February 2020

07Feb

How Do Children Affect the Need to Save for Retirement?

By Andrew G. Biggs Children consume a substantial portion of a household’s income while living at home, but are usually financially independent by the time the parents reach retirement age. Relatively little attention has been paid to how children affect parents’ need to save for retirement. In this paper I use expenditure data from the Panel Study of Income Dynamics to construct life cycle expenditure patterns from households with children and childless households, comparing the two to gain insights...

February 7, 2020
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January 2020

31Jan

28% of Americans in Their 60s Are Extremely Short on Retirement Savings

Though there's no magic savings number that guarantees financial security during retirement, as a good rule of thumb, it's smart to close out your career with about 10 times your ending salary socked away. The reason? Social Security will only replace about 40% of the income you're used to if you're an average earner. If you're a higher earner, it will replace even less. Meanwhile, most seniors need considerably more than 40% of their former paycheck to stay afloat...

January 31, 2020
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30Jan

US. New York State pension fund puts 27 coal companies under review

New York state’s top pension fund official said it was reviewing whether to divest from 27 coal companies and could make decisions on $98 million in holdings within two months. The reviews by the third-largest U.S. state pension system, with $211 billion under management, could set the tone for other retirement plans facing public concerns about climate change. New York State Comptroller Thomas DiNapoli in an interview on Tuesday said his office began reaching out several weeks ago to...

January 30, 2020
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29Jan

How the Longevity Project Is Reimagining Our Longer Lives

As life expectancies are growing and the 100-year-life is becoming more common, how can Americans, the U.S. government and employers best prepare for the challenges and opportunities of longevity? Meet the Longevity Project, the new initiative designed to come up with some answers. The Longevity Project, developed in collaboration with the Stanford Center on Longevity (its lead content creator), is generating research and engaging in public conversation on the many impacts of longer lives. It just released a poll...

January 29, 2020
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28Jan

US. Public Pensions Reducing Fee Outlays to Improve Efficiency

Public retirement systems are squeezing down their expenses to operate more efficiently, according to an annual study by the National Conference on Public Employee Retirement Systems. Read also 28% of Americans in Their 60s Are Extremely Short on Retirement Savings The 2019 NCPERS Public Retirement Systems Study, based on responses from 155 state and local pension systems, shows that trustees, managers, and administrators are working to ensure funds’ fiscal and operational integrity, according to Hank H. Kim, executive director and...

January 28, 2020
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28Jan

US. What Are The Solo 401(k) Contributions Limits For 2020?

For those of you who are working as independent contractors or small business owners, you may benefit from contributing to a small business retirement plan. One plan that allows for the largest pre-tax contribution is the Solo 401(k). Tax planning for your business may be the difference between turning a nice profit and barely keeping the doors open. Similarly, making smart tax moves may free up more money to save for a secure retirement. Using a Solo 401(k)...

January 28, 2020
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24Jan

New York City Takes ‘Major US. Next Step’ on Fossil Fuel Divestments

Meketa Investment Group has been selected to evaluate options and develop a prudent divestment strategy from fossil fuel companies in alignment with the fiduciary duties for New York City’s largest pension funds, the city’s mayor and comptroller announced. “While the Trump administration fails to address global warming as the crisis it is, New York City is taking action,” said Mayor Bill de Blasio. “We are dedicated to delivering what we owe to our children and grandchildren, which is why...

January 24, 2020
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08Jan

MidEast Retreats as Investors Steer Clear of Most-at-Risk Region

Middle Eastern markets can hardly be accused of complacency over the latest surge in regional tensions, even if global investors are taking a more relaxed view of events. The region accounts for three of the world’s 10 worst-performing equity indexes since the U.S. drone attack that killed Iran’s General Qassem Soleimani last week, while the dollar-denominated bonds of Iraq, Lebanon, Bahrain, Egypt and Oman are among the 10 biggest losers in emerging markets. Read Also Us public pension funding crisis...

January 8, 2020
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07Jan

Athene Closes $6 Billion in Pension Risk Transfer Transactions During 2019

Athene Holding Ltd. ("Athene") (NYSE: ATH), a leading retirement services company, announced it has reached approximately $6.0 billion in total pension risk transfer (PRT) transactions for 2019, which includes approximately $800 million from a recently completed funded reinsurance transaction with a leading U.K. insurance company. Under the terms of Athene’s inaugural transaction in the U.K. market, which closed December 19, 2019, the Company will reinsure a block of pension benefit liabilities through its wholly owned subsidiary Athene Life Re...

January 7, 2020
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06Jan

US. Public Pension Funding Crisis: Why Should Today’s Workers And Retirees Pay The Price?

Here are some excerpts of interest from a May 26, 1965 Chicago Tribune story, “Police, Fire Pensions Tabled”: “Three important police and firemen’s pension bills appeared defeated today but efforts may be made to revive one which would consolidate 335 pension systems outside of Chicago. . . . “Robert Erickson, a spokesman for the Civic federation, Chicago taxpayers’ organization, was happy when two tax-increasing bills were tabled by their sponsors. “One would have required a property tax boost to...

January 6, 2020
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