September 2022
09Sep

Rise of DC poses risks and challenges for future pensioners

Increasing reliance on defined contribution savings means the needs of future pensioners will be markedly different from those of previous generations, placing greater emphasis on the need for support, according to a new report. The report from the Pensions Policy Institute, published on September 8, explained that increasing reliance on DC pots as opposed to older defined benefit schemes results in “more complex” retirement finances that future pensioners will have to manage, and that these will require more active engagement...

September 9, 2022
News, , ,
Read more...

July 2022
22Jul

The Effects of Myopia on Retirement Savings Decisions

By Justin van de Ven Recent pensions policy debate in the United Kingdom has emphasised the role of behavioural myopia in justifying state involvement in retirement provisions (e.g. Pensions Commission, 2005, pp. 68-69, and op.cit.). In this regard, it appears that the public debate has gotten slightly ahead of the economic literature, as there currently exist very few studies that consider the empirical support for myopia on field data, or the practical implications of myopia for behavioural responses to policy...

July 22, 2022
Articles, Savings, , ,
Read more...

June 2022
24Jun

Would the Securing a Strong Retirement Act Secure More Retirement Equity?

By Albert Feuer On March 29, 2022 the House approved H.R. 2954 that is titled the Securing a Strong Retirement Act of 2022 (the SECURE Act 2.0) by a vote of 414-5. On May 26, 2022, a discussion draft of the Retirement Improvement and Savings Enhancement to Supplement Healthy Investments for the Nest Egg (RISE & SHINE) Act of 2022 was released by the Senate Health, Education, Labor, and Pensions Committee Chair Senator Patty Murray (D-WA), and Ranking Member Senator Richard...

June 24, 2022
Articles, Regulation, , , ,
Read more...
16Jun

US. DC plan participants prioritizing returns over principles

Increased interest in incorporating ESG principles in defined contribution retirement plans, leveraging collective investment trusts (CITs) and offering financial wellness tools as a value-add are some of the latest trends on the minds of consultants and advisors, according to T. Rowe Price’s 2021 Defined Contribution Research Study conducted in partnership with Schaus Group. Michael Davis, T. Rowe Price’s head of defined contribution plan specialists, told Benefits PRO that the survey responses from 32 consultant and advisory firms jibes well with...

June 16, 2022
News, , , ,
Read more...
09Jun

Factors Influencing the Choice of Pension Distribution at Retirement

By Robert L. Clark & Olivia S. Mitchell One of the most important financial decisions that pension participants make concerns how they access their pension assets when they terminate employment with their plan sponsor. Their choices depend both on own preferences and the options offered by their retirement plan. This paper examines both past and future pension withdrawal choices for those with defined benefit and defined contribution pensions, separately. Our data are drawn from a set of pension distribution questions...

June 9, 2022
Articles, Pension design, , , , ,
Read more...

May 2022
17May

UK. Public-Sector Workers Delay DC Plan Decumulation

Almost half of public sector employees are taking no action to decumulate defined contribution plan retirement savings once retired, according to Mission Square Retirement research released this month. Josh Franzel, managing director at the Mission Square Research Institute, says the results of their research can help plan sponsors understand how public sector participants and retirees—most of whom also have a defined benefit plan—behave regarding their supplemental defined contribution savings. “It’s important to take a holistic view from a plan sponsor perspective...

May 17, 2022
News, , ,
Read more...
12May

The DC Future Book 2021: In Association With Columbia Threadneedle Investments

By Pension Police Institute & Investments Columbia Threadneedle Columbia Threadneedle Investments has supported The DC Future Book since its inaugural publication six years ago. We are pleased to see that it has become the foremost longitudinal study of the UK Defined Contribution (DC) market we envisaged it to be. This is a special edition indeed – it is the first time that the Pensions Policy Institute has been able to track DC market activity against the backdrop of a major crisis....

May 12, 2022
Books, Investment, Pension design, Pension Management, , , , ,
Read more...

November 2021
12Nov

UK. DC schemes urged to offer more pension choices at retirement

Only 11 per cent of defined contribution (DC) pension schemes offer members a full suite of options to access funds at retirement, despite this delivering the best outcome for members, research from XPS Pensions Group has found. XPS's DC Member Outcomes Report revealed that members with access to a full range of flexibilities at retirement, including access to flexible drawdown, a cash lump sum or an annuity, are more likely to make choices that allow them to maximise the funds...

November 12, 2021
News, ,
Read more...

October 2021
22Oct

UK. 39% of DC schemes failing to take account of ESG in default strategies

Around 39 per cent defined contribution (DC) pension schemes do not include environmental, social and governance (ESG) factors in the design of their default investment strategies, research from LCP has found. The survey showed that whilst 50 per cent of schemes were taking account of ESG investing "to some extent" in the design of their default investment strategy and 11 per cent were taking account "explicitly so", others were lagging behind. In addition to this, around 49 per cent of DC...

October 22, 2021
News, Slider, , ,
Read more...
18Oct

US. Trends in Retirement: Focus on Retirement Income

DC plans are addressing a wider range of participant circumstances via more customization, layered communications and programs that build financial resilience The impact of the COVID-19 pandemic and the ongoing variant spread has transformed the U.S. workforce, causing many to retire earlier than planned, others to retire later than planned, and adding to concerns about financial security across the board. For defined contribution plan sponsors, it has honed their participant retirement outcomes using a wider array of products and services,...

October 18, 2021
News, Slider, , ,
Read more...