The document discusses retirement planning and savings schemes. It notes that retirement is no longer a fixed age but a flexible period requiring financial planning. People are living longer so retirement savings must be optimized through saving more and working longer. Several myths about retirement are addressed, such as the idea that retirement means ending work, and that new careers are only for the young. Flexibility is becoming the new model for retirement. The document also provides an overview of corporate savings plans and their benefits for both employees and employers.
This document announces the Aegon Center for Longevity and Retirement and presents findings from the 4th Annual Aegon Retirement Readiness Survey of 16,000 people across 15 countries. Key findings include that while retirement readiness has improved slightly, many still lack a written retirement plan. Habitual savers are healthier and more confident in retirement than non-savers. Governments, employers, and individuals all have a role to play in encouraging habitual saving and making retirement security a shared responsibility.
The document summarizes the key findings of a survey conducted by the Gandalf Group for the Healthcare of Ontario Pension Plan regarding Canadians' views on retirement security. The survey found that most respondents are concerned about a potential retirement income crisis due to a lack of adequate workplace pensions and government support. Respondents believe this could increase senior poverty and burden taxpayers. They prefer pensions that guarantee income and most support expanding the Canada Pension Plan or implementing the proposed Ontario Retirement Pension Plan.
Financial Stress and Irish Employees MyMoney Report September 2013Amarach Research
Financial stress is common among Irish employees and may be negatively impacting productivity. 91% of employees report experiencing financial stress in the past year, with 26% experiencing high stress. Financial stress is estimated to cost Irish businesses €2.1 billion annually due to decreased productivity and increased absenteeism among stressed employees. Many employees lack financial knowledge and planning, do not have budgets, savings, or debt repayment plans. However, there is interest among employees and employers in financial wellness programs to help address these issues.
DC plans have largely failed to adequately prepare U.S. workers for retirement, leaving many relying solely on Social Security. By 2025, more employers are expected to adopt characteristics of successful pension plans to help employees create a fully funded retirement income stream. This includes improving investment governance, increasing savings contributions, utilizing more efficient portfolios, and providing tools to help employees translate savings into reliable monthly retirement income to replace lost pensions.
Employers are increasingly recognizing the need to help employees prepare for retirement. Only about one-third of employees covered by a retirement plan have over $100,000 saved. This savings gap poses challenges for both employees and employers. Employers can help by assessing employees' retirement readiness, communicating the importance of saving through tools and education programs, and designing retirement plans that automatically enroll employees and increase their contributions over time. Simple plan designs using target-date funds also support retirement readiness.
Australia has a three-pillar retirement system consisting of a universal age pension, compulsory employer superannuation contributions, and voluntary contributions. The superannuation system is large at over $1.8 trillion AUD but most assets are in defined contribution accounts that may provide an inadequate level of retirement income. The system has wide coverage due to mandatory contributions but faces challenges in providing sufficient retirement incomes and transitioning to post-retirement financial products. Improving outcomes will require cooperation between the government, regulators, and pension industry.
This document summarizes key topics regarding public pension and other post-employment benefits (OPEB) costs for governments. It discusses that both pensions and OPEBs are long-term benefit promises that require estimating future costs. It also notes that OPEB costs in particular can be highly volatile and extend decades into the future. The document reviews factors like accounting standards, funding levels, investment returns, and benefit changes that impact pension and OPEB costs and sustainability over the long run.
This document announces the Aegon Center for Longevity and Retirement and presents findings from the 4th Annual Aegon Retirement Readiness Survey of 16,000 people across 15 countries. Key findings include that while retirement readiness has improved slightly, many still lack a written retirement plan. Habitual savers are healthier and more confident in retirement than non-savers. Governments, employers, and individuals all have a role to play in encouraging habitual saving and making retirement security a shared responsibility.
The document summarizes the key findings of a survey conducted by the Gandalf Group for the Healthcare of Ontario Pension Plan regarding Canadians' views on retirement security. The survey found that most respondents are concerned about a potential retirement income crisis due to a lack of adequate workplace pensions and government support. Respondents believe this could increase senior poverty and burden taxpayers. They prefer pensions that guarantee income and most support expanding the Canada Pension Plan or implementing the proposed Ontario Retirement Pension Plan.
Financial Stress and Irish Employees MyMoney Report September 2013Amarach Research
Financial stress is common among Irish employees and may be negatively impacting productivity. 91% of employees report experiencing financial stress in the past year, with 26% experiencing high stress. Financial stress is estimated to cost Irish businesses €2.1 billion annually due to decreased productivity and increased absenteeism among stressed employees. Many employees lack financial knowledge and planning, do not have budgets, savings, or debt repayment plans. However, there is interest among employees and employers in financial wellness programs to help address these issues.
DC plans have largely failed to adequately prepare U.S. workers for retirement, leaving many relying solely on Social Security. By 2025, more employers are expected to adopt characteristics of successful pension plans to help employees create a fully funded retirement income stream. This includes improving investment governance, increasing savings contributions, utilizing more efficient portfolios, and providing tools to help employees translate savings into reliable monthly retirement income to replace lost pensions.
Employers are increasingly recognizing the need to help employees prepare for retirement. Only about one-third of employees covered by a retirement plan have over $100,000 saved. This savings gap poses challenges for both employees and employers. Employers can help by assessing employees' retirement readiness, communicating the importance of saving through tools and education programs, and designing retirement plans that automatically enroll employees and increase their contributions over time. Simple plan designs using target-date funds also support retirement readiness.
