As retirees live longer, pensions become big problem

2015-02-23T22:31:42-08:00February 23rd, 2015|Categories: Retirement|Tags: , , |

People are living longer – and that’s bad news for some companies’ bottom lines. As pension plans incorporate new life-expectancy estimates into their calculations, investors are glimpsing the financial fallout from aging societies. AT&T Inc. last month absorbed a $7.9 billion noncash charge from rising pension costs, including retirees’ longer lifespans. At Northrop Grumman, updated mortality estimates boosted its pension obligations by $4.5 billion to $30.5 billion, while shareholders in IBM saw their equity shrink by around $6 billion.  [...]