Job Market Monitor
Retirement
UK / One in five retiring in 2013 in poverty
Study by Prudential finds many people are facing a bleak financial outlook, with 14% relying solely on state pension One in five people retiring in Britain in 2013 will fall below the income poverty line according to a study by Prudential, which also found that nearly a quarter of women will enter retirement entirely dependent … Continue reading
US / Why Is Age 65 Still a Retirement Peak?
‘In order to address an immediate and long-term funding problem, the Social Security Amendments of 1983 gradually increased the Full Retirement Age (FRA), changed the actuarial adjustment for individuals claiming benefits between the early and full retirement ages, and increased the delayed retirement credit. Together, these changes increase the financial gain to individuals who delay … Continue reading
Portugal / To lift retirement age and working hours
Lisbon plans to increase the retirement age and make public sector employees work an extra hour daily as part of a package of new spending cuts needed to avoid bankruptcy and remain in the euro. Lisbon plans to raise the retirement age and make public sector employees work an extra hour daily as part of … Continue reading
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
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