Australia has a three-pillar retirement system consisting of a universal age pension, compulsory employer superannuation contributions, and voluntary contributions. The superannuation system is large at over $1.8 trillion AUD but most assets are in defined contribution accounts that may provide an inadequate level of retirement income. The system has wide coverage due to mandatory contributions but faces challenges in providing sufficient retirement incomes and transitioning to post-retirement financial products. Improving outcomes will require cooperation between the government, regulators, and pension industry.
This document summarizes key topics regarding public pension and other post-employment benefits (OPEB) costs for governments. It discusses that both pensions and OPEBs are long-term benefit promises that require estimating future costs. It also notes that OPEB costs in particular can be highly volatile and extend decades into the future. The document reviews factors like accounting standards, funding levels, investment returns, and benefit changes that impact pension and OPEB costs and sustainability over the long run.
The document is a report from the Transamerica Center for Retirement Studies that examines the retirement outlook of unemployed and underemployed workers. Some key findings are that over half of those displaced less than a year are unemployed, while over half displaced over a year are underemployed. Nearly one in five of those unemployed over a year have dropped out of the workforce. The report provides recommendations to help improve the retirement readiness of unemployed and underemployed individuals.
Facing an aging population, longer lifespans, and a shift to the defined contributions model, India is overhauling its pension system. But the New Pension System (NPS) faces stiff competition from Employees' Provident Fund (EPF) and other options.
Financial planning strategies towards retirement as perceived by potential r...Alexander Decker
This document examines financial planning strategies for retirement as perceived by university lecturers in the Niger Delta region of Nigeria. It discusses various strategies like personal savings accounts, fixed deposits, cooperative societies, stock investments, and pension plans. The study aimed to determine if lecturers' perceptions of these strategies differed based on factors like university type or demographics. A questionnaire was administered to 227 lecturers across 5 universities, and statistical tests found significant differences in perceptions of personal savings but not the other strategies. The study recommends consideration of these findings for effective retirement planning.
Global retirement research: women balancing family, career, & financial securityAegon
Aegon's new report – Women: balancing family, career & financial security is based on findings from the 2014 global Aegon Retirement Readiness Survey. This is one of the largest global retirement surveys of its kind.
The document provides an introduction to retirement planning basics. It discusses why individuals need to take retirement planning into their own hands given uncertainties around social security and pension benefits. It also notes the need to plan for unforeseen medical expenses in retirement and potential estate planning goals. The document outlines key factors to consider when determining how much money is needed for retirement, including desired retirement age, expected annual income needs, current savings, expected investment returns, and any pension benefits.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
Strategies for a sustainable income in retirementJohn Brown
This document discusses strategies for sustainable income in retirement. It notes that people are living longer in retirement so income needs to last 25 years or more. Successful retirement requires preparation for longevity, rising costs, healthcare expenses, potential changes to Social Security, and investment risks. The document outlines identifying reliable income sources, choosing appropriate withdrawal rates, managing risks through diversification and rebalancing, and using a bucket approach to funds for short, mid, and long-term income needs.
[ARCHIVE] Aviva Real Retirement Report Summer 2012Aviva plc
The focus for the Summer 2012 Real Retirement Report is the transition between employment and retirement. What role do employers play? What role do employees want them to play? What type of help is expected?
Are Veterinarians Ready $$ For Retirementmjmcgaunn
The document discusses retirement planning and provides strategies for healthcare professionals to successfully prepare for retirement. It finds that those who plan early and have written financial goals accumulate much more wealth than those who don't plan. Having diversified savings across different accounts and asset classes also contributes to financial success in retirement. The document recommends healthcare professionals consider retirement plans like 401(k)s that allow higher contributions for older owners.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
This document discusses financial wellness and its importance for employees and employers. It notes that many employees are financially unprepared for retirement and live paycheck to paycheck, causing high stress. This lack of financial wellness costs employers over $5 million per year in lost productivity, healthcare costs, and turnover. Financial wellness programs aim to help employees better manage finances and save for retirement. They are shown to reduce employee stress and distractions at work. The document advocates that employers assess their needs and select a financial wellness provider and programs to integrate into their benefits to improve employee and company outcomes.
Essential Fiduciary Training Webinar | Full Slide Deck | Rea & AssociatesRea & Associates
This webinar covers various topics related to retirement plans and fiduciary responsibilities. It includes presentations on defining retirement success, the importance of a prudent fiduciary process, and a case law update on fiduciary duty. The first presentation discusses defining goals for retirement and strategies to achieve retirement security. The second presentation outlines the fiduciary process, including formalizing policies and monitoring service providers. The third presentation reviews examples from case law where fiduciaries failed to meet their responsibilities and the resulting consequences. The webinar aims to provide fiduciaries with information to maintain compliance and effectively manage retirement plans.
Benefits and beyond c. 12 govt sponsored and mandatedtemurphy
The document discusses government sponsored and mandated retirement and health benefits in the United States, focusing on Social Security and Medicare. Social Security is a defined benefit plan funded by payroll taxes that provides retirement benefits based on average lifetime earnings. It faces long-term funding issues due to increasing life expectancies and an aging population. Medicare provides health coverage for those over 65 and is funded through a payroll tax. It has become increasingly important as employer-sponsored retiree health coverage has declined. The document examines eligibility rules, benefit structures, and contemporary issues for both programs.
The document discusses how increased choice in UK pension benefits has created behavioral complications for members. It examines potential behaviors people may exhibit given more freedom over how they access pension funds. While choice is welcomed, there is concern that too much could overwhelm people and reduce optimal outcomes. The key question is how much choice is dangerous and how can its effects be managed. The document suggests employers understand member behaviors to plan accordingly and provide support through engagement programs to help people make informed retirement decisions.
