Pensions research bulletin

The bulletin comprises three sections:

• Published research
• Recent research and research in progress
• Research news

These publications have been published since October 2009.
Where the publications below are not available for download, they are available for loan from the Profession's libraries, or photocopies can be supplied at 20p per A4 sheet (fax: 50p per sheet). Photocopy orders sent to addresses outside the UK incur a £5.00 charge towards postage. Please email the libraries for more information.
You can search the library catalogue for more publications of your interest.

ApRoberts, Lucy
Trends in the Retirement System of the United States. - Palgrave Macmillan, - 13 pages. [RKN: 71675] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 618-630.
Abstract: Since the 1950s, poverty among older Americans has become quite rare compared to the rest of the population. The retirement system has two main components: the social insurance system called Social Security provides the population age 65 or over with 39 per cent of their total income; occupational pension plans provide another 19 per cent of the older population's total income. Since 2000, Social Security pension levels have dropped for new retirees if they begin to get a pension before age 66. Coverage by occupational pension plans is on the wane. In future, these developments could lead to an income shortfall for those older Americans who do not save more or postpone retirement. The financial crisis has undermined confidence in savings as a reliable source of income. In recent years, there has been a slight increase in the labour force participation of the older population, including those over 65. Nonetheless, many Americans retire at 62, as soon as they can begin to draw a Social Security pension. If current policy concerning Social Security does not change, poverty could become more common than it is today among older Americans. Keywords: United States, retirement system, pensions, retiree incomes
Keywords: United States; Retirement; Trends; Poverty; Pensions; Retired people
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Bee, Steve
No quick fix: Soapbox. - Staple Inn Actuarial Society, - 1 pages. [RKN: 71642] . - The Actuary (2009) November: 10.
Abstract: Steve Bee says it is time for a wider debate on the state pension. He suggests that while the age of entitlement could be raised to 75 or 80, the value should be increased greatly.
Keywords: Pensions
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Bonin, Holger
15 Years of Pension Reform in Germany: Old Successes and New Threats. - Palgrave Macmillan, - 13 pages. [RKN: 71670] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 548-560.
Abstract: The article surveys the state of the German pension system after a sequence of reforms aimed at achieving long-term sustainability. We argue that the latest reforms have moved pension provision in Germany in principle from a defined benefit to a defined contribution scheme, and that this move has stabilised pension finances to a large extent. We furthermore argue that the real economy consequences of the global financial crisis create threats to the core success factors of the reforms – cutting pension levels and raising mandatory pension age. Finally the article discusses further possible reform measures, including the option to install a fourth pillar, providing income in retirement through working after pension age. Keywords: pension financing, financial crisis, fiscal sustainability survey, Germany
Keywords: Pension reform; Defined contribution schemes; Germany; Financial crises; Pension reform
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Bütler, Monika
Switzerland: High Replacement Rates and Generous Subsistence as a Barrier to Work in Old Age. - Palgrave Macmillan, - 17 pages. [RKN: 71671] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 561-577.
Abstract: During the last decade the traditionally high participation rate of elderly workers in Switzerland has remained constant for men and has increased substantially for women. Low social security implicit tax rates epitomize positive work incentives for mid- and high- income individuals, while at the same time generous means-tested social assistance make working longer than the earliest retirement age unattractive for low-income earners. A more subtle reason to retire early is the pure income effect brought about by high retirement benefits for all income groups. These high benefits together with demographic ageing are also the main reason for the unfavourable financial prospects for both the PAYG first pillar and funded occupational pension plans. Interestingly, the financial crisis has not only reduced the value of assets in the funded components of the scheme, but also uncovered structural deficiencies of the second pillar with respect to the funding ratio, regulation and supervision. Keywords: occupational pensions, retirement behaviour, political constraints
Keywords: Switzerland; Retirement; Financial crises; Older workers; Occupational pensions
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Casey, Bernard H
Policy learning and social protection: What have we learnt? - Blackwell Publishing Ltd, - 4 pages. [RKN: 71698] . - International Social Security Review (2009) 62 (4): 103-106.
Keywords: Social service economics; Social security benefits; Learning; Pensions
