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Archive for the ‘retirement’ Category

New From the GAO

October 30, 2014 Comments off

New GAO Reports
Source: Government Accountability Office

1. Pension Plan Valuation: Views on Using Multiple Measures to Offer a More Complete Financial Picture. GAO-14-264, September 30.
http://www.gao.gov/products/GAO-14-264
Highlights – http://www.gao.gov/assets/670/666288.pdf

2. DOD Business Systems Modernization: Additional Enhancements Are Needed for Army Business System Schedule and Cost Estimates to Fully Meet Best Practices. GAO-14-470, September 30.
http://www.gao.gov/products/GAO-14-470
Highlights – http://www.gao.gov/assets/670/666294.pdf

3. Federal Real Property: More Useful Information to Providers Could Improve the Homeless Assistance Program. GAO-14-739, September 30.
http://www.gao.gov/products/GAO-14-739
Highlights – http://www.gao.gov/assets/670/666258.pdf

4. VA Health Care: Management and Oversight of Consult Process Need Improvement to Help Ensure Veterans Receive Timely Outpatient Specialty Care. GAO-14-808, September 30.
http://www.gao.gov/products/GAO-14-808
Highlights – http://www.gao.gov/assets/670/666249.pdf
Podcast – http://www.gao.gov/multimedia/podcasts/666528

5. Energy Policy: Information on Federal and Other Factors Influencing U.S. Energy Production and Consumption from 2000 through 2013. GAO-14-836, September 30.
http://www.gao.gov/products/GAO-14-836
Highlights – http://www.gao.gov/assets/670/666271.pdf

6. Disability Compensation: Review of Concurrent Receipt of Department of Defense Retirement, Department of Veterans Affairs Disability Compensation, and Social Security Disability Insurance. GAO-14-854R, September 30.
http://www.gao.gov/products/GAO-14-854R

7. DOD Space Systems: Additional Knowledge Would Better Support Decisions about Disaggregating Large Satellites. GAO-15-7, October 30.
http://www.gao.gov/products/GAO-15-7
Highlights – http://www.gao.gov/assets/670/666715.pdf

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In brief: New mortality tables to impact benefit obligation assumptions

October 23, 2014 Comments off

In brief: New mortality tables to impact benefit obligation assumptions
Source: PricewaterhouseCoopers

The Society of Actuaries (SOA) is expected to finalize a new set of mortality tables by the end of October 2014. Because mortality is a key assumption in developing actuarial estimates, this could significantly impact the valuation of pension and other postretirement benefit (OPEB) obligations. Companies should consider this new mortality data at their plans’ next measurement date in relation to their plan participant population, historical plan-specific mortality experience, and future expectations.

New From the GAO

October 22, 2014 Comments off

New GAO Report
Source: Government Accountability Office

Reissue

1. Individual Retirement Accounts: Preliminary Information on IRA Balances Accumulated as of 2011, by James R. McTigue, director, strategic issues, and Charles A. Jeszeck, director, education, workforce, and income security issues, to the Senate Committee on Finance. GAO-14-878T, September 16.
http://www.gao.gov/products/GAO-14-878T
Highlights – http://www.gao.gov/assets/670/665805.pdf

This statement was amended on October 22, 2014, to revise the estimated individual retirement account and defined contribution plan accumulations for our illustrative contribution scenarios with balances invested in an S&P 500 portfolio. The original estimates used a price index that did not include reinvested dividends. Table 2 and the text on page 8 have been updated to reflect total returns on the investments.

The Middle-Class Squeeze: A Picture of Stagnant Incomes, Rising Costs, and What We Can Do to Strengthen America’s Middle Class

October 21, 2014 Comments off

The Middle-Class Squeeze: A Picture of Stagnant Incomes, Rising Costs, and What We Can Do to Strengthen America’s Middle Class
Source: Center for American Progress

The American middle class is in trouble.

The middle-class share of national income has fallen, middle-class wages are stagnant, and the middle class in the United States is no longer the world’s wealthiest.