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
This document discusses retirement readiness challenges and opportunities for plan sponsors and employees. A key point is that 32 million Americans may never be ready to retire due to challenges in saving enough. The document outlines retirement trends, the impact of financial stress on employees and employers, and strategies plan sponsors can adopt to help improve participant outcomes, such as providing retirement readiness assessments and financial wellness programs.
This document summarizes the methodology and key findings of a survey about millennial and retiree savings and spending. It provides details on:
1) The methodology which included surveys of 3,026 working adults contributing to 401(k) plans, 1,027 recently retired adults, and planned surveys of 250 millennial non-401(k) participants. Respondents were weighted to be nationally representative.
2) Some preliminary findings showing that millennials were more likely than other generations to feel overqualified for their current job.
3) An agenda outlining topics to be covered such as the economic climate, profiles of workers and retirees, and descriptive information.
4) Charts and graphs showing
- Two new reports advise retirees to invest less in stocks and more in annuities, with one report recommending just 5-25% in stocks to minimize risk of running out of money.
- The GAO report also recommends annuities to avoid outliving savings, as well as delaying social security, working longer, investing wisely, and withdrawing no more than 3-6% annually in retirement.
- While annuities protect against outliving savings, experts say more education is needed to help people understand retirement savings needs and goals before focusing on products.
The document discusses findings from the 2013 Aegon Retirement Readiness Survey, which examined retirement preparedness across 12 countries. The survey found low overall retirement readiness based on a Retirement Readiness Index score of 4.89 out of 10. Most employees expect future generations will be worse off in retirement and believe government and employer benefits will be reduced. While many aspire to leisure and freedom in retirement, concerns about insecurity, poverty, and ill health were also commonly associated with retirement.
The Global articipation Finance Summit, Istanbul 16th November 2017Sohail Jaffer
This document discusses various topics related to retirement planning and pension funds around the world. It notes that people are living longer while fewer people are able to financially support retired populations. Various surveys find that most people associate positive terms with retirement but also have concerns about being able to afford retirement due to low interest rates, rising healthcare costs, and high national debt levels. The best performing retirement systems are found in Nordic countries. The document also discusses retirement funding challenges in different regions and the growth of socially responsible investing options for pension funds.
Aegon Fact Sheet Flexible Retirement in CanadaAegon
Canada has implemented policies since the 1990s to promote more flexible and transitional retirements. These policies were driven by labor shortages due to falling birth rates and the need to keep experienced employees in the workforce longer. The Canada Pension Plan removed mandatory retirement provisions to provide flexibility. Additionally, the rising costs of pensions are leading to reforms like increasing the eligibility age for Old Age Security benefits from 65 to 67 starting in 2023. However, questions remain about whether employers can adapt to an aging workforce and align private and public pension plans. Survey data shows most Canadian workers envision a flexible retirement transition but there are gaps in retraining opportunities from employers.
Global 2016 Aegon Retirement Readiness ReportAegon
This year’s report underlines that there is still a long way to go before retirement readiness can be declared “mission accomplished.” In many ways, change over the last five years has not been as fast as hoped. Indeed, the fact that globally the Aegon Retirement Readiness Index has actually decreased slightly over the last 12 months underlines that there needs to be a much more concerted and sustained effort by all involved – from governments and employers to pension providers – to help ensure that people understand what they need to do in order to achieve financial security and meet their expectations for retirement. In short, the world needs a retirement wake-up call. For further information about Aegon's retirement research visit http://www.aegon.com/thecenter
The document is a report from the Transamerica Center for Retirement Studies that examines the retirement outlook of unemployed and underemployed workers. Some key findings are that over half of those displaced less than a year are unemployed, while over half displaced over a year are underemployed. Nearly one in five of those unemployed over a year have dropped out of the workforce. The report provides recommendations to help improve the retirement readiness of unemployed and underemployed individuals.
Facing an aging population, longer lifespans, and a shift to the defined contributions model, India is overhauling its pension system. But the New Pension System (NPS) faces stiff competition from Employees' Provident Fund (EPF) and other options.
Financial planning strategies towards retirement as perceived by potential r...Alexander Decker
This document examines financial planning strategies for retirement as perceived by university lecturers in the Niger Delta region of Nigeria. It discusses various strategies like personal savings accounts, fixed deposits, cooperative societies, stock investments, and pension plans. The study aimed to determine if lecturers' perceptions of these strategies differed based on factors like university type or demographics. A questionnaire was administered to 227 lecturers across 5 universities, and statistical tests found significant differences in perceptions of personal savings but not the other strategies. The study recommends consideration of these findings for effective retirement planning.
Global retirement research: women balancing family, career, & financial securityAegon
Aegon's new report – Women: balancing family, career & financial security is based on findings from the 2014 global Aegon Retirement Readiness Survey. This is one of the largest global retirement surveys of its kind.
The document provides an introduction to retirement planning basics. It discusses why individuals need to take retirement planning into their own hands given uncertainties around social security and pension benefits. It also notes the need to plan for unforeseen medical expenses in retirement and potential estate planning goals. The document outlines key factors to consider when determining how much money is needed for retirement, including desired retirement age, expected annual income needs, current savings, expected investment returns, and any pension benefits.