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Casey, Bernard H; McKinnon, Roddy
Social pensions and policy learning: The case of southern Africa. - Blackwell Publishing Ltd, - 22 pages. [RKN: 71697] . - International Social Security Review (2009) 62 (4): 81-102.
Abstract: In the last decade and particularly since the publication of the Millennium Development Goals, social pensions have captured the interest of those concerned with the well-being of older people across that large part of the world where formal, contributions- financed, old-age benefit systems cover only a minority of the population. International organizations have turned their attention to such schemes and some see them as having a valuable role to play. However, information about what they are and how they work, and about their efficacy in meeting the objectives set for them, is still limited. Learning has been taking place not only in the international organizations but also in the region where they are most prominent – southern Africa. Such learning should be encouraged and the International Social Security Association has a part to play in this learning process. Keywords: social security reform, social security financing, social security administration, poverty, developing countries, southern Africa
Keywords: Africa; Social security benefits; Developing economies
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Chen, Kai; Hardy, Mary R
The DB underpin hybrid pension plan: Fair valuation and funding. - Society of Actuaries, - 18 pages. [RKN: 72020] . - North American Actuarial Journal (2009) 13 (4): 407-424.
Abstract: In this paper the defined benefit underpin guarantee is valued as a financial option, within the traditional funding paradigms of actuarial science. Assuming fixed interest rates, and assuming that salaries can be treated as a tradable asset, we value the guarantee using fair value principles. Contribution rates are developed for the Entry Age Normal, Projected Unit Credit, and Traditional Unit Credit funding methods. In addition, for the accruals methods, we demonstrate the implied hedging strategy. The traditional unit credit offers the best method of these three, as it is consistent with the principles of financial economics, and the resulting contributions more naturally follow the cost of the emerging benefit, without creating expensive barriers to new hires. The method generates significant contribution volatility, and we demonstrate how this can be reduced with suitable benefit design and ongoing risk management
Keywords: Defined benefit schemes; Pension reform; Valuation; Risk management
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Coda Moscarola, Flavia; Fornero, Elsa
How to Strengthen the Credibility of the Italian Pension Reform. - Palgrave Macmillan, - 11 pages. [RKN: 71673] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 591-601.
Abstract: As a result of the reform process undertaken in the 1990s, the Italian pension system has replaced a generous but unsustainable Defined Benefit formula with a Notional Defined Contribution (NDC) formula and opened the path for voluntary-based second and third pillars. While the reform has put the system on a sustainable path, its most relevant side effects consist in the transfer of the pension risk to the individuals, who are then more exposed to the consequences of unfavourable economic cycles and to financial crises. The extremely slow phasing in of the reform, however, undermines its credibility and raises risks of it backfiring. We propose three measures to avoid this: (1) acceleration of the full adoption of the NDC formula, to achieve uniformity of treatment of genders, cohorts, and working categories, (2) elimination of incentives to early retirement and introduction of flexible retirement, and (3) promotion of financial literacy. Keywords: ageing, pension reforms, elderly work, retirement choices
Keywords: Pensions; Italy; Defined contribution schemes; Public sector schemes; Pension reform; Older workers
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Dimitriou, Eugene
On the wrong track? - Staple Inn Actuarial Society, - 2 pages. [RKN: 71647] . - The Actuary (2009) November: 34-35.
Abstract: Amid the current vogue for longevity swap transactions, Eugene Dimitriou asks whether the protagonists have fully considered the consequences involved.
Keywords: Swaps; Risk; Hedging; Pensions
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Gonand, Frédéric; Legros, Florence
Pension Reforms In France: Impact On Growth And Inter-Generational Redistributive Effects. - Palgrave Macmillan, - 21 pages. [RKN: 71677] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 639-659.
Abstract: This paper assesses the impact on growth and the inter-generational redistributive effects of some possible pension reforms in France using a dynamic general equilibrium model with overlapping generations. Results suggest that a reform increasing the effective average retirement age by 1.25 years per decade and diminishing the average replacement rate by around 6 percentage points up to 2020 could stabilise social contributions for the youngest, but would gradually foster the poverty rate among pensioners. On the other hand, a reform incorporating a rise in the age of retirement by 1.25 years per decade, unchanged replacement rates and a discretionary increase of all pensions of 2.5 per cent in 2008 would limit the poverty rate among pensioners, but it would weigh down on the growth rate and the welfare of future generations. Keywords: pensions, intergenerational fairness, age of retirement
