Job Market Monitor
Pension
Europe / Paying for growing numbers of old people
Long after the debt crisis is over, Europe will be grappling with an even more serious problem – how to pay for growing numbers of old people. The population of some countries is stagnant or already shrinking, notably Germany’s. That will reduce savings and potential economic growth. The workers who remain are getting older and … Continue reading
US / Pension / John Bogle on defined benefit programs
Q: In terms of the evolution of America’s retirement health, we’ve moved from defined benefit programs, pensions, to defined contribution. … Describe what’s happening to our retirement health as these [different] instruments are introduced and the rush of people into mutual funds. … … In my new book, which is called The Clash of the … Continue reading
US / Corporate pension funding: the Gap jumped 17 percent to $295.2 billion
The funding shortfall bedeviling the 100 largest U.S. corporate pension funds rose for a second straight year in 2012, as a strong stock market and hefty plan contributions failed to offset damage done by persistently low interest rates, according to an analysis by Towers Watson released on Monday. The gap between what these corporations, all … Continue reading
Ireland / Retirement age should rise says OECD
A sweeping pensions shake-up would see people forced to work longer, hand over more of their income, and be means tested on payments they receive. The recommendations are contained in a hard-hitting report from the OECD and strongly signal that the retirement age — already set to be pushed back to 68 — should be … Continue reading
US / 14 years lost for preparing retirement
ICI recently released their retirement plan data through Q3 of 2012. The chart of the day shows the real (inflation adjusted) total retirement market assets per working age citizen in the U.S. This includes IRA’s, defined contribution plans, private defined benefit plans, state and local government pension plans, federal pension plans, and annuities. The good … Continue reading
Reinventing retirement / A Study
“Retirement involves a set of institutional arrangements combined with socio-cultural meanings to sustain a distinct retirement phase in life course and career pathways” writes Leisa D Sargent, Mary Dean Lee and Bill Martin. (Quotes from the Abstract to follow) In this Introduction to the Special Issue: ‘Reinventing Retirement: New Pathways, New Arrangements, New Meanings,’ we outline the historical … Continue reading
US / Orphan Clauses / State workers face smaller pension benefits
For public sector workers across the country, the difference of a couple of years, months or even days when starting on the job could mean the loss of hundreds of thousands of dollars in retirement benefits. Facing ballooning bills and strained budgets, 45 states have either cut pension benefits or increased mandatory employee retirement plan … Continue reading
US / The Middle Class Retirement Crisis
Retirement security for those currently or recently in the middle class is no sure thing. 49% of the private work force has neither defined benefit (traditional pensions) or defined contribution (401(k)) retirement plans, while public sector pensions are coming under increasing attack. The United States has the highest elder poverty rate, 25% (measured as 50% … Continue reading
Pennsylvania / Budget proposes pension reform, 400 layoffs plus the elimination of 500 other positions
Gov. Tom Corbett today asked his Republican-controlled Legislature for pension reform, transportation investments and a $90 million increase in basic education funding in his 2013-14 budget. The Republican governor’s $28.4 billion blueprint, if approved by lawmakers, is $679 million higher than the current year’s budget and includes no tax increase. It does, however, propose 400 … Continue reading
US / Defined contribution retirement plans cost more than defined contribution
Private industry employers now spend more per employee hour worked for defined contribution retirement plans (retirement plans that specify the level of employer contributions and place those contributions into individual employee accounts) than for defined benefit retirement plans (plans that provide employees with guaranteed retirement benefits that are based on a benefit formula). March 2012 … Continue reading
