What’s a safe withdrawal rate for retirees? We estimate 3.3%. However, there are various factors that could affect this percentage, resulting in the retiree withdrawing a significantly higher amount. This report explores ways that retirees can make their savings last longer without compromising their standard of living. Source @Morningstar
There has been a 90% increase in the number of UK pension schemes with over £1bn in assets since 2013, research by Barnett Waddingham has uncovered. In a report published today, the researchers also reveal how 55% of pensions schemes studied were closed to accrual this year, up from just 15% eight years ago. Expansion of pension scheme assets has meant more significant challenges for trustees and employers at a time when there’s about to be a step change in regulatory...
From doctors visits to business meetings, the COVID-19 pandemic has shifted so many of our everyday interactions from in person to online. One silver lining of this dramatic change has been increased engagement when it comes to people learning about their retirement savings. Transamerica, an investment solutions, retirement and insurance company, has seen a significant uptick in the number of retirement plan participants meeting virtually with plan consultants since the start of the pandemic. From doctors visits to business meetings, the...
By Miguel Lorca Amid the extraordinary economic effects of COVID-19, some policymakers have turned to retirement accounts to support individuals in financial hardship. Given the haste, the long-term impacts and their heterogeneity have scarcely been analyzed. Using Monte Carlo simulations on the Chilean Social Protection Survey linked with administrative data, this study quantifies the effects of a 10% early release of pension funds. Each withdrawn dollar brings losses of 1.59 dollars in future retirement savings, reducing monthly pension benefits by...
As the year draws to a close, it is helpful for employers to pause and evaluate employee benefit plan amendment deadlines and other crucial fourth quarter benefit considerations, as described below. Plan Amendment Deadlines Many benefit plan changes must be amended by year end to reflect pandemic relief provisions implemented under the Families First Coronavirus Response Act (FFCRA), the Setting Every Community Up for Retirement Enhancement (SECURE) Act, and the Coronavirus Aid, Relief, and Economic Security (CARES) Act. CAFETERIA PLAN AND FSA...
A new survey says 40% of Americans actually fear retirement more than death. The study found 87% of people fear not having enough income in retirement. The second biggest fear is losing health insurance. A variety of factors are influencing these fears. Many Americans are facing retirement savings shortfall and more than half worry about the future of social security. When deciding to retire, one of the biggest factors to consider is if you have enough money saved. To sustain...
By Ebrahim K Ebrahim All Arab countries, except for three, have deficits in their pension funds exceeding 50%. As for the three countries, two of them started their social insurance relatively late and the third one had to significantly recapitalize its fund early last decade. Likewise, these three countries are not immune from deficits of similar proportions during the next two decades if they end up doing the same thing. Up until now, there is one thing all Arab countries...
Assets of the world's 300 largest retirement funds increased 11.5% to $21.72 trillion in 2020, despite the effects of the coronavirus pandemic that ravaged stock markets and economies in the first half of the year, according to the latest annual survey by Pensions & Investments and Willis Towers Watson PLC's Thinking Ahead Institute. Read also Sweden. AP2 continues sustainability journey with stellar returns and costs The top funds' assets also grew at a faster rate than a year earlier, when they...
Nigeria’s total pension asset value rose by N123.47 billion in July 2021 to close at N12.78 trillion compared to N12.66 trillion recorded in the previous month. This is contained in the pension funds industry report for the review month as released by the National Pension Commission. According to the report, the net asset value of Nigeria’s pensions fund recorded a 0.98% increase in the month of July 2021, while 22,349 RSA registrations were recorded in the same month increasing total...
Workers kept up with payments into their pension funds last year, confounding fears that many people might scrap or cut their contributions because of pandemic pressures, according to government data. Annual savings from eligible savers rose to £105.9bn, from £100.4bn in 2019, said the Department of Work and Pensions in a report on Thursday. That extends the increases posted since 2012, following the introduction of auto-enrolment into work-based pension schemes to boost retirement saving. The DWP said a fall in employee...