But income is only one side of the story. The cost of being in the middle class—and of maintaining a middle-class standard of living—is rising fast too. For fundamental needs such as child care and health care, costs have risen dramatically over the past few decades, taking up larger shares of family budgets. The reality is that the middle class is being squeezed. As this report will show, for a married couple with two children, the costs of key elements of middle-class security—child care, higher education, health care, housing, and retirement—rose by more than $10,000 in the 12 years from 2000 to 2012, at a time when this family’s income was stagnant.

As sharp as this squeeze can be, the pain does not stop at one family, or even at millions of families. Because of the critical role that middle-class consumers play in creating aggregate demand, the American economy is in trouble when the American middle class is in trouble. And the long-term health of the U.S. economy is at risk if financially squeezed families cannot afford—and smart public policies do not support—developing the next generation of America’s workforce. It is this workforce that will lead the United States in an increasingly open and competitive global economy.

This report provides a snapshot of the American middle class and those struggling to become a part of it. It focuses on six key pillars that can help define security for households: jobs, early childhood programs, higher education, health care, housing, and retirement. Each chapter is both descriptive and prescriptive—detailing both how the middle class is doing and what policies can help it do better.

A Diversity of Risks: The Challenge of Retirement Preparedness in America

October 14, 2014 Comments off

A Diversity of Risks: The Challenge of Retirement Preparedness in America
Source: Bipartisan Policy Center

Many Americans are anxious about their retirement prospects. In fact, a recent Gallup poll found that not having enough money for retirement is the number one financial worry among Americans. For some, this concern is justified, as they face the daunting prospect of running short of money in their later years. But there is considerable variation in preparedness for retirement, and the challenges are more complicated than many realize.

When evaluating the retirement security landscape, complexity is the one constant. Potential sources of retirement income are numerous and varied, including: continued work (perhaps on a part-time basis), Social Security benefits, drawdown of personal savings, workplace retirement plans, annuities, home equity, financial support from family members, and more. Understanding this patchwork and building a solid foundation upon which to retire is no easy task for the average American.

Additionally, even for those who do accumulate substantial resources, retirees’ incomes and living standards are subject to a variety of risks, such as poor investment choices or returns, unexpected medical bills, outliving one’s savings, and needing expensive long-term care.

The U.S. retirement landscape is difficult to describe for the “average” person because the state of any particular retiree’s finances depends so heavily on which sources of income they have, how much they have, and what life events occur that could drain their nest egg.

The Bipartisan Policy Center’s (BPC) Commission on Retirement Security and Personal Savings is examining the U.S. retirement system. Next year, the commission will make comprehensive recommendations to improve the financial security of Americans preparing for and in retirement. In advance of these recommendations, BPC staff is producing a series of white papers to highlight the retirement security challenges that public policy can address.

After a brief overview of the retirement system, this first white paper explores retirement preparedness through the lives of four fictional families, showing how they are preparing for retirement, what they could be doing better, and the risks that they will face over the course of their working years and their retirements.

Which Employees Are Delaying Retirement and Why?

October 13, 2014 Comments off

Which Employees Are Delaying Retirement and Why?
Source: Towers Watson

AT A GLANCE

  • 34% of workers under 40 believe that retirement delays among older workers are restricting their career opportunities.
  • Aside from retirement savings, health and stress have the strongest links to retirement timing.
  • Offering employees greater retirement security can help employers cultivate a less stressed, healthier and more engaged workforce.

Social protection for older persons: Key policy trends and statistics

October 3, 2014 Comments off

Social protection for older persons: Key policy trends and statistics
Source: International Labour Organization

This policy paper: (i) provides a global overview of the organization of pension systems, their coverage and benefits, as well as public expenditures on social security, in 178 countries; (ii) analyses trends and recent policies, e.g. extension of coverage in a large number of low- and middle-income countries; (iii) presents the negative impacts of fiscal consolidation and adjustment measures in a number of higher-income economies; and (iv) calls for the expansion of social protection in pursuit of crisis recovery, inclusive development and social justice.

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