Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
April 16th, 2015
Benefits & Administration
Gen X More Worried About Retirement than Boomers
When it comes to retirement preparation and investing, members of Generation X (ages 35 to 49) tend to be more worried than Baby Boomers (ages 50 to 68), a PNC Financial Services Group survey finds. Three quarters (73%) of Generation Xers agreed with the statement “I worry that my savings may not hold out for as long as I live,” as opposed to 55% of Boomers. Eighty-four percent of all survey respondents fear that health care costs will be too expensive in retirement, topping the list of all concerns among respondents. Generation X is slightly more worried than boomers (89% vs. 83%).Read more >
According to Towers Watson, 2014 was a bad year for private U.S. pensions. The company’s annual analysis of the top 100 corporate defined benefit (DB) plans found that the Towers Watson Pension 100 (TW Pension 100) had lost 8% of their average funded status at the close of last year—a fall from 90.2% at year-end 2013 to 80.2%. Aggregate funded status numbers for DB plans overall are similar—89% to 81% for that same period—despite the fact that the value of plan assets rose, the study found. Many of the gains the plans had made in 2013 were lost, and the funding shortfall, which had shrunk that year to $128 billion, from $297 billion in 2012, ballooned back to $248 billion.Read more >
CalPERS to Adjust Contributions for Increased Longevity
The California Public Employees’ Retirement System (CalPERS) Finance and Administration Committee recommended the Board of Administration adopt new pension contribution rates for State of California and school employers that are less than originally projected, but up from the 2014-15 Fiscal Year (FY). The changes in the rates for the 2015-16 FY are driven primarily by payroll growth, salary increases, and retirees living longer.Read more >
Financial anxiety can shoot tentacles into the workplace, according to PwC US’s 2015 Employee Financial Wellness Survey, with one in five respondents admitting that issues with personal finances are a distraction at work. Fewer than half think they will be able to retire when they desire, and employees’ top financial concerns are having enough emergency savings and being able to retire when they want.Read more >