When it comes to planning for retirement, the earlier you start, the more potential your money has to grow. Retirement planning is not simply about paying regularly into your pension and forgetting about it. Instead, it is essential to review your progress against your retirement goals and take account of changes that may affect your plans. For more information visit https://www.tudorfranklin.co.uk
Strategies for a sustainable income in retirementJohn Brown
This document discusses strategies for sustainable income in retirement. It notes that people are living longer in retirement so income needs to last 25 years or more. Successful retirement requires preparation for longevity, rising costs, healthcare expenses, potential changes to Social Security, and investment risks. The document outlines identifying reliable income sources, choosing appropriate withdrawal rates, managing risks through diversification and rebalancing, and using a bucket approach to funds for short, mid, and long-term income needs.
[ARCHIVE] Aviva Real Retirement Report Summer 2012Aviva plc
The focus for the Summer 2012 Real Retirement Report is the transition between employment and retirement. What role do employers play? What role do employees want them to play? What type of help is expected?
Are Veterinarians Ready $$ For Retirementmjmcgaunn
The document discusses retirement planning and provides strategies for healthcare professionals to successfully prepare for retirement. It finds that those who plan early and have written financial goals accumulate much more wealth than those who don't plan. Having diversified savings across different accounts and asset classes also contributes to financial success in retirement. The document recommends healthcare professionals consider retirement plans like 401(k)s that allow higher contributions for older owners.
The document discusses various risks to consider for retirement planning such as longevity risk, inflation risk, and investment risk. It introduces variable annuities as a potential solution to help mitigate these risks by providing guaranteed lifetime income, protection against market downturns, and upside potential from stock market investments. Variable annuities can help secure retirement income through features such as living benefits and death benefits. Working with a financial advisor can help assess if a variable annuity is a suitable strategy for individual retirement goals and risk tolerance.
This document discusses financial wellness and its importance for employees and employers. It notes that many employees are financially unprepared for retirement and live paycheck to paycheck, causing high stress. This lack of financial wellness costs employers over $5 million per year in lost productivity, healthcare costs, and turnover. Financial wellness programs aim to help employees better manage finances and save for retirement. They are shown to reduce employee stress and distractions at work. The document advocates that employers assess their needs and select a financial wellness provider and programs to integrate into their benefits to improve employee and company outcomes.
Essential Fiduciary Training Webinar | Full Slide Deck | Rea & AssociatesRea & Associates
This webinar covers various topics related to retirement plans and fiduciary responsibilities. It includes presentations on defining retirement success, the importance of a prudent fiduciary process, and a case law update on fiduciary duty. The first presentation discusses defining goals for retirement and strategies to achieve retirement security. The second presentation outlines the fiduciary process, including formalizing policies and monitoring service providers. The third presentation reviews examples from case law where fiduciaries failed to meet their responsibilities and the resulting consequences. The webinar aims to provide fiduciaries with information to maintain compliance and effectively manage retirement plans.
Benefits and beyond c. 12 govt sponsored and mandatedtemurphy
The document discusses government sponsored and mandated retirement and health benefits in the United States, focusing on Social Security and Medicare. Social Security is a defined benefit plan funded by payroll taxes that provides retirement benefits based on average lifetime earnings. It faces long-term funding issues due to increasing life expectancies and an aging population. Medicare provides health coverage for those over 65 and is funded through a payroll tax. It has become increasingly important as employer-sponsored retiree health coverage has declined. The document examines eligibility rules, benefit structures, and contemporary issues for both programs.
The document discusses how increased choice in UK pension benefits has created behavioral complications for members. It examines potential behaviors people may exhibit given more freedom over how they access pension funds. While choice is welcomed, there is concern that too much could overwhelm people and reduce optimal outcomes. The key question is how much choice is dangerous and how can its effects be managed. The document suggests employers understand member behaviors to plan accordingly and provide support through engagement programs to help people make informed retirement decisions.
Five Trends Reshaping the Global Pension Fund IndustryState Street
This executive briefing explores how pension funds are adapting to the challenges of a new investment environment. The research presented in this report is based on an international State Street survey, conducted by the Economist Intelligence Unit in August 2014, of 134 senior executives in the pension fund industry.
This document discusses retirement readiness challenges and opportunities for plan sponsors and employees. A key point is that 32 million Americans may never be ready to retire due to challenges in saving enough. The document outlines retirement trends, the impact of financial stress on employees and employers, and strategies plan sponsors can adopt to help improve participant outcomes, such as providing retirement readiness assessments and financial wellness programs.
This document summarizes the methodology and key findings of a survey about millennial and retiree savings and spending. It provides details on:
1) The methodology which included surveys of 3,026 working adults contributing to 401(k) plans, 1,027 recently retired adults, and planned surveys of 250 millennial non-401(k) participants. Respondents were weighted to be nationally representative.
2) Some preliminary findings showing that millennials were more likely than other generations to feel overqualified for their current job.
3) An agenda outlining topics to be covered such as the economic climate, profiles of workers and retirees, and descriptive information.
4) Charts and graphs showing
- Two new reports advise retirees to invest less in stocks and more in annuities, with one report recommending just 5-25% in stocks to minimize risk of running out of money.
- The GAO report also recommends annuities to avoid outliving savings, as well as delaying social security, working longer, investing wisely, and withdrawing no more than 3-6% annually in retirement.
- While annuities protect against outliving savings, experts say more education is needed to help people understand retirement savings needs and goals before focusing on products.
The document discusses findings from the 2013 Aegon Retirement Readiness Survey, which examined retirement preparedness across 12 countries. The survey found low overall retirement readiness based on a Retirement Readiness Index score of 4.89 out of 10. Most employees expect future generations will be worse off in retirement and believe government and employer benefits will be reduced. While many aspire to leisure and freedom in retirement, concerns about insecurity, poverty, and ill health were also commonly associated with retirement.
