Newsdash Insight on Plan Design & Investment Strategy from PLANSPONSOR
January 7th, 2016
Benefits & Administration
How Much Income Will Social Security Replace?
The Social Security Administration calculates pre-retirement income replacement rates using career-average earnings, but indexed for the growth of wages economy-wide, and it says replacement rates average only around 40%. However, the Congressional Budget Office (CBO) has performed a new analysis of pre-retirement income replacement rates limited to workers’ last five years of substantial earnings, adjusted for growth in prices. Its data shows Social Security will actually replace more pre-retirement income than the average the Social Security Administration reports.Read more >
The average funding ratio for a typical U.S. corporate defined benefit plan rose, from 81.2% to 83.1%, over the last quarter of 2015, according to the Pension Fiscal Fitness Monitor of Legal & General Investment Management America Inc. (LGIMA).Read more >