Keywords: Retirement age; Modelling; France; Pensions; Pension reform
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Lindquist, Gabriella Sjögren; Wadensjö, Eskil
Retirement, Pensions and Work in Sweden. - Palgrave Macmillan, - 13 pages. [RKN: 71672] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 578-590.
Abstract: Most countries including Sweden have an ageing population. The costs of the welfare state increase with the old age share, leading to problems for public finances. If the number of hours worked increases, tax revenues increase and less income transfers are paid out. A higher retirement age is one way to increase the numbers of hours worked in the economy. The age when people leave the labour market has already increased in Sweden. The new pensions system is part of the explanation but improved health and changes in the educational level of the cohorts close to retirement are also important. The problem of financing the welfare state is however not solved by that development. We conclude our article by discussing changes in laws and collective agreements which may contribute to further increases in the actual retirement age. We also shortly discuss the implications of the present economic crisis. Keywords: ageing population, older workers, pension, pension reforms, financial crisis
Keywords: Sweden; Older workers; Retirement age; Pensions
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Mesa-Lago, Carmelo
Re-reform of Latin American Private Pensions Systems: Argentinian and Chilean Models and Lessons. - Palgrave Macmillan, - 16 pages. [RKN: 71674] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 602-617.
Abstract: Between 1981 and 2008, 11 countries in Latin America structurally reformed their defined-benefit, Pay-As-You-Go, public pension systems, partially or totally replacing them with defined contribution, fully funded, privately managed schemes based on individual accounts. Initial failures in design and subsequent performance of the private systems led to partial corrections, but in 2008 two countries implemented far reaching "re-reforms": Chile maintained and improved its system, whereas Argentina closed and integrated it to the public system. Both re- reform models are evaluated based on their fulfilment of International Labour Organization social security principles: universal coverage, equal treatment, social solidarity, gender equality, benefit sufficiency, public supervision, reasonable administrative costs, social participation and financial sustainability. The Chilean model has improved the system in most of such principles while the Argentinian model has not. The potential influence of both models in the region is briefly explored. Keywords: private pensions, re-reforms, social security principles
Keywords: Defined contribution schemes; Argentina; Chile; Reform; Pensions; Public sector schemes
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Shao, Ai Ju
The public pension system in Taiwan: Equity issues within and between systems. - Blackwell Publishing Ltd, - 16 pages. [RKN: 72051] . - International Social Security Review (2010) 63 (1): 21-36.
Abstract: This article analyses the challenges facing the New Public Service Pension Fund System in Taiwan, China. After less than two decades of operation, this young system is facing financial imbalance and is embroiled in controversy regarding the generosity of its benefits provisions. The article first introduces Taiwan's different systems for old-age security, with a focus on that for general public-sector employees. It then addresses the financial challenges facing the general public-sector pension system, including the rising cost of its benefits for all taxpayers. Finally, a number of possible reform directions are suggested, including lowering benefit levels, making qualifying criteria more stringent, or establishing a new system. With regards to the latter, any proposed new system must seek to satisfy the goal of longer-term financial soundness while realizing optimal fairness among all stakeholders including taxpayers. Keywords: pension scheme, public expenditure, actuarial valuation, earnings replacement rate, Taiwan, China
Keywords: Public sector schemes; Taiwan; Social insurance; Occupational pensions
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Takayama, Noriyuki
On Fifty Million Floating Pension Records in Japan. - Palgrave Macmillan, - 8 pages. [RKN: 71676] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 631-638.
Abstract: There arose a serious pension record-keeping problem in Japan in May 2007. Around 50 million records of social security pension records were found to be floating, not having been integrated into the unified pension numbers. The pending records are due to human errors made by enrolees, their employers and agencies. There has been no integrated collection of taxes and social security contributions in Japan, and additionally no monitoring organisations were effectively implemented in pension administration. The general public was under the illusion that government officials were able to do and did everything correctly without making any mistakes. However, human errors are inevitable anywhere. Regular and prompt examinations over possible errors are required for proper record-keeping of pensions. When a no-match is identified, an interactive notification and responding correction with confirmation should follow in due course. A trustworthy government with its competent and neat implementation is, thus, the basis for any pension system. Keywords: pension implementation, floating records, error correction