The Global articipation Finance Summit, Istanbul 16th November 2017Sohail Jaffer
This document discusses various topics related to retirement planning and pension funds around the world. It notes that people are living longer while fewer people are able to financially support retired populations. Various surveys find that most people associate positive terms with retirement but also have concerns about being able to afford retirement due to low interest rates, rising healthcare costs, and high national debt levels. The best performing retirement systems are found in Nordic countries. The document also discusses retirement funding challenges in different regions and the growth of socially responsible investing options for pension funds.
Aegon Fact Sheet Flexible Retirement in CanadaAegon
Canada has implemented policies since the 1990s to promote more flexible and transitional retirements. These policies were driven by labor shortages due to falling birth rates and the need to keep experienced employees in the workforce longer. The Canada Pension Plan removed mandatory retirement provisions to provide flexibility. Additionally, the rising costs of pensions are leading to reforms like increasing the eligibility age for Old Age Security benefits from 65 to 67 starting in 2023. However, questions remain about whether employers can adapt to an aging workforce and align private and public pension plans. Survey data shows most Canadian workers envision a flexible retirement transition but there are gaps in retraining opportunities from employers.
Global 2016 Aegon Retirement Readiness ReportAegon
This year’s report underlines that there is still a long way to go before retirement readiness can be declared “mission accomplished.” In many ways, change over the last five years has not been as fast as hoped. Indeed, the fact that globally the Aegon Retirement Readiness Index has actually decreased slightly over the last 12 months underlines that there needs to be a much more concerted and sustained effort by all involved – from governments and employers to pension providers – to help ensure that people understand what they need to do in order to achieve financial security and meet their expectations for retirement. In short, the world needs a retirement wake-up call. For further information about Aegon's retirement research visit http://www.aegon.com/thecenter
The document discusses keeping employees happy and prepared for retirement. It notes that many Americans are underprepared for retirement, with average 401k balances of only $60,000. Employers play a key role in helping employees plan and save through competitive benefits packages that include retirement plans, education, and other perks. Creating a culture of financial wellness can help recruit, reward, and retain employees while also benefiting the company.
This report lets you see for yourself what others
think and feel about their retirement. I hope it will
also encourage some readers to take more control
of their own financial future. The ability to shape your
retirement is in your own hands with the power
of planning.
The article discusses three approaches to measuring retirement benefit adequacy: replacement ratios, minimum needs measures, and cash flow analysis. It summarizes a Society of Actuaries study that used a simulation model to analyze how different factors like income, wealth, health risks, and retirement decisions impact retiree welfare. Key findings include that many retirees may see a drop in standard of living, delaying retirement significantly improves adequacy, health and long-term care risks can derail plans more than investment risk, and employers should consider shock events in benefits design and offer education resources.
The sixth annual Aegon Retirement Readiness Survey confirms that the gap between people’s expectations for retirement and the reality remains stark. What’s more, it illustrates that health and wealth in retirement are closely linked.
Workers remain uneasy about their financial security and retirement. While employee satisfaction with finances has increased since the financial crisis, retirement confidence remains below pre-crisis levels. Many workers worry about affording healthcare costs in retirement. Defined benefit plan participants are more secure about retirement income than those with only defined contribution plans. Despite economic recovery, employees have prioritized reducing debt and spending less.
- Retirement security has become the top concern of American workers according to a survey by Towers Watson. 78% of older workers and 75% of those in frozen defined benefit plans worry about having a financially secure retirement.
- Most employees rely on their employer's retirement plan as their primary savings for retirement, with 74% citing it as their main source compared to 61% in 2009. Younger workers especially depend on employer plans.
- While satisfaction with retirement plans has increased to 67%, satisfaction with health plans has declined to 59% as costs have risen. Only 48% of those in high-deductible plans are satisfied with healthcare.
Aegon Retirement Readiness Report - The New Flexible RetirementAegon
The concept of retirement is rapidly changing. As people live longer, retirement will become a more active life stage, with more people looking to blend work and leisure. But not all countries are acting on this global trend.
People who want to make a difference are often attracted to public service, where a willingness to meet the challenges facing society is a critical competency. One leading reward for their dedication has typically been a stable pension. But the 2008 financial crisis derailed expected growth in government pension funds, leaving pensions in a state of crisis.
The document discusses the results of a survey of over 2,600 employees in Ireland about employee benefits. The key findings are:
1) The most significant benefits to employees are private health insurance, pension, paid sick days, educational support, and flexi-time. However, many employees are not currently receiving these top-rated benefits.
2) Younger employees value health and wellness benefits while older employees value retirement benefits more. Benefits should address different life stages.
3) Educational support is highly valued but rarely received, suggesting it could be an effective retention tool if structured properly.
4) Flexible benefits packages may better meet the diverse needs of different generations in the workforce.
This document summarizes a white paper from the Actuaries Institute on retirement incomes in Australia. Key findings include:
1. The superannuation system is generally doing what it was designed to do but will not deliver a comfortable retirement for all.
2. The least wealthy sections will continue to rely entirely on the Age Pension for a modest lifestyle. Younger cohorts will be marginally better off.
3. The average taxpayer subsidy via the Age Pension will reduce for future retirees due to the Superannuation Guarantee. This will partly offset rising costs of the Age Pension.
People at Work 2022: A Global Workforce View" del ADP Research InstituteAproximacionAlFuturo
Workers want change and are re-evaluating what is important in a job beyond just salary. They are more focused on well-being, life outside of work, flexibility and company ethics/values. Many are considering changing jobs.
Job satisfaction is high but expectations are also high around pay raises and flexibility. Stress levels are increasing which impacts work.
