August 2024
23Aug

U.S. asset managers worried about interest rate uncertainty, cautious on AI

While worries about inflation have subsided, asset managers in the U.S. are concerned about uncertainties surrounding interest rates, capital funding and how generative artificial intelligence will play out across the industry over the long term, according to the latest “Asset Management Industry Pulse” survey from KPMG. The survey found that almost two-thirds (63%) of asset managers expect the Federal Reserve will commence cutting interest rates in the second half of 2024, while the remaining 37% think the central bank will hold...

August 23, 2024
News, , ,
Read more...
22Aug

US. Reduction in Pension Benefits Leads to Wider Income Inequality, Study Finds

The continuing decline of the number of defined benefit pension participants in the U.S. is widening America’s income equality gap, which in turn is stunting economic growth, according to a recent study from the National Conference on Public Employee Retirement Systems. The study also found that public policies aimed at cutting public costs by reducing pension benefits or switching to defined contribution plans may actually increase the need for public spending due to “the dynamic interrelationship between pension reforms, income inequality, the...

August 22, 2024
News, , ,
Read more...
16Aug

US. Few Plans for Retirement Are Weatherproofed for Extreme Events

Most Americans are fretting over the risks extreme weather events can pose to their plans for retirement, according to Allianz Life Insurance’s annual retirement study. “As natural disasters become more frequent, more intense and more costly, Americans are waking up to how this could pose a risk to their retirement nest egg,” said Lorinda Niemeyer, Allianz Life’s head of sustainability, in a statement. “For many, extreme weather is increasing daily costs of living, insurance costs and other ongoing expenses. And those...

August 16, 2024
News,
Read more...
09Aug

US. House committee still seeking answers on pension bailout overpayments

Republican members of a House committee are still seeking answers over the mismanagement of bailout money distributed to failing pension plans. A Wednesday letter penned by Reps. Virginia Foxx, R-N.C., and Bob Good, R-Va., called on Attorney General Merrick Garland to provide all communications surrounding the Department of Justice’s investigation into more than 60 multiemployer pension plans that were alleged to erroneously include dead plan participants on their special financial assistance applications. Central States Pension Fund entered a civil settlement in...

August 9, 2024
News,
Read more...
05Aug

US. What the longevity economy means and why it’s important

Q. I have heard a lot about the longevity economy and don’t fully understand what it means. Can you explain it and why is it important? Many thanks. N.D. Let’s begin with the term “longevity.” Often it is used as a substitute for aging, yet the words are different from one another. Aging can be defined as a progressive decline to maintain one’s biological and physiological functioning. Longevity does not include decline. It is the average lifespan under ideal conditions suggesting how long we could live if all...

August 5, 2024
News,
Read more...
05Aug

The three phases of retirement and how to maintain your quality of life

As you approach retirement, the third phase of your life after childhood and your working years, planning for financial security becomes crucial, especially to protect the wealth you built and maintain your lifestyle for the rest of your life. John Kennedy, director and regional head for the Western Cape at Citadel, says strategic financial management in retirement is extremely important, especially considering that this phase can be divided into three distinct periods, each requiring different financial approaches. A poll published on...

August 5, 2024
News,
Read more...
02Aug

US. Nearly half of Americans projected to face funding shortfalls in retirement — Morningstar

Almost half of Americans (45%) will experience funding shortfalls in retirement, with single females most at risk, according to a new report from Morningstar Retirement. More than half of single females (55%) are expected to run short of money compared with 41% of couples and 40% of single males, the report found. The report also uncovered significant racial differences, with Hispanic and non-Hispanic Black Americans at greater risk of funding shortfalls than non-Hispanic whites and other non-Hispanics. More than 3 in...

August 2, 2024
News,
Read more...
01Aug

Pension funds should protect our future, not destroy it

We live in a world where people’s movements for a healthy environment, with clean air to breathe and fresh water to drink, are vital and unstoppable. Sadly, fossil fuel companies are using all their might to continue extracting and polluting – harming communities, nature and the climate, all for the short-term financial gains of a few. But, as crises collide, calls for governments to hold corporations to account are growing, together with expectations that businesses must avoid harming people and...

August 1, 2024
News,
Read more...
01Aug

The Time is Right for a National Retirement Savings Plan

Experts on retirement saving have plenty of assorted ideas for making 401(k) plans work better. But most agree on the top priority: get them into the hands of more people. Only about half of private-sector US workers are covered by an employer-sponsored retirement savings plan at any given time—and that figure hasn’t budged much over the years. The lost opportunity to save at the workplace translates into far too many people retiring with paltry savings or none at all, leaving them reliant...

August 1, 2024
News, , ,
Read more...

July 2024
31Jul

US. The ‘Three-Legged Stool’ of Retirement Is Missing a Leg

Once, the tale goes, American workers relied upon a three-legged stool for their retirement income: 1) Social Security, 2) pensions, and 3) personal savings. That metaphor was always rickety, as even at their peak pensions covered less than half of private-sector workers. Today, that figure is 15%. (Government employees are another matter, although those with college educations pay for the pension privilege by receiving lower ongoing wages.) To switch analogies, the middle ground is vacant. Social Security provides subsistence for retirees, while personal savings contribute...

July 31, 2024
News,
Read more...