Description: The standard for measuring retirement income adequacy has been the final earnings replacement rate (usually targeted at 70%). But - does it work?

Description: This essay explores the role that the emerging defined contribution retirement system may be playing in the growth of wealth inequality in the United States. The current system leaves many Americans with little or no retirement savings. Those with higher accumulation levels appear to invest proportionally more in equities, which may have an exponential effect of balances over long time periods. The author hypothesizes that willingness to take investment risk involves the relationship between the amount an investor has accumulated and what she/he needs in order to cover basic costs of living. This is one reason that investors with greater accumulation levels may be able to earn higher rates of return. The essay concludes by suggesting that the U.S. defined contribution system should include all workers and provide additional fiduciary guidance. Examples reforms, both in the U.S. and other countries, are provided.

Description: The article reviews recent investment performance of stable value compared to other low risk alternatives, discusses current criticisms of the option, and concludes that they are not well founded. Criticism reflects a lack of openness to the full range of stable value contracts available and manager bias against traditional GICs, not a real lack of wrap capacity. Stable value continues to be the pareto superior low risk option.

Description: This paper investigates the one-asset portfolios, mixed-asset portfolios, and a dynamic investment portfolio which allows a switch from an aggressive portfolio to a conservative one at middle ages.

Description: This article advocates that DC plan sponsors implement programs of retirement income in their plans, and that actuaries are ideally qualified to help plan sponsors with that task. A program of retirement income offers a menu of choices to convert savings to income, along with appropriate communications to help retiring employees make informed choices.

Description: Discusses key issues to improve the retirement system in the U.S. in a primarily defined contribution environment. Focuses on age at retirement, how people retire, and covering risks including disability and longevity risk. Some ideas are feasible within current environment and some require policy change.

Description: Book review of Steve Vernon’s Money for Life, Turn your IRA and 401(k) into a Lifetime Retirement Paycheck

Description: Highlights of recent media contributions by actuaries.

Description: This is a summary of the employer costs for pension plans published by the U.S. Department of Labor’s Bureau of Labor Statistics (BLS) as of December 2013.

Description: Discussion about the pros and cons of providing lifetime income options in defined contribution plans, and about the pros and cons of annuitization vs. structured payouts. Discussion triggered by an SOA research report authored by Steve Vernon.