While pay is a priority, many would accept less pay for better work-life balance or flexibility. Remote work is popular with many considering relocating or already doing so. Forcing a return could cause people to leave.
The document is a summary of a global workforce survey analyzing attitudes, satisfaction, priorities and expectations. It finds workers want more flexibility
Retirement Preparations in a New Age of Self-EmploymentAegon
The self-employed have a flexible vision of retirement. They plan on working past traditional retirement age, easing into retirement, and fully retiring at an older age. The Aegon Retirement Readiness Survey 2016
SEIU Healthcare is launching a new retirement plan called My65+ to address the lack of retirement savings options for its lower-income members who earn less than $50,000 annually and have no employer pension plan. My65+ will have very low fees of 0.22% for investments and $7 per month for administration. It uses a TFSA structure to avoid the "clawback" of government benefits that occurs with RRSPs for lower-income seniors. Modeling shows My65+ can deliver 3-4 times more retirement income than a typical RRSP due to lower fees and preserving benefits. The plan will be governed by a non-profit board and use low-cost index funds from Vanguard for investments
The document discusses the upcoming pension reforms in the UK and their anticipated impact. It explores why reforms are needed due to an aging population, lack of retirement savings, and other factors. It then analyzes the potential challenges to the success of the reforms, such as younger generations prioritizing other expenses, rising personal debt levels, and affordability issues. While the reforms aim to encourage more retirement savings, changing perceptions and building trust in pensions will be important for their long-term effectiveness.
This document summarizes the benefits of delaying retirement beyond the typical retirement age of 60 years. Some key points:
1) Financial reasons are a major motivation for delaying retirement as many people do not have sufficient retirement savings to cover their living expenses for their expected lifespan. Working additional years allows people to save more and build a larger retirement corpus.
2) Other benefits of delaying retirement include continuing to receive employer-provided health insurance and other benefits, pursuing passions and staying active and engaged, and avoiding financial dependence on children.
3) People who delay retirement by 5-10 years can significantly increase their retirement corpus even if they only earn 50-70% of their pre-retirement salary. This
Similar to Interactive Symposium on "Corporate Savings & Retirement Schemes" (20)
STREETONOMICS: Exploring the Uncharted Territories of Informal Markets throug...sameer shah
Delve into the world of STREETONOMICS, where a team of 7 enthusiasts embarks on a journey to understand unorganized markets. By engaging with a coffee street vendor and crafting questionnaires, this project uncovers valuable insights into consumer behavior and market dynamics in informal settings."
Financial Assets: Debit vs Equity Securities.pptxWrito-Finance
financial assets represent claim for future benefit or cash. Financial assets are formed by establishing contracts between participants. These financial assets are used for collection of huge amounts of money for business purposes.
Two major Types: Debt Securities and Equity Securities.
Debt Securities are Also known as fixed-income securities or instruments. The type of assets is formed by establishing contracts between investor and issuer of the asset.
• The first type of Debit securities is BONDS. Bonds are issued by corporations and government (both local and national government).
• The second important type of Debit security is NOTES. Apart from similarities associated with notes and bonds, notes have shorter term maturity.
• The 3rd important type of Debit security is TRESURY BILLS. These securities have short-term ranging from three months, six months, and one year. Issuer of such securities are governments.
• Above discussed debit securities are mostly issued by governments and corporations. CERTIFICATE OF DEPOSITS CDs are issued by Banks and Financial Institutions. Risk factor associated with CDs gets reduced when issued by reputable institutions or Banks.
Following are the risk attached with debt securities: Credit risk, interest rate risk and currency risk
There are no fixed maturity dates in such securities, and asset’s value is determined by company’s performance. There are two major types of equity securities: common stock and preferred stock.
Common Stock: These are simple equity securities and bear no complexities which the preferred stock bears. Holders of such securities or instrument have the voting rights when it comes to select the company’s board of director or the business decisions to be made.
Preferred Stock: Preferred stocks are sometime referred to as hybrid securities, because it contains elements of both debit security and equity security. Preferred stock confers ownership rights to security holder that is why it is equity instrument
<a href="https://www.writofinance.com/equity-securities-features-types-risk/" >Equity securities </a> as a whole is used for capital funding for companies. Companies have multiple expenses to cover. Potential growth of company is required in competitive market. So, these securities are used for capital generation, and then uses it for company’s growth.
Concluding remarks
Both are employed in business. Businesses are often established through debit securities, then what is the need for equity securities. Companies have to cover multiple expenses and expansion of business. They can also use equity instruments for repayment of debits. So, there are multiple uses for securities. As an investor, you need tools for analysis. Investment decisions are made by carefully analyzing the market. For better analysis of the stock market, investors often employ financial analysis of companies.
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Interactive Symposium on "Corporate Savings & Retirement Schemes"
1. Interactive Symposium on "Corporate Savings & Retirement
Schemes”
Successful Financial Planning for
Retirement
Sohail Jaffer
2. Hard realities of the game of Cricket – An Analogy w.r.t. Insurance
An uncertain Retired Hurt
2014 … a year that shocked everyone
An inevitable Retirement
Lack of adequate protection endangers life …
2
3. Source: Metlife
No longer an automatic one-off event that
occurs at a pre-set age – 60 (women)/65
(men)
People are happy to keep working not just
because their pensions have fallen short of
expectations but also because they would miss
the social interaction at workFinancial planning to encompass both
saving more & working longer, to optimise
the use of both financial and human capital
People are living longer and are healthier, but
often leave the labour force just because they
reach a ‘standard’ pension age. This is a waste of
resourcesPlanning could ease financial burden &
enhance later life lifestyles
3
4. Source: Merrill Lynch (Bank of America Corporation)
What is driving the change ?
