Retirement Income Programs: The Next Step in the Transition from DB to DC Retirement Plans

2017 ◽  
Vol 4 (3) ◽  
pp. 11-27 ◽  
Author(s):  
Wade D. Pfau ◽  
Joseph A. Tomlinson ◽  
Steve Vernon
Keyword(s):  
Retirement Income ◽  
Retirement Plans

scholarly journals Long-Term Sustainable Investment for Retirement

2021 ◽  
Vol 13 (9) ◽  
pp. 5000
Author(s):  
Iqbal Owadally ◽  
Jean-René Mwizere ◽  
Neema Kalidas ◽  
Kalyanie Murugesu ◽  
Muhammad Kashif
Keyword(s):  
Mutual Funds ◽  
Performance Metrics ◽  
Retirement Income ◽  
Retirement Plans ◽  
Full Account ◽  
Investment Performance ◽  
Management Fees ◽  
Sustainable Investment ◽  
Managed Funds

We consider whether sustainable investment can deliver performance comparable to conventional investment in investors’ long-term retirement plans. On the capital markets, sustainable investment can be achieved through various instruments and strategies, one of them being investment in mutual funds that subscribe to ESG (environmental, social, and governance) principles. First, we compare the investment performance of ESG funds with matched conventional funds over the period 1994–2020, in Europe and the U.S. We find no significant evidence of differing performance (at 5% level) despite using a number of investment performance metrics. Second, we perform a historical backtest to model a UK personal retirement plan from 2000 till 2020, taking full account of investment management fees and transaction costs. We find that investing in an index-tracker fund overlaid with ESG screening delivers a pension which is 10.4% larger than is achieved if the index-tracker fund is used without screening. This is also 20.2% larger than is achieved by investing in a collection of actively managed funds with a sustainable purpose. We conclude that an ESG-screened long-term passive investment approach for retirement plans is likely to be successful in satisfying the twin objectives of a secure retirement income and of sustainability.

Required Minimum Distributions

2020 ◽  
Vol 52 (4) ◽  
pp. 127-137
Author(s):  
John G. Kilgour
Keyword(s):  
Life Expectancy ◽  
Internal Revenue Service ◽  
Retirement Income ◽  
Defined Contribution ◽  
Next Generation ◽  
Retirement Plans ◽  
Internal Revenue ◽  
Individual Requirement

Required minimum distributions (RMDs) are an important part of individual requirement accounts and defined-contribution retirement plans including 401(k), 403(b) and 457(b) plans. Such plans are intended to provide retirement income for the account owner and his or her spouse. They are not intended to pass untaxed wealth on to the next generation. RMDs do that by requiring that a portion of the balance in an account is distributed (and taxed) each year beginning by age 70½ (recently extended to age 72). This article examines the origins and extensions of RMDs, how they are calculated and how they work. It then assesses the recently enacted SECURE Act and the proposed updated Internal Revenue Service tables of the life-expectancy factors used to calculate the amount of the annual RMDs.

scholarly journals An Empirical Analysis of Dairy Farm Reinvestment Versus Tax-Deferred Plans for Retirement Income

1984 ◽  
Vol 13 (1) ◽  
pp. 1-6 ◽  
Author(s):  
Loren W. Tauer
Keyword(s):  
Mutual Funds ◽  
Empirical Analysis ◽  
Dairy Farm ◽  
Common Stock ◽  
Retirement Income ◽  
Retirement Plans ◽  
Rates Of Return ◽  
Farm Business

This study empirically compares the retirement values of dairy farm investments to tax-deferred retirement investments that are funded with bank certificates of deposit or common stock. For a successful dairy farm, the results indicate that tax-deferred retirement plans that generate rates of return similar to certificates of deposit or common stock mutual funds are probably not as good an investment as reinvesting farm earnings back into the farm business.

scholarly journals The Role and Importance of Individual Retirement Accounts

2020 ◽  
Vol 52 (1) ◽  
pp. 19-26
Author(s):  
John G. Kilgour
Keyword(s):  
Retirement Income ◽  
Retirement Plans ◽  
Income Security ◽  
Individual Retirement Accounts ◽  
Retirement System ◽  
Retirement Accounts ◽  
Different Types ◽  
Retirement Income Security ◽  
The U.S

What are now called “traditional IRAs” (Individual Retirement Accounts) were created by the Employee Retirement Income Security Act of 1974. Roth IRAs were added in 1997. Employer-sponsored Simplified Employee Pensions–IRAs were added in 1978 and Savings Investment Match Plans for Employees–IRAs (and 401(k)s) in 1996. Together IRAs hold $8.8 trillion in assets, one third of the total $27.1 trillion in all retirement plans. This article examines the role and importance of IRAs in the U.S. retirement system and the development of the different types of IRAs and their interaction with each other.

scholarly journals How do older workers use nontraditional jobs?

2020 ◽  
pp. 1-19
Author(s):  
Alicia Munnell ◽  
Geoffrey T. Sanzenbacher ◽  
Abigail N. Walters
Keyword(s):  
Health Insurance ◽  
Sequence Analysis ◽  
Older Workers ◽  
Health And Retirement Study ◽  
Retirement Income ◽  
Retirement Plans ◽  
Retirement Security ◽  
Retirement Study

Abstract Working consistently through one's early 60s is key to retirement security. However, workers without access to retirement plans and health insurance will likely struggle to achieve such security. This paper uses the Health and Retirement Study to identify nontraditional jobs – which lack these benefits – and applies sequence analysis to explore how workers aged 50–62 use them. The results suggest that most nontraditional jobs are used by workers consistently, and that fewer workers use these jobs briefly or as a bridge to retirement. Workers consistently in nontraditional jobs end up with less retirement income and are more likely to be depressed.

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