October 2024
01Oct

US. Here’s How Gen Xers Are Catching Up on Retirement Savings

Key Takeaways The oldest Gen Xers are already eligible to withdraw from retirement accounts penalty-free. Gen Xers are often underprepared for retirement but can improve by increasing savings and adjusting their budget. Unlike baby boomers with pensions, Gen X relies heavily on 401(k)s. During their highest earning years, Gen Xers can maximize retirement savings. Roth IRAs and 401(k)s can offer tax advantages for Gen Xers in retirement. Sandwiched between the more populous boomer generation and even more populous Millennials, Gen...

October 1, 2024
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September 2024
26Sep

US. 49% of workers think they can meet their retirement goals — 35% say they will need over $1 million to retire comfortably

By some measures, retirement savers, overall, are doing well. As of the second quarter of 2024, 401(k) and individual retirement account balances notched the third-highest averages on record, helped by better savings behaviors and positive market conditions, according to the latest data from Fidelity Investments, the nation’s largest provider of 401(k) savings plans. The number of 401(k) millionaires also hit a new all-time high. The average 401(k) contribution rate, including employer and employee contributions, now stands at 14.2%, just below Fidelity’s suggested savings rate of 15%. Yet there is still...

September 26, 2024
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25Sep

US. 5 Ways a Kamala Harris Presidency Could Impact Retirees

Vice President Kamala Harris wasn’t even a contender for the White House earlier this year, but she is now the Democratic nominee for the presidency and running neck and neck with her Republican opponent, former President Donald Trump. If she wins, she is expected to promote policies that could affect the bottom line of millions of retirees. “There’s been nothing that she’s said that would lead me to believe she’s a negative to retirees,” says Chris Orestis, president of Retirement Genius,...

September 25, 2024
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24Sep

US. DOL vs. IRS rules: Courts asked to decide how 401(k) plans can use forfeiture assets

What started as a small law firm filing a handful of suits against 401(k) plans' use of forfeited funds has metastasized into a broad attack on sponsors that raises questions about reducing participants' expenses. It's a trend of more law firms filing more lawsuits seeking to use Department of Labor regulations regarding fiduciary duty to supersede IRS rules. Although there are differences among the various sponsor-defendants, the general theme is the same: What can sponsors do with company contributions to a...

September 24, 2024
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23Sep

The U.S. Retirement System Will Fail Most Future Retirees

Careful research by Ph.D economists concludes America faces a huge retirement shortfall. We are about eight to nine years away from Social Security's inability to pay full benefits; all boomers are past age 60, and the typical Gen Y and Millennial is predicted to do a little worse or much worse than the cohorts of their big brothers, sisters, and parents. The erosion in retirement security is worse for the bottom 60% or so of the earnings distribution. Yes,...

September 23, 2024
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20Sep

US. House passes anti-ESG package of bills

House Republicans passed two pieces of anti-ESG legislation in just as many days, culminating in what the party has dubbed “woke week.” The topic is essentially a continuation of the GOP’s long-running anti-ESG campaign, which last year featured a handful of hearings and numerous bills during “ESG month.” This week’s bills, which seek to undo rules from the Securities and Exchange Commission, the Department of Labor and others, stand virtually no chance of passage in the Senate or of getting President Joe...

September 20, 2024
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19Sep

US. Less Than Half of Pre-Retirees Actively Saving for Retirement

Only 40% of pre-retirees—those between five and 10 years away from their desired retirement age—say they are financially preparing for retirement. This according to New York Life’s latest Wealth Watch survey, released Sept. 17, which found that American adults overwhelmingly report they are not financially preparing for major life events like purchasing a home, starting a family, changing careers, or retirement. The survey also found half of pre-retirees think they will retire later than expected, and 22% think they may never...

September 19, 2024
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19Sep

US. New York City Pensions’ CIO Steven Meier discusses trustees’ attitudes to ESG

For Steven Meier, chief investment officer of the New York City public pension funds, finding alignment – particularly regarding ESG – among the trustees of the five pension plans he manages, is one of the key challenges he faces. The trustees of the five New York City public pension plans diverge in their attitudes to ESG, and one of the key challenges Meier faces is “finding consistency of thought” among these trustees, Meier said this week. Meier’s office manages the New...

September 19, 2024
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17Sep

US. State pension funds significantly beat expected investment returns

The Kentucky Public Pensions Authority (KPPA) announced the average composite return for assets under management was 10.7% for the fiscal year ended June 30, 2024, while insurance trust assets under management earned 11.4%.  All pension and insurance portfolios returned significantly more than their actuarial assumed rates of return, which are 6.5% for all County Employees Retirement System (CERS) pension and insurance portfolios and the Kentucky Employees Retirement System (KERS) and State Police Retirement System (SPRS) insurance trusts, 6.25% for the KERS Hazardous...

September 17, 2024
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17Sep

US. Optimism about Retirement Preparedness Growing

Headlines to the contrary, a recent survey found that confidence is growing among American employees concerning their ability to meet their long-term financial and retirement goals. According to the fourth annual Protected Retirement survey from the Nationwide Retirement Institute, more than 6 in 10 (65%) workers say they are on the right track when it comes to financial preparedness for retirement. This figure rises to 71% for those aged 22-34 years old, which is a 15-point increase from 2023. This improvement,...

September 17, 2024
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