May 2021
07May

A Third Of Seniors Seek To Work Well Past Retirement Age, Or Won’t Retire At All, Poll Finds

More Americans plan to work past the age of 70 – or never retire at all – according to a survey released Thursday by reverse mortgage lender American Advisors Group, suggesting the pandemic prompted many aging Americans to rethink their retirement strategies in order to maintain their living standards. Almost half (46%) of the more than 1,500 Americans aged 60 to 75 surveyed by AAG said they plan to work part-time after they retire from full-time work. Nearly one-fifth (18%) of...

May 7, 2021
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06May

S&P 1500 Pension Funded Status Increased by 1 Percent in April

By Mercer The estimated aggregate funding level of pension plans sponsored by S&P 1500 companies increased by 1 percent in April 2021 to 96 percent as a result of an increase in equity markets, slightly offset by the decrease in discount rates. As of April 30, 2021, the estimated aggregate deficit of $102 billion USD decreased by $16 billion USD as compared to $118 billion USD measured at the end of March according to Mercer,[1] a global consulting leader and...

May 6, 2021
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06May

U.S. corporate pension funding inches up in April – 3 reports

Funding ratios for U.S. corporate pension plans increased in April, according to reports from Wilshire Associates, Legal & General Investment Management America and Mercer. All three firms noted strong equity markets as the primary driver for the increases, partially offset by a decrease in discount rates leading to rising liability values. Wilshire's monthly report said U.S. corporate pension plans' aggregate funding ratio rose 0.6 percentage points to 92.9% in the month ended April 30. The change was the result of a...

May 6, 2021
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06May

US birth rate falls 4% to its lowest point ever

The American birth rate fell for the sixth consecutive year in 2020, with the lowest number of babies born since 1979, according to a new report. Some 3.6 million babies were born in the US in 2020 - marking a 4% decline from the year before, found the US Centers for Disease Control and Prevention (CDC) National Center for Health Statistics. The slump was seen across all recorded ethnicities and origins, according to the findings. The national picture mirrors a decline in...

May 6, 2021
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04May

Surging Stocks Improve Pension Funding Levels, But De-Risking Isn’t at Risk

A strong stock market delivered the goods and then some for pension funding levels, both public and corporate, in the first quarter. But don’t expect companies to pull back from their campaign to shift into safer (if low-paying) bonds from stocks. That’s the conclusion from JPMorgan’s global market strategy team, which noted in a report that this development didn’t mean that corporate plans would ease up on their de-risking—that is, moving into bonds from stocks. Reason: Company defined benefit (DB)...

May 4, 2021
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April 2021
29Apr

What Explains Low Old-Age Income? Evidence from the Health and Retirement Study

By Olivia S. Mitchell, Robert L. Clark, Annamaria Lusardi We examine respondents in the Health and Retirement Study (HRS) to observe how their financial situations unfolded as they aged. We focus on low income older adults and follow them over time to identify the factors associated with having low income at baseline and thereafter. We find that (a) real income remained relatively stable as individuals approach and enter retirement, and progress through their retirement years, and (b) labor force participation...

April 29, 2021
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29Apr

US. Wall Street Bets Bigger on ESG as Sustainability Takes Hold

The greed-is-good ’80s power brokers are long gone, replaced by a generation of investors that at least present themselves as kinder, gentler and more environmentally and socially conscious. Read also NY State Pension Commits to $400 Million in Sustainable Investments But the almighty dollar — maybe a little less than omnipotent now — is still the tool of the trade on Wall Street and the big money players are using their influence to steer companies to a better future with a...

April 29, 2021
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28Apr

US. Multiple Employer Pension Plans May Need to Brace Themselves for Lawsuits

Multiple employer pension (MEP) plan sponsors should brace themselves as a potential target for litigation as the plans continue to emerge as a provider-based alternative to single-employer 401(k) plans, according to consulting firm October Three. In a recent article, the firm said that as MEPs begin to accumulate participants and assets, it is “inevitable that plaintiffs’ lawyers will train their sights on MEPs as a fiduciary litigation target” with the “the same sort of fiduciary litigation that has afflicted the...

April 28, 2021
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28Apr

US. What’s Happened to Retirement Expectations During the Pandemic?

More than a year after the start of the COVID-19 pandemic, workers are focusing on the future—including sizing up how their prospects for retirement have changed. For many, the pandemic hasn't harmed their finances and may have increased their ability to save, given fewer spending opportunities. Meanwhile, others found it necessary to withdraw funds from their retirement account so they could pay their bills. A Roller Coaster Year According to Fidelity Investments' 2021 State of Retirement Planning Study: 82 percent of workers in...

April 28, 2021
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27Apr

NY State Pension Commits to $400 Million in Sustainable Investments

The $247.7 billion New York State Common Retirement Fund has committed approximately $400 million to two funds as part of its Sustainable Investments and Climate Solutions (SICS) Program. The commitments are part of New York State Comptroller Thomas DiNapoli’s climate action plan to lower investment risks from climate change and help shift the pension fund to net-zero greenhouse gas emissions within the next 20 years. “While climate change poses investment risks, it also creates opportunities for the state pension fund to...

April 27, 2021
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