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Retirement Income
The increasing cost of health care seems to be coming out of retirement’s pockets, according to a new survey.According to the 2016 Health and Voluntary Workplace Benefits Survey (WBS) conducted by the non-partisan Employee Benefit Research Institute (EBRI) and Greenwald & Associates, half of...
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New research considers the potential impact of longevity income annuities, and finds some real benefits in retirement security.Back in 2014, the Treasury Department issued a rule that essentially allows employees to convert part of their IRA or 401(k) balances into a longevity annuity. Under that...
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There’s an old saying: “You can lead a horse to water, but you can’t make him drink.” It’s the lament of many a retirement plan professional who has tried to persuade an employer to offer a workplace retirement savings plan for his/her workers, only to be rebuffed.Moreover, it’s a sentiment...
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A new report quantifies the persistent, if shrinking, gender gap in financial wellness.According to the 2016 Gender Gap in Financial Wellness study by Financial Finesse, that gap has closed to 8.9 percentage points, a 37% improvement since 2012. However, the report cautions that part of the closure...
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A key element in retirement planning is the rate of return assumption — and a new report takes a look at not only what return assumptions are common, but the odds of achieving it.Research Affiliates looked at the default returns built on hundreds of underlying participants, and found that the...
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The Pension Benefit Guaranty Corporation (PBGC) announced on Oct. 28 that the guarantee limit for single-employer plans that fail in 2017 will be higher than the limit that applied for 2015 and 2016.The maximum annual guarantee limits for 2017 include the following.Age 70Annual Maximum Single Life...
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Defined contribution plans have supplanted defined benefit plans as the most prevalent retirement plan offered through places of employment. But that certainly doesn’t mean that they are static. A recent paper argues that those that design, offer and administer them should not rest on their laurels...
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The 2016 general election is upon us, a knock-down, drag-out fight between two intensely polarizing figures — Hillary Rodham Clinton and Donald J. Trump — vying for votes among an increasingly polarized electorate.In this intensely partisan political atmosphere, it is easy for the topic of saving...
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One might think that retirement income solutions would be more prevalent among larger plans — but you’d be wrong, according to a new survey.While 64% of plan sponsors state that it is a high priority to implement a retirement income solution, only 16% currently have one in place, according to a...
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Halloween is the time of year when one’s thoughts turn to trick-or-treat, ghosts and goblins, and things that go bump in the night. But what are the things plan sponsors are scared about?Getting sued.Plan sponsors will often mention their fear of getting sued, and little wonder. The headlines are...
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The IRS on Oct. 27 announced cost of living adjustments affecting dollar limitations for pension plans and other retirement-related items for tax year 2017. The 2017 limits are contained in Notice 2016-62.Increased LimitsThe IRS has increased the following limits for 2017 from 2016 levels:For an...
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The IRS and Pension Benefit Guaranty Corporation (PBGC) have announced that they are granting relief to victims of Hurricane Matthew in hard-hit parts of South Carolina, Georgia and Florida. They had taken similar action concerning North Carolina on Oct. 12.The IRS made its announcements in SC-2016...
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The 2016 ASPPA Annual Conference kicks off Sunday at the Gaylord National Resort at the National Harbor, located in Oxon Hill, Md., just outside our nation’s capital. We'll be there from the start until the conference ends on Wednesday, reporting on the general sessions, workshops and more. Don't...
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There will be a 0.3% cost-of-living adjustment (COLA) for Social Security for 2017, the Social Security Administration (SSA) announced on Oct. 18.The COLA is based on the increase in the Consumer Price Index (CPI-W) from the third quarter of 2014 through the third quarter of 2016. The slight...
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In the third of a series of articles that features the insights of American Enterprise Institute (AEI) Resident Scholar Andrew Biggs in light of AEI’s recent paper, “Increasing the Effectiveness and Sustainability of the Nation’s Entitlement Programs,” Biggs shares his views on what can be done to...
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A new research paper highlights several new observations about people who have limited financial assets in retirement, specifically findings regarding spending on financial shocks, or unexpected expenses, since retiring.The report, by the Society of Actuaries, (SOA) notes that the types of shocks...
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They may not have very much in common, but the two major party presidential candidates seem to be on the same page when it comes to state-run auto-IRA programs.According to Politico, Diana Furchtgott-Roth, a volunteer adviser to Donald Trump’s campaign, affirmed Trump’s support for the state auto-...
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The Pension Benefit Guaranty Corporation (PBGC) on Oct. 11 announced that $150 million more will be provided to Alcoa’s two largest pension plans under an agreement it has reached with the company. The PBGC’s move affects the more than 83,000 individuals those plans cover. Alcoa has six other...
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A new survey finds that current retirees are keeping a careful eye on their spending — and feel that they can sustain that approach throughout retirement.Four in 10 retired investors (42%) say they are carefully spending down their retirement savings so it lasts as long as they need it, and nearly...
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GIC/stable value and money market funds benefited from 401(k) participants fleeing company stock and target-date funds in September, according to a new report.Despite its historic (and current) volatility, September turned out to be another light month of trading for 401(k) investors, with 0.14% of...
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