Keywords: Public records; Public sector schemes; Pensions; Records management; Japan
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Tansley, Gary
Size isn't everything. - Staple Inn Actuarial Society, - 1 pages. [RKN: 71649] . - The Actuary (2009) November: 36.
Abstract: Gary Tansley explains how today's electronic pensions information services have helped smaller consultancies compete with their larger counterparts
Keywords: Small businesses; Actuarial management; Pension consultants
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Taylor, Mike
Let's take the shackles off. - Staple Inn Actuarial Society, - 1 pages. [RKN: 72076] . - The Actuary (2010) Jan / Feb: 10.
Abstract: Mike Taylor looks at how the Local Government Pension Scheme (LGPS) should operate
Keywords: Occupational pensions; Public sector schemes; Local government
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Whitehouse, Edward
Pensions During the Crisis: Impact on Retirement Income Systems and Policy Responses. - Palgrave Macmillan, - 12 pages. [RKN: 71669] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 536-547.
Abstract: The financial and economic crisis has had a profound impact on economies and societies, and pension systems are no exception. This paper illustrates the impact of the financial crisis on private pension schemes and of the wider economic crisis on both private and public retirement income provisions. The analysis shows that no pension scheme and no country is immune from the effects of the crisis. Policy responses to the crisis are explored: both short-term mitigation and addressing long-term, structural problems that have been highlighted and exacerbated by current financial and economic difficulties. Keywords: pensions, reforms, crisis, policy response, retirement
Keywords: Pensions; Financial crises; Policy
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Whitehouse, Edward; D'Addio, Anna; Chomik, Rafal; Reilly, Andrew
Two decades of pension reform: What has been achieved and what remains to be done? - Palgrave Macmillan, - 21 pages. [RKN: 71668] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 515-535.
Abstract: The past two decades have seen a wave of reforms to retirement income systems around the world. This paper describes the reform packages that have taken place in 38 industrialised economies, some of them involving incremental changes to existing provision, others, an overhaul of the entire retirement income system. The changes had many objectives. First, improved coverage of the pension system, especially of voluntary private pensions, was a common goal. Second, some reforms aimed to improve the adequacy of retirement benefits to combat old age poverty. Third, the pressure of population ageing and the maturing of pension schemes meant that fiscal sustainability of public pensions – primarily through reductions in future benefits – were very common. Often, the improvement to long-term finances will be achieved through encouraging people to work longer, through increases in pension eligibility ages and adjustments to pension incentives to retire. Finally, some reforms aimed at streamlining the administration of retirement income provisions and to improve the security of benefits in the face of different risks and uncertainties. Keywords: pensions, retirement, reforms
Keywords: Public sector schemes; Pension reform; Pensions; Retirement; Pension schemes
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Yang, Sharon S; Huang, Hong-Chih
The impact of longevity risk on the optimal contribution rate and asset allocation for defined contribution pension plans. - Palgrave Macmillan, - 22 pages. [RKN: 71678] . - Geneva Papers on Risk and Insurance (2009) 34 (4): 660-681.
Abstract: This research studies the interaction between longevity risk and asset allocation for a defined contribution pension plan. We investigate the investment strategy during the accumulation phase to deal with longevity risk during the decumulation phase. The longevity risk is demonstrated using the U.K. mortality experience for pensioners. We experiment with three patterns of mortality: base, projection and stochastic mortality rates. The optimal asset allocation and contribution rate are determined by minimizing the variance of the error between the value of pension fund and required pension fund plus the square of the expected value of the error. The required pension fund is decided by the pension fund target, measured using the income replacement ratio. We consider four assets in the asset allocation and observe four types of changes to the rebalancing investment strategies. The results show a life cycle investment strategy and indicate that longevity risk can be hedged by either raising the contribution rate or setting a more aggressive asset allocation. Keywords: longevity risk, asset allocation, income replacement ratio
Keywords: Risk; Contribution rate; Pensions; Defined contribution schemes; Asset allocation
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Recent research and research in progress

