Only you can know if you're ready for a checklist for retiring in 2025. If you’re 60 or getting there, retirement is no longer a hazy concept in the distance. It’s a real deadline. In five or six years, or maybe just a year. Or six months. Or even six weeks. You are going to leave your full-time job, not for a new phase in a working career, but for a largely unknown future. Ideally, you’ve prepared financially and otherwise...
Just a fifth of UK savers (19%) have fully considered getting a serious illness in their retirement plan, according to research by consultancy Barnett Waddingham. Its At retirement reckoning report, which surveyed more than 5,000 UK employees, also found that 25% of respondents under the age of 50 have prepared for this possibility, compared to just 16% of those aged over 50. Two-fifths (43%) of this older age group have thought about it but not included it in their retirement planning, and 32%...
Morningstar Inc. has lowered what the investment research firm considers a safe retirement savings withdrawal rate for new retirees based on a 30-year outlook, according to the firm’s annual “State of Retirement Income” report released Wednesday. To decide on the recommended withdrawal rate, Morningstar researchers considered forward-looking asset class returns and inflation assumptions for new retirees, excluding what they may be getting from Social Security or other nonportfolio income sources such as a company pension. In that forward-looking analysis, the authors...
Planning to achieve a comfortable retirement tops clients’ financial advice ‘wish lists’ over the next six months, but the peak age for it being an advice priority is not reached until the age of 55, according to research from St. James’s Place (SJP). Its study showed that the top three advice priorities in the UK were retirement planning advice, general investment and savings advice, and better budgeting. However, SJP found there was a “large generational divide” as cost of living and...
The ranks of retirement income solutions are already impressive and continue to grow as participants’ needs evolve and providers innovate. It may seem like a tall task for defined contribution (DC) plan sponsors to home in on the solutions that warrant a closer look—even as the growing demand for lifetime income adds urgency to the effort. We think working through four critical questions, which address aspects such as the location, income certainty and accessibility of solutions, can help bring the...
A closer look at the Boeing negotiations only makes the question more puzzling Boeing Co. unionized workers recently voted to accept the aerospace company's third contract offer and end their strike. The agreement does not include reopening the Boeing (BA) defined-benefit pension plan, which was cited as the major reason that the union rejected the second offer. Even though the strike is over, I find the fact that reopening the pension plan played such a prominent role in the negotiations really...
The tail-off in defined benefit (DB) pension provision around the millennium and a lack of compulsion around defined contribution (DC) saving until 2012 has had a lasting impact according to Standard Life’s Retirement Voice report. • Majority of Gen X (54%) are worried their finances won’t cover their retirement – compared to 31% among Baby Boomers • 45% Gen X expect their living standard to be worse in retirement compared to 29% of Millennials • Gen X most likely...
By Peter Kuhn This is volume 42 issue 4 of Journal of Labor Economics. Founded in 1983 as the first journal devoted specifically to labor economics, the Journal of Labor Economics (JOLE) presents international research on issues affecting social and private behavior, and the economy. JOLE’s contributors investigate various aspects of labor economics, including supply and demand of labor services, personnel economics, distribution of income, unions and collective bargaining, applied and policy issues in labor economics, and labor markets and...
By Olivia S. Mitchell, John Sabelhaus & Stephen P. Utkus Growing awareness of real-world shocks including market downturns, health surprises, and labor market readjustment is calling into question the ability of global retirement systems to remain healthy and sustain future retirees. Financial and labor market stresses are shaping how older workers fare as they head into retirement, and how younger workers must prepare financially for their futures. These shocks come on top of long-standing concerns surrounding rising longevity, along with...
The world is going through a seismic demographic transition, as populations age and traditional workforces shrink, prompting challenges for retirement systems that need to adapt to remain resilient. AI may be able to assist, by helping individuals make better decisions about their own retirement and by helping invest retirement assets. Given the importance of retirement, embedding trust into our AI systems is essential before they are deployed to the retirement business. Lifespans and the cost of living are rising...
