October 2023
20Oct

Understanding Financial Vulnerability Among Asians, Blacks, and Hispanics in the United States

By Andrea Hasler, Annamaria Lusardi, Olivia S. Mitchell & Alessia Sconti The COVID-19 crisis has brought to light the deeply rooted financial struggles that many people face in America, and it also exacerbated racial inequality. In particular, minority communities have been disproportionately impacted by the pandemic in many ways, making them ideal targets for efforts to promote financial well-being. This paper examines the financial vulnerability of Asians, Blacks, and Hispanics in the United States, along with potential drivers, using data...

October 20, 2023
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06Oct

The Vanguard Retirement Outlook: A national perspective on retirement readiness

By Fu Tan, Fiona Greig, Andrew S. Clarke, Kevin Khang, Kate McKinnon & Victoria Zhang The global retirement landscape is changing. As populations age, government retirement benefits are under pressure. At the same time, the shift from defined benefit to defined contribution workplace retirement plans means that workers bear more responsibility for managing capital markets risk and turning accumulated savings into retirement income. And many workers have no access to a workplace plan. In the United States, the figure is about...

October 6, 2023
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06Oct

Understanding Trends in Hispanic and African American Retirement Preparedness in the US

By Edward Nathan Wolff  Retirement income security refers to households’ ability to provide an adequate income stream during the period of their retirement from the labor force. Expected retirement income is based on four components: standard wealth holdings, defined contribution pensions, defined benefit pensions, and social security benefits. Using the Survey of Consumer Finances, I find that Black and Hispanic households made remarkable progress in terms of retirement income, poverty reduction, and replacement rates over 1989-2007. This was followed by...

October 6, 2023
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September 2023
29Sep

Best Practices for Defined Contribution Plans

By Nicole M. Boyson This paper provides operational and investment recommendations for ERISA 403(b) plans. Based on a review of academic literature and an empirical analysis, I recommend that plan investment menus include mostly passive index funds covering key investment categories, a full suite of index-based target date funds as the auto-enroll qualified default investment alternative, and a self-directed brokerage option. I also recommend that plan sponsors adhere to and regularly review the plan’s Investment Policy Statement, that the Retirement...

September 29, 2023
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22Sep

2023 BlackRock Read on Retirement

By Black Rock If the pandemic taught us anything, it’s that burnout is real. Three years on, it turns out it’s not just a workplace side effect. BlackRock’s 2023 Read on Retirement™️ survey reveals that financial burnout is on the rise – and one for employers to watch. Today, only about half of workplace savers feel on track to retire with the lifestyle they want – a double-digit drop compared to last year and a worrisome trend since 2021. Encouragingly, though, this drop in...

September 22, 2023
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15Sep

2023 401 (k) Participant Study

By Charles Schwab  • The 2023 401(k) Participant study is an online study conducted by Logica Research. • The study was conducted from April 19 through May 2, 2023. • 1,000 401(k) plan participants completed the survey. • Ages 21-70 • Work for companies with 25+ employees that have 401(k) plans • Currently contribute to their companies’ 401(k) plans • Survey respondents include participants served by approximately 15 different retirement plan providers. • The typical (median) survey length was 10 minutes. Read book “here”

September 15, 2023
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15Sep

Retirement security improves but few feel more secure

By Natixis Investment Managers  Retirement security is looking better for most developed countries, with rising rates, easing inflation, low unemployment in key markets – and with the pandemic fading in the rearview mirror. In fact, nearly all of the countries represented in the 2023 Natixis Global Retirement Index received a higher overall score for the first time in a decade. But while these improvements suggest that retirement security feels more broadly attainable, individuals in many countries are not as optimistic, according...

September 15, 2023
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08Sep

Review of climate-related disclosures by occupational pension schemes

By The Pensions Regulator From 1 October 2021, new regulations came into effect for trustees of certain schemes aimed at improving governance and reporting of climate-related risks and opportunities. Reports under these regulations started to be published from mid-2022. Here, we set out our preliminary observations and feedback to industry, based on our review of a selection of the tranche one climate-related disclosures published by occupational pension schemes Libro completo “aquí”

September 8, 2023
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July 2023
23Jul

China pensions reform: Winning strategies for global asset managers amid evolution in retirement market

By Asifma Major reforms to the Chinese Mainland’s pensions system are creating new opportunities for asset managers. This report, jointly authored by KPMG China and ASIFMA, explores the background to China’s evolving three-pillar pensions system and the demographic factors that necessitated the current reforms, and shares insights from market players on the challenges as well as the opportunities. Pillars 2 and 3 of the pensions assets industry in China could grow to as much as 15-21 trillion RMB by 2030 under...

July 23, 2023
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23Jul

Defined benefit pensions with Liability Driven Investments

By Work and Pensions Committee The economic uncertainty experienced in the UK in September 2022 brought to the fore risks associated with the use of Liability Driven Investment (LDI) strategies by pension schemes. LDI strategies aim to reduce volatility in scheme funding levels by investing in assets whose value moves in the same direction as that of the scheme’s liabilities. Leverage allows schemes to do this in a capital efficient way, freeing up capital that they can invest in ways...

July 23, 2023
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