Click on the links for further details of research completed and in progress at these institutions:

UK

Cambridge University Judge Business School, ESRC Centre for Business Research 
http://www.cbr.cam.ac.uk/research/index.htm

Cass Business School - Actuarial Research Centre
http://bunhill.city.ac.uk/research/actprojects.nsf/allAreas?OpenView&RestrictToCategory=pensions
News

Cass Business School - Pensions Institute
http://www.pensions-institute.org/index.html
http://www.pensions-institute.org/reports.html
http://www.pensions-institute.org/papers.html

Heriot-Watt University: Actuarial Mathematics School of Mathematical and Computer Sciences
http://www.ma.hw.ac.uk/~andrewc/actuarial/#research

Manchester University:
Armando Barrientos
http://www.manchester.ac.uk/research/armando.barrientos/research
Professor Mara Faccio
http://www.manchester.ac.uk/research/mbs/Mara.faccio/publications

University of Nottingham Business School: Centre for Risk and Insurance Studies
http://www.nottingham.ac.uk/business/cris/Research.html
News

Oxford University: Oxford Institute of Ageing
http://www.ageing.ox.ac.uk/research
News

Centre for Employment, Work & Finance, Oxford
http://www.geog.ox.ac.uk/research/transformations/cewf/#research

Pensions Policy Institute
http://www.pensionspolicyinstitute.org.uk/news.asp?s=4
News

University of Westminster: Pensions Research Network
http://www.wmin.ac.uk/wbs/page-1193

Europe

University of Munster: European Network for Research on Supplementary Pensions (ENRSP)
http://www.jura.uni-muenster.de/go/organisation/institute/zivilrecht/aw3/profil/enrsp.html

University of Turin: Centre for research on pensions and welfare policies
http://cerp.unito.it/
http://cerp.unito.it/index.php?option=com_content&view=category&layout=blog&id=23&Itemid=2&lang=en
News

North America

Boston College: Centre for Retirement Research
http://crr.bc.edu/linked_in_content_pages/current_projects.html
News

Brookings Institution, Washington: Retirement Security Project
http://www.retirementsecurityproject.org/research

University of Chicago: Centre on Demography and Economics of Aging
http://www.spc.uchicago.edu/coa/research.php

Duke University: Population Research Institute
http://www.ssri.duke.edu/dupri.php

Harvard Law School: Labour and Worklife Programme
http://www.law.harvard.edu/programs/lwp/LWPpensions_publications.html

Michigan Retirement Research Centre, University of Michigan
http://www.mrrc.isr.umich.edu/research/projects/
News

University of Nebraska-Lincoln, Finance Department: Center for Insurance and Risk Management
http://www.cba.unl.edu/academics/finance/special/irms/index.aspx

Rotman International Centre for Pension Management, University of Toronto (ICPM)
http://www.rotman.utoronto.ca/icpm/details.aspx?ContentID=80
News 

University of Waterloo, Ontario Statistics & Actuarial Science: Institute of Insurance & Pensions Research
http://www.stats.uwaterloo.ca/stats_navigation/IIPR/IIPR.shtml

Wharton, University of Pennsylvania: Pensions Research Council
http://www.pensionresearchcouncil.org/research/

Yale School of Management
http://mba.yale.edu/faculty/working_papers.shtml
http://mba.yale.edu/faculty/publications/

International

Pensions-research.org
http://www.pensions-research.org/

Research news

Increasing longevity and the economic value of healthy aging and working longer
Professor Les Mayhew of the Faculty of Actuarial Science and Insurance, City University, was commissioned by the Cabinet Office Strategy Unit to produce a report on the impact of longevity and health trends on the UK economy. The report contains many useful insights into how an ageing population could affect growth and living standards. It highlights health and work of barriers to progress and suggests how they can be managed or overcome.

Earlier this month, Rotman ICPM collaborated with the Organization for Economic Co-operation and Development (OECD) and the International Organization of Pension Supervisors (IOPS) to create a Workshop on Pension Risk Management and its implications for pension regulation and supervision. Summary of the Workshop proceedings and conclusions.

Les Mayhew of Cass Business School has prepared a study Governmental strategy paper, which was published on Monday 13 July 2009. 

Chris O'Brien of the Centre for Risk and Insurance Studies (CRIS) has prepared three research reports related to the reattribution of certain Aviva with-profits funds.

The World Bank has commissioned CeRP to do a study on benchmark portfolios for pension funds.
The research is part of a joint WB-OECD project, which aims at undertaking a comparative analysis of investment performance of privately managed pension funds across several OECD, Latin American and Central and Eastern European countries.

Michigan Retirement Research Centre Conference
On March 20, the MRRC co-hosted the conference Financial Literacy in Times of Turmoil and Retirement Insecurity.

Retirement income and assets: do pensioners have sufficient income to meet their needs?
This report from PPI investigates the roles of different types of income and assets in helping pensioners to meet their needs for income in retirement. The report identifies the main factors that determine pensioners’ needs for income and considers whether pensioners are likely to have sufficient income to meet their needs and expectations throughout their retirement. The research project has been co-funded by the Department for Work and Pensions, the Association of British Insurers, the Investment Management Association and Age Concern and Help the Aged.

