January 2024
12Jan

UK. Six key pensions issues and trends in 2024: How many will affect you?

Here are our thoughts on the key issues and trends for pension scheme employers and trustees in 2024. The year ahead will see some major changes to pensions law, with the abolition of the pensions lifetime allowance from 6 April 2024 as well as the introduction of a new funding regime for defined benefit schemes. We also consider the broader market trends we are seeing in relation to scheme surpluses, buy-outs, and a focus on the "end game" for...

January 12, 2024
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12Jan

US. Pension Plans in ’23: Glass Half Full—and Half Empty

“Best condition this century.” Or, “improved” but “fragile.” Both characterizations of the state of pensions in 2023. Which applies depends on which pension system one is talking about. Better, But… State and local pension plans saw improvement in 2023, but there is still plenty of room for more, according to Anthony Randazzo and Jonathan Moody in Equable’s research brief “The State of Pensions 2023,” which looks at how public pensions fared in the year that was. Randazzo and Moody write that the...

January 12, 2024
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11Jan

Most US Public Pension Funds Are Distressed, per Equable Report

Most state and municipal public pension funds are distressed or fragile, with funded ratios of less than 90%, according to the Equable Institute’s State of Pensions 2023 report, a year-end update. The report used the last reported data available from public pension funds. The report noted that at least 33 funds have not released year-end fiscal 2022 data. The report tracked 232 pension funds in the U.S. “Funding improvement in 2023 is both welcome and disappointing,” said the Equable Institute’s executive...

January 11, 2024
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10Jan

U.S. centenarian population is projected to quadruple over the next 30 years

The number of Americans ages 100 and older is projected to more than quadruple over the next three decades, from an estimated 101,000 in 2024 to about 422,000 in 2054, according to projections from the U.S. Census Bureau. Centenarians currently make up just 0.03% of the overall U.S. population, and they are expected to reach 0.1% in 2054. The number of centenarians in the United States has steadily ticked up since 1950, when the Census Bureau estimates there were just...

January 10, 2024
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10Jan

UK. Morningstar expects up to 300 funds to opt for sustainability label

Up to 300 funds are expected to assign themselves a sustainability label this year, as part of new rules from the UK’s financial regulator. In November, the Financial Conduct Authority (FCA) unveiled a labelling regime for investment products wishing to market themselves as considering environmental and social issues. It identifies four legitimate approaches, including targeting real-world impact and supporting companies that are transitioning to more sustainable practices. A report published today by research house Morningstar predicts that “about 300 UK open-...

January 10, 2024
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10Jan

Why Retirement Gets Better With Annuities

Everyone aspires to have a steady source of income after retirement that replaces as much as possible of their pre-retirement earning. But for many people, one big challenge in saving for that goal is to find the right financial product that accommodates their specific requirements, such as when they want to retire or how much more they need over and above their Social Security benefits. A new research paper by experts at Wharton and elsewhere solves that challenge with a...

January 10, 2024
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09Jan

U.S. pension risk transfer sales increased 39% in Q3 2023: report

U.S. pension risk transfer sales increased by 39 per cent during the third quarter of 2023, according to a report by LIMRA. It found single premium buyout sales were US$8.1 billion, 69 per cent lower than this time last year. Year-to-date, buyout sales fell 30 per cent to $28.9 billion compared to 2022. There were 203 buyout contracts in the quarter, a 40 per cent year-over-year increase, and year to date, there were 483 buyout contracts completed, more than double...

January 9, 2024
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09Jan

3M to freeze U.S. pension plans

3M Co., St. Paul, Minn., will freeze its U.S. pension plans for nonunion employees at the end of 2028. The company said pension-eligible nonunion employees will accrue benefits until Dec. 31, 2028, according to a Jan. 8 news release. 3M had closed its primary U.S. pension plan to new hires effective Jan. 1, 2009. The change will affect employees at both 3M and Solventum, the healthcare company that is expected to spin off from 3M in the first half of 2024. "This...

January 9, 2024
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08Jan

US. How the Gig Economy Is Reshaping Retirement Planning

As many as 50% of Americans have some sort of side gig, whether this is primarily how they make money, or in addition to a regular job. The gig economy, a phenomenon that may have emerged as a response to the high unemployment rates of the 2008-2009 recession, has become a part of American life, and it’s reshaping retirement. While these gigs offer workers more flexibility and variety, they may also come with some downsides, affecting how financially set people are for retirement. Some...

January 8, 2024
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05Jan

US. Expect familiar worries for 2024 as pension funds mull economy, interest rates

U.S. pension fund executives are taking a cautious approach to 2024, as they await the answer to how much the economy will slow and when and by how much the Federal Reserve may cut interest rates. While much remains unknown, they are seeking returns in places like fixed income and real estate, where they believe the greatest opportunities loom. There's also the matter of the upcoming U.S. presidential election. Christopher Ailman, chief investment officer of the $304.9 billion California State Teachers’ Retirement...

January 5, 2024
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