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Working And Retiring Abroad: Overview On Pension Rights Within The EU

May 25, 2015 Comments off

Working And Retiring Abroad: Overview On Pension Rights Within The EU
Source: European Parliamentary Research Service
All European countries are free to decide who is to be insured in their social security schemes under their national legislation, which benefits are granted and under what conditions. However, the EU provides common rules to protect citizens’ social security rights when moving within Europe (EU 28 + Iceland, Liechtenstein, Norway and Switzerland). Detailed information on these aspects is available on the European Commission webpage ‘EU Social Security Coordination’, which also includes information on ‘Your rights country by country’.

With regard to pensions for EU nationals living in a different Member State, relevant information is also available on the Your Europe dedicated webpage.

2015 Retirement Confidence Survey — 2015 Results

May 22, 2015 Comments off

2015 Retirement Confidence Survey — 2015 Results
Source: Employee Benefit Research Institute
From press release (PDF):

American workers and retirees are expressing higher confidence about their ability to afford retirement this year, even though there is little sign they are taking the necessary steps to achieve that goal, according to the 25th annual Retirement Confidence Survey—the longest-running survey of its kind.

A key factor in American’s outlook on retirement is whether or not they have a retirement savings plan. The 2015 RCS by the nonpartisan Employee Benefit Research Institute and Greenwald & Associates finds that as the nation’s retirement confidence continues to rebound from the record lows experienced between 2009 and 2013, the increasing optimism is a result of those who indicate they and/or their spouse have a retirement plan, such as a defined contribution (401(k)-type) plan, defined benefit (pension) plan, or individual retirement account (IRA).

Retirement Throughout the Ages: Expectations and Preparations of American Workers

May 21, 2015 Comments off

Retirement Throughout the Ages: Expectations and Preparations of American Workers
Source: Transamerica Center for Retirement Studies

The 16th Annual Transamerica Retirement Survey finds American workers are continuing to recover from the Great Recession and its aftereffects. While the economy is recovering, the U.S. retirement landscape is also continuing to evolve, with increases in life expectancies, the need for Social Security reform, and an even greater need for individuals and families to plan and save for their future financial security. Most workers are rising to the challenge by savings, but are they saving enough? Are they properly planning?

Workers of all ages face opportunities and challenges for improving their retirement outlook. As we progress through our working lives, our circumstances change over time with age. While workers in their twenties are embarking on their careers with decades to plan and save, retirement for workers in their fifties and sixties is much closer on the horizon, with many needing to shore up the size of their nest eggs.

This study examines workers in their twenties, thirties, forties, fifties, and sixties and older to compare and contrast their retirement preparations and shed light on how they can navigate the future and improve their retirement outlook.

CRS — Federal Employees’ Retirement System: The Role of the Thrift Savings Plan (3/10/15)

May 20, 2015 Comments off

Federal Employees’ Retirement System: The Role of the Thrift Savings Plan (PDF)
Source: Congressional Research Service (via Cornell University ILR School)

Federal employees participate in one of two retirement systems. The Civil Service Retirement System (CSRS) was established in 1920 and covers only employees hired before 1984. Participants in the CSRS do not pay Social Security payroll taxes and they do not earn Social Security benefits. For a worker retiring after 30 years of federal service, a CSRS annuity will be equal to 56.25% of the average of his or her highest three consecutive years of basic pay.

Because the Social Security trust funds needed additional cash contributions to remain solvent, the Social Security Amendments of 1983 (P.L. 98-21) required federal employees hired after 1983 to participate in Social Security. To coordinate federal pension benefits with Social Security, Congress directed the development of a new retirement system for federal employees hired after 1983. The result was the Federal Employees’ Retirement System (FERS) Act of 1986 (P.L. 99- 335).

The Evolution of Retirement Wealth

May 18, 2015 Comments off

The Evolution of Retirement Wealth (PDF)
Source: Federal Reserve Board

Is the current mix of tax preferences for employer-sponsored pensions and individual retirement saving in the U.S. delivering the best possible retirement-preparedness across and within generations? Using data from the triennial Survey of Consumer Finances for 1989 through 2013, cohort-based analysis of life-cycle trajectories shows that (1) overall retirement plan participation was relatively stable or even rising through 2007, though participation fell noticeably in the wake of the Great Recession and has remained lower, (2) participation is strongly correlated with income, and the shift in the type of pension coverage occurred within—not just across—income groups, (3) relative to previous cohorts and a counterfactual lifecycle benchmark, the recent decline in retirement plan participation and defined contribution (DC) retirement account balanceto-income ratios is concentrated among younger families and lower-income families.

EBRI Notes — How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: Evidence from the EBRI Retirement Security Projection Model,® and Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2014

May 15, 2015 Comments off

How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: Evidence from the EBRI Retirement Security Projection Model,® and Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2014
Source: Employee Benefit Research Institute

How Much Needs to be Saved for Retirement After Factoring In Post-Retirement Risks: Evidence from the EBRI Retirement Security Projection Model

+ This analysis helps answer one of the most important questions that many defined contribution participants face before retirement: How much do I need to save each year for a “successful” retirement? It includes three of the major post-retirement risks (longevity, investment, and long-term care) while allowing the participant to also choose the probability of “success” that is best suited for their circumstances.

+ Given the assumptions used in this Notes article, a single male age 25 earning $40,000 with no previous savings would need a total contribution rate (employee and employer combined) of less than 3 percent per year until retirement (age 65) for a 50 percent chance of success. A 6.4 percent contribution rate would achieve a 75 percent success rate and a 14 percent contribution rate would achieve a 90 percent success rate. But if a male earning $40,000 were to wait until age 40 to begin saving, he would need a 6.5 percent total contribution rate for just a 50 percent chance of success and a 16.5 percent total contribution rate for a 75 percent chance of success; a 90 percent probability of success would be impossible even with a 25 percent contribution rate.

+ The analysis also shows how large a participant’s current account balance needs to be, by contribution rate, to be “on-track” for a particular level of retirement success.

Employer and Worker Contributions to Health Reimbursement Arrangements and Health Savings Accounts, 2006–2014

+ This report presents findings from the 2014 EBRI/Greenwald & Associates Consumer Engagement in Health Care Survey (CEHCS), as well as earlier surveys, examining the availability of health reimbursement arrangements (HRAs) and health-savings-account (HSA)-eligible plans (consumer-driven health plans, or CDHPs). It also looks at employer and individual contribution behavior.

+ The percentage of workers reporting that their employers contribute to the account decreased in 2014 for the first time since 2009. Among individuals with individual coverage and employer contributions, the percentage with contributions between $200–$999 decreased while contributions of $1,000 or more increased in 2014.

+ Workers’ contributions to their HSAs decreased slightly in 2014.

State IT Workforce: Facing Reality with Innovation

May 14, 2015 Comments off

State IT Workforce: Facing Reality with Innovation
Source: National Association of State Chief Information Officers

The predicted shortage in the state information technology (IT) workforce has been discussed and debated for over a decade and states have been confronted with numerous challenges when it comes to identifying gaps in a changing IT workforce. A major concern for state CIOs continues to be the significant number of state IT employees who are eligible for retirement or have been eligible, but have postponed retirement due to the economic downturn. In spite of this, there is evidence that the economy is recovering and some states are experiencing record numbers of retirement. This report outlines the current data on the state IT workforce and focuses on innovation, best practices and recommendations.

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