Increasing life expectancy, which has produced a
retirement that can last 20 years or more
Elimination of pensions for most workers, shifting
burden for funding retirement from employers to
retirees
Recent economic uncertainty, which has been a
wake-up call for many people that it is not financially
sustainable to retire without some employment
income
Re-visioning of later life, new generations seek
greater purpose, stimulation, social engagement &
fulfillment in retirement.
Myth 1: Retirement means the end of work.
Reality: Over 7 in 10 pre-retirees want to work
in retirement. In the near future, it will be
increasingly unusual for retirees not to work.
Myth 2: Retirement is a time of decline.
Reality: New generation of working retirees is
pioneering a more engaged & active retirement
- the New Retirement Workscape - which is
comprised of 4 different phases:
(1) Pre-Retirement (2) Career Intermission
(3) Reengagement (4) Leisure
Myth 3: People primarily work in retirement
because they need money.
Reality: 4 types of working retirees:
(1) Driven Achievers (2) Caring Contributors
(3) Life Balancers (4) Earnest Earners
Myth 4: New career ambitions are for young people.
Reality: Nearly 3 out of 5 retirees launch into a new line of work, & working retirees are 3 times more
likely than pre-retirees to be entrepreneurs
4
5. Source: Nielsen & Aegon
Recessionary sentiment improved for most in
2014 - Global discretionary spending/saving
intentions were either flat or declined slightly
in 4Q14.
1-in-10 plan to save for retirement (10%).
MENA – For 4Q14, Q-on-Q discretionary spending
intentions increased 1% points to 6% for those planning
to save for retirement.
The economic outlook revives, but concerns about future
retirement remain
There is a strong need to undertake financial planning
The solution lies in making retirement planning easier
Flexibility will become the new model of retirement
The emotional
values people
associate with
retirement -
Leisure 46%
Freedom 41%
Enjoyment 29%
Insecurity 22%
People aspire to have an active
retirement which blends travel,
family, hobbies and work -
Travel 62%
Family & Friends 59 %
New Hobbies 49%
Volunteer Work 25%
Continue Working 15%
Live Abroad 13%
Start a Business 12%
Study 12%
Global retirement readiness
rebounds in 2014 (5.8) > 2013
(4.9) 5
6. Most Australians don’t have enough money to retire on.
Industry must be able to help retirees by providing products which generate a regular & stable income
stream, provide longevity risk management & which are flexible enough to deal with unexpected life
events.
This will help prevent retirees over spending, and running out of income earlier than expected, or
conversely under spending & leading an unnecessarily frugal life.
Key Message
…
Case Study
– Australia
Source: The Association of Superannuation Funds of Australia (ASFA) & State Street Global Advisors (SSgA)
The Standard incorporates expenditure on:
o Communications
o Private health insurance
o Energy
o Clothing
o Household goods and services
o Recreation
o Transport
Portfolio diversification & a greater allocation to growth assets are likely to help retirees make their
superannuation last longer, at a time when Australians are living longer than ever before.
6
7. Source: Natixis Global Asset Management CoreData Global Retirement Index (GRI)
Good economic
performance backed by
high quality of life gives
retirees in UAE a leg up
compared to other nations
UAE tops ranking in old
age dependency ratio &
inflation indicators,
suggesting that it wouldn’t
face same demographic
challenges as many other
developed nations
will, in the foreseeable
futureUAE climbs one place in
the rankings & continues to
enjoy a spot in top 30
countries for retirement in
2015.
2015 Natixis Global Asset Management CoreData Global Retirement
Index (GRI)
7
8. Source: HSBC, The Future of Retirement, UAE Report, 2014
“27% of pre-retirees
surveyed say they
cannot afford to retire”
12 years - On
average, how long
pre-retirees expect
their retirement
saving & investments
(excluding pensions)
to last in retirement
16 years - Typical
retirement life
expectancy in UAE.
(based on full
retirement at age 60 &
average life expectancy
of 76 years)
HSBC - 2014 The Future of Retirement Survey
On average, retirees in
the UAE face a 4 year
retirement funding gap
46% of pre-retirees are not currently, or do not
intend to start, saving specifically for retirement
76% of pre-retirees are concerned about not
having enough money to live comfortably in
retirement
For 87% of working age people, saving for
retirement is not their main priority
55% of pre-retirees who are not adequately
preparing for a comfortable retirement admit they
did not start savings early enough
Family and Starting a business are the
most
important retirement aspirations
Financial hardship and poor health are the biggest
retirement fears
15 vs. 9: People expect to spend 15 years in
retirement, but their savings to run out after 9
years
8
9. Expats currently living in the Middle East are
more likely to consider moving away for
retirement reasons than their counterparts in
Europe and Asia.
Retired expats are more likely to be first time
expats (63% compared with the global expat
average of 53%), rather than serial expats -
perhaps indicating that they’re unafraid of
new challenges & big changes.
Source: HSBC
How expats are saving for retirement
globally:
Retired expats are making sure they’re spending their
retirement exactly how they want.
United Arab Emirates (UAE) emerges as one of the
costlier expat destinations, with more than half saying
that they would choose to leave because it is too
expensive (60%) or for retirement (23%).
