Description: Many retirement actuaries have experience developing, implementing, and monitoring Liability Driven Investing (LDI) strategies for plan sponsors. These strategies typically involve modifying a plan’s investment strategy to remove a significant portion of the investment and interest rate risk now or at some point in the future when specific triggers are met. The tactics often involve the use of fixed income assets to cash flow and/or duration match the liabilities. In the spirit of helping actuaries expand their roles in an evolving defined contribution world, this article explores the application of LDI and derisking strategies within defined contribution and individual retirement accounts. The economic theory behind this approach is called the lifecycle hypothesis, or lifecycle finance. The benefits of the lifecycle finance method are that it provides a safe approach to save for retirement and a secure source of floor income during retirement. Similar to pension plans, each individual has his or her own idiosyncratic needs, wants, and risks that should be considered. Actuaries are uniquely situated to help defined contribution plan sponsors, individuals, and even themselves implement the lifecycle finance approach by developing and distributing tools and methods that focus on income (rather than wealth), LDI strategies, and personalization.

Description: Why retirement income replacement ratios are still relevant, even in light of newer retirement planning concepts.

Description: Letter from editor discussing various topics covered in the issue.

Description: Feature article providing an update on the Committee on Post-Retirement Needs and Risks as of March 2019, including information on the Aging and Retirement Strategic Research Program.

Description: Read the March 2018 issue of Reinsurance News published by the Reinsurance Section. Newsletter provide practical information for the working actuary.

Description: Hear from the staff fellow on themes in the October Retirement Section News published by the Retirement Section.

Description: In this mortgage crisis, it appears mortgage brokers and mortgage originating bankers were similar to unchecked MGAs. These brokers and banks had an incentive to produce mortgages that would generate fees for them. Those mortgagees would then be sold to investors, generating additional fees – but it appears there were often no incentives to align the interests of those mortgage producers with the purchasers of these mortgages. The brokers and banks “did not have any skin in the game.”

Description: Feature article describing the next steps people should take after they are finished working full time.

Description: Discussion of FinTech including PIMCO research on 401(k) use of managed accounts and observations about cybersecurity, genetic data, and retirement spend down.

Description: An overview of the state old age pension systems in four European countries that is intended to provide additional international context for a discussion of possible design and financing reforms for US social security.