Researchers urge Government to issue longevity bonds
A team of experts are calling on the Government to issue longevity bonds. Given the size of the UK Government's borrowing requirement - £703bn over the next five years as announced in the recent Budget - and also the growing need for pension funds and annuity providers to hedge against people living longer, a team from the Pensions Institute at Cass Business School (Professor David Blake, Director of the Pensions Institute, Cass Business School; Tom Boardman Director of Retirement Strategy and Innovation, Prudential UK; Professor Andrew Cairns, Heriot Watt University; and Professor Kevin Dowd, Nottingham University Business School, are calling on the Government to issue longevity bonds.

Former Institute Fellow appointed as new Director of Age Concern Oxfordshire
Paul Cann, former Head of Policy and International Affairs at Help the Aged and OIA visiting Fellow from 2004- 2007, has been appointed as the new Director of Age Concern Oxfordshire

Investigation Into the Performance of UK Pension and Fund Managers
The UK's defined benefit pensions industry makes widespread use of pooled investment vehicles which are provided by a large number of fund management groups. In a working paper, titled ‘An Empirical Investigation into the Performance of UK Pension Fund Managers’, Cass asset management experts, Andrew Clare, Keith Cuthbertson and Dirk Nitzsche provide the first comprehensive performance analysis of these funds.
Using data on 734 pooled funds, which had a combined value of just over 400 billion pounds at the end of 2007, ranging from UK equity to funds specialising in Pacific Basin equities, the authors found almost no statistically significant evidence that the managers of these funds generate alpha, or can time the market. With increasing numbers of UK fund managers purporting to be able to provide high alpha products to the UK's beleaguered pensions industry, the team’s results do not give great confidence that the solution to the widespread deficits lies in the hands of the UK's active institutional investment managers.

PPI Retirement income and assets: do pensioners have sufficient income to meet their needs?
This is the first report in a series investigating the roles of different types of income and assets in helping pensioners to meet their needs for income in retirement. The report identifies the main factors that determine pensioners’ needs for income and considers whether pensioners are likely to have sufficient income to meet their needs and expectations throughout their retirement.

Rotman ICPM Annual Report
Rotman ICPM 2008/2009 publishes their Annual Report, which documents their achievements after the fourth full year of operation.
In short, the research funding is adding significantly to the global body of knowledge about pension management, the discussion forums are seen as transformational events that move ideas into action, and ICPM is gaining recognition as a global centre for innovation in pension management.  An exciting development for this year was the publication of the first issue of The Rotman International Journal for Pension Management. The second issue is slated for release mid-May and will again be available at no cost via the ICPM website.

ABI Research paper Retirement savings in the UK. State of the Nation’s Savings 2008
This report presents the results of the sixth annual State of the Nation’s Savings survey, conducted for the ABI by YouGov in September 2008. The survey’s results once again highlight the problem of inadequate saving in Britain. It is clear the ‘need to save’ message is not getting through. The research shows that just under a half of working people in employment are either saving too little or nothing at all into a pension. And the majority of these people are also not saving outside of a pension. These facts are worrying, not least because of Britain’s ageing population and increasing life expectancy. And as a recession looms it will be even harder to get the ‘need to save’ message across. 

US report on long term care costs and the National Retirement Risk Index
Even if households work to age 65 and annuitize all their financial assets, including the receipts from reverse mortgages on their homes, the National Retirement Risk Index (NRRI) has shown that 44 percent will be ‘at risk.’  ‘At risk’ means they will be unable to maintain their standard of living in retirement.  When health care costs were included explicitly, the percentage of households ‘at risk’ increased to 61 percent.  The previous analysis of health care costs, however, did not consider possible expenses for long-term care towards the end of life.  This brief by the Centre of Retirement Research at Boston College explores how the need for long-term care could affect the NRRI. <

Presentations from major US retirement conference
On March 20, the Michigan Retirement Research Center (MRRC) co-hosted the conference Financial Literacy in Times of Turmoil and Retirement Insecurity. The conference focused on how workers and retirees can better manage saving for retirement, and how they can stay secure during retirement. Participants identified research and policy directions for the future. View the conference agenda, memos, and Powerpoint presentations.