9
10. Source: Source: Manjoo, (2012), An Appraisal of Longevity Risk: Conventional and Islamic Perspectives., Kuala Lumpur: ISRA, Booz & Company Analysis
Three Pillars of Retirement Planning
Three-Pillar System
State Pension
(Social
Security
Schemes)
Occupational
Pension
Private
Savings
Secures a
minimum
standard of
living
Maintains
employee’s
current standard
of living
Covers
additional needs
Financed with
employer and/or
employee
contributions
Financed with
personal
savings
Privately
managed
Financed with
(payroll) tax
Publicly
managed
Privately
managed
Pillar 1: State Pension (Social Security Schemes)
Only cover nationals - Social security
schemes in the Gulf Cooperation Council
(GCC) cover nationals & are very generous
defined benefit arrangements
Replacement ratio of 80%
Most national employees retire by age 60 with their
social security schemes paying 80% of what they were
earning prior to retirement
Young population demographics
Median age in twenties but it will increase in near future
due to increases in life expectancy and decreases in
fertility rates
Huge drop in old-age support ratio by 2050
Ratio of contributing workers to retirees is expected to
drop from the current level of 25:1 to approximately 3:1
by 2050
Current partially funded schemes are unsustainable and
governments are introducing reforms albeit at a slower
pace
10
11. Pillar 2: Occupational Pension (Gratuity) in
GCC
US$ 5 billion
Value of unfunded end of service gratuity
payments in the UAE (estimated by Milliman)
67% of corporates
Expect an annual increase in their total
salary expense of over 5% over the next 3
years
Findings of a recent employer survey on End
of Service Gratuity
What do you do with
ESG* funds?
Interest in
establishing a trust
for ESG* funds
54%
24%
22%
Part of working
capital
Don't know
Invested
36%
8%
56%
Yes
Already
established
Not under
consideration
Only 8% of corporates have implemented an
End of Service Gratuity (ESG) funding
mechanism
Corporate Savings Plan –
Value Proposition for Corporates
End of
Service
Gratuity
funding
The Plan provides a
mechanism for employers to
fund end of service gratuity
(ESG)*
Competitive
Group Benefit
Program
Corporates can provide employees a
cheaper way to access retirement
planning, by offering the Plan to employees
Enhance
Employee
Retention
Corporates can reduce cost of recruiting &
training new employees
Source: SEI: Employment trends & managing End of Service Benefits in the Middle East * Employers are required to pay ESG to employees under UAE labour
54% of corporates have or are interested in separating
assets in order to protect and ear-mark assets to fund ESG
• Good employee benefits attract and retain talented staff
• Happier employees, with peace of mind, are more
productive
35% - HR decision makers list employee retention as top
objective
• Vesting scales support employee retention
11
12. Corporate Savings Plan –
Benefits for Employees
Disciplined
Retirement
planning
Access to disciplined retirement
planning through payroll
deductions
Regular savings (percentage of
salary)Institutional
investment funds
Gain access to institutional
investment platform
Minimize
leakage
The Corporate Savings Plan
provides a cost effective way for
employees to access retirement
planning0%
external
Investment
Fund
Placement Fee
Benefit from 0% external
investment fund placement fee. No
entry or exit fees charged on
underlying investment funds (no
bid-offer spread)
Segregated
Assets
Asset held by an off-shore trust or
reputed custodian
Corporate Savings Plan –
Risks in Corporate Savings Plans
Employees decide the investment
strategy for their contributions
Employee
contributio
n plan
As this is a defined contribution plan,
employees can decide whether they
wish to make contributions.
Employee
selects
investme
nt
strategy
Each individual employee selects the
investment strategy for their voluntary
contributions.
Investme
nt values
fluctuate
Investments fluctuate in value. Each
investment strategy has a different risk
/ return profile. There is no investment
return guarantee on invested
contributions and the actual return will
depend on the future performance of
the employee’s investment strategy.
Employee
s bear
risk /
reward of
their
strategy
As this is a defined contribution plan,
employees can decide whether they
wish to make contributions.
Effective employee communication strategy is required
to mitigate the above-mentioned risks 12
13. Corporate Savings Plan –
Digital Applications
Hassle-free - Enrolment &
Administration
Efficient Enrolment
Efficient Plan
Administration
Automated
calculation of Benefit
payments
Contribution &
Investment record
keeping
Customer-
centric
business
model
What does it mean to be digital?
Digitization is not just about enrolment &
administration through electronic
channels; it has the potential to transform
operational processes, reducing HR time
& cost associated with running an
employee savings plan
Hassle-free set-
up
Streamlined
digital system for
enrolment and
administration
Separate tracking
of each of the 3
contribution
streams
Funds ear-
marked by
member
employees
Transparent fee
structures and full
disclosure
Continuous
support
13
14. The Way Forward –
Reforms Needed to Encourage Private Corporate Savings Schemes
In addition to the employees’ retirement goals, private corporate savings schemes would help
achieve the economic and financial goals of the region by contributing to the development of
the region’s capital markets and improving the efficiency of labor markets
The current social security schemes are unsustainable and reforms would be needed to
encourage private corporate savings schemes
Proliferation of Corporate Savings Plans in GCC will enhance employee well being, talent
retention and augment employee productivity
14
15. Retirement is a journey not a
destination
Abraham Lincoln
Words of the wise – worth
remembering
15
16. Thank You
Sohail Jaffer
Managing Director
Business Development Insurance Services
Capita Middle East
DIFC, PO Box 49983,
Dubai, UAE
Mobile: +97150 429 6876
Email: sohail.jaffer@capita.co.uk
The information in this presentation does not constitute a sales offer, investment advice or an offer for the acquisition of financial products,
and shall not in this regard imply obligations for the entity or anybody else towards the readers of the presentation.
This presentation is solely intended to provide information on matters of interest for the readers and as such information is not meant to
replace the knowledge and the judgment of the readers who should make all appropriate inquiries.