September 2018

12Sep

US. Trump takes a first step to boost retirement security

President Donald Trump recently issued an executive order aimed at strengthening retirement security in America. It's a step in the right direction, but tackling two additional issues would truly address the pressing needs of working Americans who want to save for retirement. Mr. Trump's Aug. 31 order directs the Department of Labor and the Department of Treasury to encourage the adoption of multiple employer plans (MEPs), which allow small employers to pool resources and costs to offer retirement plans to...

September 12, 2018
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11Sep

US. Another Hit to Retirement Plan Investors: Financial Transaction Tax

An analysis shows a new bill introduced in the Senate would result in a significant financial hit to retirement plan investors. Modern Markets Initiative is pushing back on a tax provision in the bill. The Inclusive Prosperity Act of 2017 has been introduced in the Senate and includes a financial transaction tax (FTT). According to Modern Markets Initiative (MMI), the FTT would be applied to every stock traded, including a 0.5% rate on equity, a 0.1% rate on debt and a...

September 11, 2018
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08Sep

2018 Retirement preparedness survey: A Generational Challenge

By Prudential The U.S. retirement landscape has changed dramatically over the past few decades. Fewer workers today are eligible to receive a pension and instead must save for their own retirements, typically through workplace savings plans. Replacement rates for Social Security are declining due to the increase in the “full retirement age.”1 Income is becoming less predictable, thanks in part to new employment models. Health care costs are increasing, and so is longevity—which means workers today don’t just have more...

September 8, 2018
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06Sep

What are the retirement ages around the world?

Retirement ages, or the age when some sort of government pension can be received, varies around the world. The OECD average for a normal pension age is currently 64.3 years for men and 63.7 years for women. While life expectancy has risen in many countries and governments grapple with ageing populations, any attempts to make people wait longer to collect benefits are usually met with fierce opposition, as Russia and Australia found out recently. Read more sbs

September 6, 2018
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03Sep

US. Retirement plans see rise in cyberattacks

While we may have hoped that employer-sponsored retirement plans would escape the types of cyberattacks plaguing financial service providers and dominating headlines, service providers to employee benefit plans have experienced a substantial increase in cyberattacks over the past few years. One plan record keeper noted the number of these attacks have more than doubled since 2016. Cybersecurity threats present new risks for fiduciaries of employer-sponsored retirement plans, as well as for advisers and other providers who serve them. However, these...

September 3, 2018
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03Sep

State Pension Accounting Estimates and Strong Public Unions

By Samuel B. Bonsall (Pennsylvania State University - Department of Accounting), Joseph Comprix (Syracuse University) & Karl A. Muller (Pennsylvania State University - Department of Accounting) Concerns are commonly raised that strong public unions extract generous pension benefits from state governments and are the cause of states’ burdensome pension obligations. Prior research (Anzia and Moe 2015) finds evidence supporting such concerns. Consistent with incentives to minimize such perceptions, our findings suggest that state pension plans with stronger public unions select...

September 3, 2018
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August 2018

30Aug

US. 3 steps toward fixing America’s retirement system

The U.S. retirement system clearly has shortcomings that are leading to widespread insecurity among older workers. In recognition of this anxiety, recent meetings in Washington, D.C., focused on the system's much-needed modernization as the Bipartisan Policy Center (BPC) launched its Funding Our Future initiative. It focuses on three significant changes that could significantly improve retirement for many U.S. workers: Put Social Security on a sustainable financial path. More than two-thirds of Americans worry that Social Security won't be there when...

August 30, 2018
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25Aug

Graying of U.S. Bankruptcy: Fallout from Life in a Risk Society

By Deborah Thorne (University of Idaho), Pamela Foohey (Indiana University Maurer School of Law), Robert M. Lawless (University of Illinois College of Law) & Katherine M. Porter (University of California - Irvine School of Law) The social safety net for older Americans has been shrinking for the past couple decades. The risks associated with aging, reduced income, and increased healthcare costs, have been off-loaded onto older individuals. At the same time, older Americans are increasingly likely to file consumer bankruptcy,...

August 25, 2018
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24Aug

3 Unusual Retirement Risks You Can’t Ignore

The stock market and personal health are two common things people tend to worry about during their retirement years. Visions of being forced to move in with their children, a lack of savings and real estate prices can also cause anxiety. While those may be top of mind for some, they may not really be the largest threats to financial freedom. 3 unusual retirement risks that you should not ignore Risk of Living too Long This probably seems like a good thing...

August 24, 2018
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22Aug

US. Workers want employers to help more with retirement planning

Many employers appear to be missing the mark when it comes to helping workers prepare for their golden years. While just 16 percent of companies are "very confident" that their employees will be financial secure in retirement, they also often fail to offer the savings tools that their workers actually want, a new study from the nonprofit Transamerica Center for Retirement Studies shows. "There's a basic disconnect related to worker expectations," said Catherine Collison, president and CEO of the center and...

August 22, 2018
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