October 2021
18Oct

US. Trends in Retirement: Focus on Retirement Income

DC plans are addressing a wider range of participant circumstances via more customization, layered communications and programs that build financial resilience The impact of the COVID-19 pandemic and the ongoing variant spread has transformed the U.S. workforce, causing many to retire earlier than planned, others to retire later than planned, and adding to concerns about financial security across the board. For defined contribution plan sponsors, it has honed their participant retirement outcomes using a wider array of products and services,...

October 18, 2021
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14Oct

U.S. Labor Department proposes counter rule to Trump-era investment measures

The U.S. Department of Labor on Wednesday proposed a rule aimed to override a pair of Trump-era measures that had barred retirement and pension plans from considering climate change and other environmental, social and governance (ESG) factors when they select investments. Read also U.S. Labor Department proposes counter rule to Trump-era investment measures The DOL proposal, which is subject to a 60-comment period before it can be adopted, comes after the agency in March said it would not enforce the 2020...

October 14, 2021
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12Oct

US. Milliman analysis: Corporate pension funded ratio holds steady at 97.3% in September

Milliman, Inc., a premier global consulting and actuarial firm, today released the results of its latest Milliman 100 Pension Funding Index (PFI), which analyzes the 100 largest U.S. corporate pension plans. A rise in discount rates during September countered a 1.68% investment loss for corporate pensions, leaving the funded status of the Milliman 100 PFI nearly flat for the month. The market value of assets declined by $38 billion while the monthly discount rate climbed from 2.65% in August to...

October 12, 2021
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04Oct

Many Americans are facing a retirement savings shortfall

A new survey says 40% of Americans actually fear retirement more than death. The study found 87% of people fear not having enough income in retirement. The second biggest fear is losing health insurance. A variety of factors are influencing these fears. Many Americans are facing retirement savings shortfall and more than half worry about the future of social security. When deciding to retire, one of the biggest factors to consider is if you have enough money saved. To sustain...

October 4, 2021
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September 2021
29Sep

US. Bridging The Retirement Readiness Gap With Focused Financial Literacy

Most Americans are behind the curve when it comes to their retirement readiness. However, there’s a significant racial gap in retirement readiness — especially between white and non-white individuals. As of 2016, 48% of white Americans between the ages of 30 and 59 were projected to be unable to maintain their standard of living in retirement, compared to 54% of Black Americans and 61% of Hispanic Americans, according to an analysis by the Center for Retirement Research at Boston...

September 29, 2021
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27Sep

US. Hidden In The Reconciliation Bill: A Retirement Plan Mandate That Will Take Most People By Surprise

By Elizabeth Bauer Readers, I am embarrassed to admit that a radical change to our retirement system, tucked into the “Build Back Better” Budget Reconciliation bill, wholly escaped my notice until just recently. As explained by Ashlea Ebeling, also at Forbes, “Under the proposal, starting in 2023, employers with five or more employees would have to offer a retirement plan and automatically enroll employees, diverting 6% of their pay to a retirement account. An automatic escalation clause would increase the automatic...

September 27, 2021
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24Sep

US. Stock Market Helps State Pension Debt Hit 10-Year Low, But Crisis Still Looms Large

Thanks to historic investment returns over the last year, state public pension plans are in their best shape since the Great Recession. After state pension debt grew to more than $1.4 trillion last year, two new reports estimate that gap between the total amount states have promised to retirees and what they’ve actually set aside in their pension investment funds will shrink dramatically. A recent analysis by the Pew Charitable Trusts says the gap could dip below $1 trillion this...

September 24, 2021
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24Sep

US. New Bill Aims to Solve for the Retirement Plan Coverage Gap

Congressman Jim Himes, D-Connecticut, and Senator Mark Warner, D-Virginia, have introduced the Portable Retirement and Investment Account (PRIA) Act of 2021, designed to provide a retirement savings vehicle to Americans who don’t have access to one. Read also US. Stock Market Helps State Pension Debt Hit 10-Year Low, But Crisis Still Looms Large The legislation would establish a Portable Retirement and Investment Account (PRIA) Fund and a board responsible for establishing regulations for the fund. The bill says the board will...

September 24, 2021
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23Sep

When phased retirement could work out

Retirement doesn’t have to be a drastic cut from a full-time job to no job at all. You may still want to work, just not as much — especially if you aren’t financially ready to retire. The gradual reduction of hours known as “phased retirement” could be the answer, and it can be achieved either through an official policy at your employer or in a more informal fashion. In fact, 45% of U.S. workers envision reducing their work hours in a phased...

September 23, 2021
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22Sep

US. Milliman: Pension risk transfer premiums fall for second straight month

Pension risk transfer premiums fell slightly for the second month in a row in August, a study by Milliman showed. According to a report of the Milliman Pension Buyout index, the estimated buyout cost as a percentage of accounting liabilities (accumulated benefit obligation) was 102.2% as of Aug. 31, down from 102.3% as of July 31. That month's premium was down from 102.4% as of June 30. Meanwhile, the average annuity purchase rates among the most competitive rates remained steady in...

September 22, 2021
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