18 11, 2019

Two rival experts agree — 401(k) plans haven’t helped you save enough for retirement

2019-11-18T11:28:35-08:00November 18th, 2019|Categories: 401(k)|Tags: , |

Retirement experts have debated for years over the consequences of America’s shift from traditional pensions to 401(k)s and other so-called defined contribution plans. Among the issues at hand: Do the new-style plans leave too many workers behind? Do they saddle employees with too much risk? Do they increase economic inequality? It’s fascinating, then, to see that two experts who commonly come at these questions from opposite sides of the political divide have collaborated on an important new analysis of [...]

20 09, 2019

Half of UK residents are confident they can retire comfortably

2019-09-20T16:38:39-07:00September 20th, 2019|Categories: Retirement|Tags: , |

Half (52%) of UK individuals are confident about their ability to retire comfortably, compared to 48% who agreed with this in 2017, according to research by Aegon. The Retirement confidence survey, which polled 830 UK residents, further found that 10% of individuals do not have any pension savings, while 36% have never estimated their income needs for retirement; this compares to 43% who had not done this in 2017. In addition, 25% of those respondents who do have pension savings [...]

27 11, 2018

Americans are retiring at an increasing pace

2018-11-27T14:40:22-08:00November 27th, 2018|Categories: Retirement|Tags: |

The number of Americans retiring daily has nearly doubled since the year 2000. Currently, roughly 10,000 people turn 65 each day, the standard age for retirement, according to a Deutsche Bank note published Tuesday. And according to Census forecasts, that number is set to rise. It will reach nearly 12,000 people within the next 10 years. By 2030, according to the Census Bureau, all baby boomers will be older than 65. The growth in retiring baby boomers will have [...]

23 10, 2017

Republicans Consider Sharp Cut in 401(k) Contribution Limits

2017-10-23T15:47:12-07:00October 23rd, 2017|Categories: 401(k)|Tags: , |

House Republicans are considering a plan to sharply reduce the amount of income American workers can save in tax-deferred retirement accounts as part of a broad effort to rewrite the tax code, according to lobbyists, tax consultants and congressional Democrats. It is unclear if Republicans will ultimately include a cap on contributions in the tax bill that they are expected to release in the coming weeks. Such a move would almost certainly prompt a vocal backlash from middle-class workers [...]

4 10, 2017

63 percent of defined benefit retirement participants in plans open to new participants

2017-10-04T17:59:48-07:00October 4th, 2017|Categories: Defined Benefit Plans|Tags: |

In March 2017, 63 percent of private industry workers participating in defined benefit retirement plans were in plans that were open to new participants. Twenty-five percent of workers were in soft-freeze plans, or plans that no longer allow new employees to participate but allow all or some workers in the plan to continue accruing benefits. The remaining 12 percent of workers were in frozen, or hard-freeze plans. Participants in frozen plans stop accruing benefits on the date the plan [...]

25 02, 2015

Longer Lives Hit Companies With Pension Plans Hard

2015-02-25T18:26:04-08:00February 25th, 2015|Categories: Pension Funding|Tags: , , , |

When General Motors Co.’s pension plan took a big hit earlier this month, it joined hundreds of companies facing growing pension shortfalls as Americans keep living longer. Longevity has a downside for those paying the bills, and the higher costs now have to be reflected on corporate balance sheets because of new mortality estimates released in October. […]

19 01, 2015

A fix for corporate pensions?

2015-01-19T22:08:34-08:00January 19th, 2015|Categories: Pension Reform|Tags: , |

Can variable income annuities help ease the anxiety defined-benefit plan participants are feeling about outliving their retirement savings? What if plan sponsors could guarantee participants life-time retirement income without creating the volatile funding liabilities that have driven so many employers away from traditional defined-benefit plans?  […]

27 10, 2014

Majority of Canadians Feel They Can’t Afford to Retire

2014-10-27T20:42:29-07:00October 27th, 2014|Categories: Retirement|Tags: , |

Despite the fact that many Canadians say they are putting money aside for retirement, the majority are concerned they have not saved enough to sustain them through retirement, according to findings from a new Conference Board of Canada report. The report, A Survey of Non-retirees and Retirees in Canada: Retirement Perspectives and Plans, summarizes the findings of a Conference Board survey of Canadians’ retirement readiness conducted in June 2014. […]

6 08, 2014

Pension Benefit Guaranty Corporation (PBGC) Coverage May No Longer Apply to Puerto Rico- Only Qualified Retirement Plans

2014-08-06T16:51:11-07:00August 6th, 2014|Categories: PBGC|Tags: , |

Employers that sponsor defined benefit qualified retirement plans benefiting only Puerto Rico employees should be aware that Pension Benefit Guaranty Corporation (PBGC) coverage may no longer apply. Last year, the PBGC withdrew old prior opinion letters (Opinion Letters 77-172 and 85-19) regarding PBGC coverage in Puerto Rico and Guam. Those opinion letters articulated the PBGC’s position at that time, that Title IV of the Employee Retirement Income Security Act (ERISA) (providing for PBGC coverage), may apply to defined benefit plans covering only Puerto Rico participants if [...]

6 08, 2014

How to get more out of your defined-benefit plan

2014-08-06T16:49:21-07:00August 6th, 2014|Categories: Defined Benefit Plans|Tags: |

Who has a defined-benefit plan anymore? You might be surprised — and if you’re one of the lucky few, there are ways to increase that benefit before you retire. While such plans, especially traditional final-average salary plans, haven’t been in favor for a long time, 20% of workers in the private sector who have a retirement plan, and a much larger percentage of workers in the public sector, still have these plans. This represents millions of people who need [...]

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