June 2024

US. Gen X is the least confident about retirement as ‘crunch time’ nears—and has done less to prepare than boomers or millennials

The cohort once derided as the “slacker generation” is about to start heading into retirement, and many Gen Xers aren’t feeling so optimistic about it after not doing as much to get ready. Only 62% of Gen Xers feel confident about “being able to financially support all the things they want to do in life,” according to Allianz Life Insurance’s 2024 annual retirement study. That’s well below baby boomers (82%) and millennials (77%). To be sure, the simple fact that Gen X...

Health Equity & LGBTQ+ Older Adults of Color. Engaging individuals, communities and organizations

By National Resource Center on LGBTQ+ Aging This report highlights how state, local community organizations, funders and healthcare providers can make innovative impacts in health equity. We are living in a vastly different world than that of 2013, and this section highlights some of the present-day context within which we are doing this work. The United States is becoming older and more diverse. Yet, how we often talk about and intervene on issues related to diversity in aging continues to fall short...

3M to transfer pension-payment obligations for 23,000 U.S. retirees

3M to book a charge of nearly $1 billion as it transfers some of its pension obligations to Met Tower Life 3M Co. said Thursday it will transfer about $2.5 billion of its pension-payment obligations to Metropolitan Tower Life Insurance Co. The consumer- and industrial-products company (MMM) said the transfer, which will affect the pension payments of about 23,000 U.S. retirees, won't change the amount of the monthly benefit payments. The only change is who is making the payments. 3M, which makes...

US. House Republicans accuse ESG-focused pension funds, other investors of antitrust violations

Partisan differences were clear at a House hearing June 12, when Republicans accused CalPERS, Arjuna Capital and other institutional investors that consider environmental, social and governance factors of violating antitrust laws. The hearing followed the release of an interim report on June 11, in which Republicans on the House Judiciary Committee said pension funds, asset managers, proxy-advisory firms and environmental groups are coordinating a “climate cartel” to force companies to‘“decarbonize” and “reach net zero.” “The climate cartel is engaged in anti-competitive collusion...

Funded Status of U.S. Corporate Pension Plans Continues to Improve in May

In May, the financial health of U.S. corporate pension plans experienced a marked improvement, continuing a positive trend seen over the past five months, according to a round-up of the country’s pension watchers. The main reasons for the positive funding trends in May across various corporate defined benefit plans included positive economic indicators, strategic investment approaches such as cash-flow-driven strategies and resilience in market performance despite lower interest rates. “May’s improvement is the fifth month in a row of funded ratio...

US. Un fondo de pensiones de California se opone a que Tesla pague a Musk 50,000 millones

El poderoso fondo de pensiones de los profesores de California (CalSTRS en inglés) reveló este lunes que votará contra la propuesta de otorgar al consejero delegado de Tesla, Elon Musk, un paquete de compensación valorado en más de 50,000 millones de dólares. En declaraciones a la cadena CNBC, el director de inversiones de CalSTRS, Chris Ailman, calificó el paquete, en forma de opciones sobre acciones de Tesla, acordado entre el consejo de administración de Tesla y Musk en 2018 como "ridículo". Ailman afirmó que el fondo ya se opuso al pago la primera vez que fue presentado en 2018 y que volverá a votar en contra...

AT&T Seeks Dismissal From Two Lawsuits Targeting PRT Deal with Athene

AT&T Inc. filed a motion to dismiss two lawsuits against the company Wednesday that accused both AT&T and its independent fiduciary, State Street Global Advisors Trust Co., of selecting a “risky” third-party insurance company—Athene Annuity and Life Company—to conduct its $8.05 billion pension risk transfer in May 2023. The retirees who filed the two lawsuits against AT&T claimed that selecting Athene was not a safe annuity choice for ERISA fiduciaries. But the company’s filing argued that AT&T did not make...

US. Young Savers Report Higher Confidence in Retirement Planning

A new report reveals positive momentum by Gen Z and Millennials in seizing the initiative early to get their savings on track. According to Goldman Sachs Asset Management’s (GSAM) “Diving Deeper into the Financial Vortex: The Generational Divide,” Gen Z and Millennials are off to a good start, but they apparently are already feeling the effects of competing financial priorities and may need some help with retirement planning assumptions. The report, which is a supplement to the firm’s annual retirement report,...

US Pension Fund’s Interest in Bitcoin: FOMO or a Future-Proof Strategy?

The State of Wisconsin Investment Board recently announced the purchase of $99 million worth of IBIT shares, BlackRock’s spot Bitcoin ETF. This marks the first investment in Bitcoin ETF shares by a public pension fund. While this is the first time a state pension has bought shares of a Bitcoin ETF, it’s not the first bitcoin investment by a pension fund. In October 2021, the Houston Firefighters' Relief and Retirement Fund acquired an undisclosed amount of BTC through institutional bitcoin...

US pension plans are disappearing but there are alternatives

Over the past few decades, a significant shift has occurred in the landscape of retirement planning in the United States. The traditional “defined benefit” retirement plans, commonly known as pension plans, have become increasingly rare. These plans provided retirees with a guaranteed benefit, typically in the form of a fixed monthly or yearly payment. In their place, “defined contribution” plans, such as 401(k) plans, have become the norm. These plans focus on specified contributions, with the eventual retirement benefits depending largely on the performance of the investments made with those contributions. The current state...