Retirement insights from a Colorado PERA perspective

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Public pensions are in better shape than you think

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Retirement Roundup: A digest of timely information and insight about finance, investing, and retirement.

Public pensions are in better shape than you think | The Week

A new paper from Tom Sgouros at UC Berkeley’s Haas Institute makes a compelling argument that the crisis in public pensions is to a large degree the result of accounting practices. Sgouros argues that the typical debate around public pensions revolves around accounting rules, which were designed for the private sector – and their specific mechanics both overstate some dangers faced by public pensions and understate others.

Baby Boomers adjusted retirement expectations post recession | PlanSponsor

A decade after the recession of 2007, more than half of Baby Boomers feel they have not benefitted from any recovery, according to a new survey by the Center for a Secure Retirement (CSR), “10 Years After the Crisis: Middle-Income Boomers Rebounding But Not Recovered.” Throughout the decade, many Boomers have readjusted retirement expectations to meet this situation.

Workers are working longer – and better | The New York Times

According to the Pew Research Center, in the year 2000, just under 13 percent of Americans 65 and over reported being employed full or part time. By May 2016, that figure had jumped to 18.8 percent – meaning that nearly nine million Americans 65-plus were gainfully employed. Over the next five years, that number is expected to increase to 32 percent. Of course, working past traditional retirement age is neither desirable nor feasible for some.

23 years of personal finance wisdom distilled into one final column | St. Louis Post-Dispatch

After writing a column since 1994, there are a few things about how people and money mix that a personal finance writer can leave with you, including: Don’t read this column.

College loans are making it harder for parents to retire | MarketWatch

It’s no secret that student debt can challenge millennials looking to start careers and launch into young adulthood. Increasingly, however, college loans are also making it harder for their parents to wind down their working lives. The dollar volume of Parent Plus loans – the loan the government offers parents – has doubled in the past decade, according to an analysis of federal student loan data by Mark Kantrowitz, publisher of college scholarship and search site Cappex.com.

Retirees should look carefully before leaping into a relocation | CNBC

Many people dream of fleeing to cheaper and warmer climates in their retirement. (Margaritaville, anyone?) Advisors caution, however, to watch for unexpected financial and non-financial consequences.

Comments

  1. Herbert Clevenger says:

    When PERA would hold meetings at Cow Palace in Lamar the PERA representative always informed us that PERA didn’t have to be 100%funded to take care of paying it’s obligations. Maybe PERA needs to think about the article that that they posted from Tom Sgouros at UC Berkeley’s Haas Institute. They didn’t take that into consideration when they supported Senate Bill 1. Maybe they need to give thought to this before members attempt to make more cuts to retirees.

  2. Barry Northrop says:

    I will judge the veracity of Tom Sgouros’ Paper based upon actions that COPERA may take as a result of its Actuarial Impact Analysis. A previous commenter brought up Senate Bill 1 which, since it became law, has witnessed the pension funded status decline. A bewildering outcome seeing as how, apparently, we were in tip top shape all along. Hmm, let’s see…where did I put my “Hogwash” file folder for follow-up?

    • Herbert Clevenger says:

      Over many years the facts show that Colorado PERA has rarely been 100% funded and yet meant their obligation of paying retirees their pensions. Realistically it will be rarely 100% funded. May we be reminded at how generous those in the State Legislative branch gave employees matching 401K dollars and the opportunity to buy years of service at a reduced amount when at or near 100% funding. It seemed nice at the time I’m sure for many that took the bait and made retirement decisions based on thin air to find out after retirement that it was a hoax. Many used their 401K dollars and matching funds to buy time when the market was in decline and buying time was still cheap. Maybe some wish now that they would have worked more years instead of taking the leap. It hurts though when you are counting on those you entrust with your retirement and base your decisions accordingly to have the rug yanked out from under you. I hope that they that look out for our retirement will use reason and look at what level of funding is realistic. We better hope that inflation remains low and that the stock market does well because look out if inflation gets out of control. Nothing ever changes with the Windfall Elimination Provision that cuts what small social security benefit available by half. With jobs becoming plentiful again than maybe we have some hope that we can find gainful employment. Happy looking!

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