May 2019

29May

US. New Bill Would Conduct the Largest Investigation of Private Pensions in 40 Years

Bipartisan US senators are proposing legislation in an effort to secure workers’ retirement benefits in the long run, through the formation of a new retirement commission that would guide private retirement plans to a more sustainable future. Coined the Federal Retirement Commission Act, Sens. Todd Young, an Indiana Republican, and Cory Booker, a New Jersey Democrat, would create a group responsible for reviewing private benefit programs and submitting to Congress recommendations on how to improve or replace the programs....

May 29, 2019
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29May

US. Public Pensions Had a Good Q1

The country’s 100 biggest public defined benefit pension plans experienced a funding increase of $185 billion in the first quarter, thanks mainly to robust investment gains of 7.3% in aggregate, Milliman, a consulting and actuarial firm, reported Monday. This improvement was the largest quarterly funding increase since Milliman rolled out its public pension funding index in September 2016. It came on the heels of the biggest quarterly decrease of $306 billion in the fourth quarter. Milliman estimated that first...

May 29, 2019
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27May

The End Of Risk-Free Retirement

Saving money for retirement has never been easy for the average worker, but at least it was feasible. Until 2000 or so, it was a simple matter to put all your savings in CDs, Treasury bonds, or tax-free muni bonds and generate a steady income. Better yet, you could do this with no risk, just by keeping your money in FDIC-insured banks. This is not possible today due to low rates. Neither you nor a massive pension plan acting...

May 27, 2019
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24May

Will the Financial Fragility of Retirees Increase?

By Steven A. Sass Retirees have long been considered financially fragile. The notion that they are ill-equipped to absorb financial shocks is captured in the traditional trope that they live on fixed incomes. Going forward, retirees will get much less income from fixed Social Security and employer pensions, and much more from savings in 401(k) plans and individual retirement accounts (IRAs). These savings give retirees greater flexibility to respond to shocks. But tapping into their nest eggs comes at...

May 24, 2019
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24May

US. House passes SECURE retirement bill with massive bipartisan support

The House of Representatives passed a sweeping retirement bill Thursday that makes it easier for small businesses to offer a workplace retirement plan, eases use of annuities in 401(k)s and raises the required minimum distribution age, among other changes. The Setting Every Community Up for Retirement Enhancement Act, passed the House on a 417-3 vote and now heads to the Senate, where it is expected to pass by the end of the current legislative session. If the bill becomes...

May 24, 2019
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20May

US. Is Our Health Care Spending Worth It?

Many people know by now that the United States spends much more on health care than any other country, and that health outcomes are not a lot better (and in many instances worse). That raises the question: Is our health care spending actually worth it? It’s tricky to figure out the extent of the roles that the environment, genetics and social support play in improving health. Nevertheless, the best evidence tells us that health care is still very valuable,...

May 20, 2019
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17May

Lawmakers see momentum for bills promoting workplace retirement plans

As lawmakers work to put the finishing touches on legislation that would give employers new flexibility in their retirement plans, members of the Senate are looking ahead to new bills to further encourage workplace savings. Members of the Senate Finance Committee say they are hopeful about getting some version of the Retirement Enhancement and Savings Act to the president's desk this year. If the measure became law, businesses in varied industries could band together in multi-employer plans and would...

May 17, 2019
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14May

82% of Americans Are Making a Massive Retirement Planning Mistake

If you get a sinking feeling in your stomach when you think about your retirement finances, you're not alone. In fact, 75% of Americans report feeling only somewhat confident or not confident at all about their future financial health, according to a Fidelity survey . Respondents said they worry about outliving their assets, rising healthcare and living costs, and having to adjust their lifestyle to a fixed-income budget. There is a simple way to avoid this fate and to...

May 14, 2019
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13May

Uber, Lyft: Gig economy employees are facing a heightened retirement crisis

Americans are increasingly falling behind on their retirement savings, and it could be even worse for the millions working in the gig economy. Despite the overall gig economy booming with companies like Lyft (LYFT) and Uber (UBER) going public, the companies’ staunch resistance to meet drivers’ demands for full-time employment and benefits “has the potential” to worsen the retirement crisis, Chad Parks, Founder and CEO of Ubiquity Retirement + Savings told Yahoo Finance. “To the best of our knowledge,...

May 13, 2019
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13May

US. Private equity’s allure poses big risks for the stock market and its investors in the next recession

Private equity has taken center stage in active investing, and that means the stock market and its investors could face more challenges — especially in a recession. The transition is already underway and according to asset manager AllianceBernstein, won’t be ending soon. In a note to clients this week, the firm outlined an upcoming decade in which the “main expression of active investing” is in private markets. Analysts say this shift introduces potential problems. Liquidity could dry up in...

May 13, 2019
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