Retirement insights from a Colorado PERA perspective

News You Should Know

Retirement Roundup: DB Plans Earn Higher Returns than DC Plans

best way to save

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

Defined benefit plans earn higher returns than defined contribution plans | MarketWatch

A new study compares the returns from private sector Defined benefit and defined contribution plans over the period 1990-2012. During that period, Defined benefit plans outperformed defined contribution plans by about 0.7 percentage point, with the difference generally larger after 2002. Investment fees, which typically account for 80-90 percent of total expenses, are the most likely explanation.

Catch-up contributions put retirees way ahead | Time-Money

Catch-up contributions to retirement accounts allow workers 50 and older to add extra savings to their retirement accounts. Aimed at helping individuals save enough for retirement, these extra contributions could amount to an additional $1,000 per month once a worker enters retirement. However, most employees do not come close to the regular limit, let alone put in extra.

Measure to curb California public pensions is pulled – for now | The Sacramento Bee

Two former California officials are backing off plans to place a measure on their state’s November ballot intended to curb public pension benefits. Supporters of the ballot measure said they will re-file at least one pension reform measure later this year for a ballot two years down the road. Citing economics, politics and a pending U.S. Supreme Court decision, former San Jose Mayor Chuck Reed said a pension measure would be more likely to pass in two years in November 2018.

Consumer prices in U.S. fall, led by slump in commodities | Bloomberg

The cost of living in the U.S. dropped in December, led by a slump in commodities that’s impacting global markets. The consumer-price index declined 0.1 percent after being little changed in November. For all of 2015, consumer prices climbed 0.7 percent after rising 0.8 percent in 2014. It was the smallest advance since 2008.

Initiatives for private sector retirement moving to states | Pensions & Investments

In November, the Department of Labor proposed a rule that would allow states to set up mandated payroll deduction individual retirement account programs for private-sector employees. But some states are already discussing their own approaches. Washington, California, and Illinois each provide different models. 18 state legislatures discussed proposals to study retirement savings plans in 2015, and hearings or task forces are expected this year in as many as 30 states.

2016’s best and worst states to retire | WalletHub

In addition to when you want to retire, you might want to ask yourself where. Even in the most affordable areas of the U.S., retirees often cannot rely on their Social Security or pension checks alone to cover all of their living expenses. WalletHub’s analysts compared the 50 states and the District of Columbia across 24 key metrics to help identify permanent, affordable places to live after leaving the workforce.

Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.Defined benefitAlso known as a pension, this is a type of pooled retirement plan in which the plan promises to pay a lifetime benefit to the employee at retirement. The plan manages investments on behalf of members, and the retirement benefit is based on factors such as age at retirement, years of employment and salary history.Defined contributionA type of individual retirement plan in which an employee saves a portion of each paycheck (along with a potential employer match) and invests that money. The employee’s retirement benefit is based on their account balance at retirement. A 401(k) is a type of defined contribution plan.

Comments are closed.

  • Share

  • Print