October 2020

02Oct

US. Do Politics Belong in Retirement Planning?

In a sharply polarized environment, Americans saving for retirement are increasingly concerned about politics — those of their financial advisers. “I’ll get a phone call from one client thinking the world is falling apart, and then another thinking it’s the best time to get into the market — in the same day,” said Robert Schmansky, founder of Clear Financial Advisors in Livonia, Mich. It has been a year of tumult, because of not only the pandemic but also protests...

October 2, 2020
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01Oct

US. Trump Plan Would Restrict Retirement Plans from Sustainable Investments: Viewpoint

Interest in sustainable investing is soaring, as more people become convinced that making a positive impact can be profitable as well as good for the planet and society. Unfortunately, the Labor Department doesn’t think these investments belong in your 401(k). In June, the federal regulator proposed a rule that would restrict workplace retirement plans from investments that include environmental, social and governance considerations. Popularly known as ESG or socially responsible investing, this approach considers the sustainability of a company’s...

October 1, 2020
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01Oct

Income is a Primary Concern for Retirees

As life expectancy increases it’s only going to become more difficult for Americans to pay for their retirement. When 401(k) plans emerged 40 years ago, not much thought was given to how workers would use the money they accumulated. It has only been fairly recently that the concept of “retirement income” has taken shape, mostly in response to workers expressing deep concerns about what their futures might look like. This report looks at new ways to address retirement income...

October 1, 2020
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September 2020

29Sep

U.S. pension funds sue Allianz after $4 bln in coronavirus losses

Pension funds for truckers, teachers and subway workers have lodged lawsuits in the United States against Germany's Allianz, one of the world's top asset managers, for failing to safeguard their investments during the coronavirus market meltdown. Read also US. Trump Plan Would Restrict Retirement Plans from Sustainable Investments: Viewpoint Market panic around the virus that resulted in billions in losses earlier this year scarred many investors, but no other top-tier asset manager is facing such a large number of lawsuits...

September 29, 2020
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25Sep

US. Pensions Have Been Shunning Stocks at Their Own Peril

With the Fed signaling low interest rates for the foreseeable future, pension funds weigh bigger bets on equities Read also US. Pension Buyouts a Relative Bargain, Says Mercer Pension funds and endowments have been shifting away from the U.S. stock market for years. Some are now reconsidering that decision. Read also JPMorgan-backed Brazil fintech plans to expand in U.S., Mexico Individual investors, including younger traders using apps like Robinhood, have been playing a bigger role in the market lately. They’ve been buying...

September 25, 2020
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24Sep

The Role of IRAs in US Households’ Saving for Retirement, 2019

By Sarah Holden, Daniel Schrass This paper presents survey results on the incidence of IRA ownership in the United States and the activity of IRA-owning households. In mid-2019, 36 percent of US households owned individual retirement accounts (IRAs). More than eight in 10 IRA-owning households also had employer-sponsored retirement plan accumulations or had defined benefit plan coverage. All told, more than six in 10 US households had retirement plans through work or IRAs; three-quarters of near-retiree households did. In...

September 24, 2020
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24Sep

US. Pension Buyouts a Relative Bargain, Says Mercer

Now may be a good time for companies looking to de-risk their defined benefit (DB) pension plans to consider an annuity buyout, according to new data from consulting firm Mercer, which shows a hypothetical retiree buy-out transaction costs an estimated 97.7% of a plan’s accounting obligations. Mercer said the new data is a result of recent tweaking the company made to its US Pension Buyout Index, which tracks the relationship between the accounting liability for a defined benefit plan...

September 24, 2020
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18Sep

California Mandates Cannabis Companies to Provide Retirement Plans by September 30th

Yikes! Who knew?! Soon, ALMOST ALL California cannabis companies will have to offer a retirement plan of sorts (for ease of reference, the author refers to a 401(k) plan, but there are other types of plans). Cal. Code Regs. Tit. 10 § 10001. In fact, the deadline for cannabis companies with more than 100 employees is September 30, 2020. For cannabis employers with more than 50 employees, the deadline is June 30, 2021; for cannabis employers with five or...

September 18, 2020
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18Sep

Revised Mercer U.S. Pension Buyout Index Methodology Shows That Costs of Annuity Buyouts Could Be Less Than Accounting Liability

Mercer, a global leader in redefining the world of work, reshaping retirement and investment outcomes, and unlocking real health and well-being, and a business of Marsh & McLennan (NYSE: MMC), announces that the costs associated with annuity buyouts may be increasingly attractive, as Mercer data indicates that a hypothetical retiree buy-out transaction may cost 97.7% of the plan’s accounting obligations1. The discovery comes following enhancements introduced by Mercer to its U.S. Pension Buyout Index (the “Index”). Originally launched in...

September 18, 2020
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17Sep

US. DOL Issues Guidance for Including Lifetime Income Disclosures in Defined Contribution Benefit Plan Statements

As required by the SECURE Act of 2019, the U.S. Department of Labor (DOL) published an interim final rule requiring plan administrators of individual account plans (including 401(k) plans, 403(b) plans and other defined contribution plans) to express a participant’s current account balance as both a single life annuity and a qualified joint and survivor annuity income stream. These new disclosures are intended to help participants better understand how the amount of money they saved so far converts into...

September 17, 2020
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