’ve reimagined our DC Pulse survey to provide a more accurate “Read on Retirement” and what it means for more and more people. The pandemic caused people to rethink what they need for retirement, and inspired employers to offer more strategies to help employees save for the short and long-term. Yet not everyone has access to a workplace plan, and...

July 28, 2022
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