ONCE, retirement was straight forward. You built up a reasonable fund of money and bought an income for life through an annuity. It was guaranteed and you had a few choices to think of - a rising or flat income; guaranteed length of time after death; and spouse's or children's benefits were the key items to consider. Those days of guarantees have gone with the plummet in annuity rates. Annuity rates are currently 29 per cent below 2008 levels alone.Pensioners moved to protect their income by deferring taking an annuity and allowing their capital to be invested and grow a little longer before potentially buying an annuity at a later date. This plan benefits the pensioner as annuity rates increase with age.Many pensioners moved their pot of money to a product called income drawdown which allowed them to leave the capital invested, but take a smaller ‘income' which came from their remaining pot.You can also take 25 per cent of the pot of money as a tax free cash lump sum if you are … [Read more...] about How much can I withdraw from my pension?
Annuity starting date
Prime Minister Giuseppe Conte shakes hands after his speech. Photo: Andreas Solaro/AFP Prime Minister Giuseppe Conte made his maiden speech to parliament on Tuesday, the first time the new premier has spoken in public since he was sworn in last week. Here are the highlights. On leading a 'government of change' "I offer myself to you and – through you [parliament] – to the public, as the lawyer for the interests of the Italian people. [...] "The political forces that make up the majority of this government have been accused of being 'populist' and 'anti-system' [...] If 'populism' means the ruling classes listening to the needs of the people [and] if 'anti-system' means aiming to introduce an new system that does away with old privileges and encrusted power, then these political forces deserve both those terms. [...] "The people spoke and demanded change." "One of our objectives is to eliminate the growth gap between Italy and the European Union [...] In … [Read more...] about Here are the main things Italian PM Giuseppe Conte said in his first speech
Nathan Bomey and John Gallagher Detroit Free Press Published 5:43 p.m. UTC May 24, 2018 Originally published Sept. 15, 2013 Detroit is broke, but it didn’t have to be. An in-depth Free Press analysis of the city’s financial history back to the 1950s shows that its elected officials and others charged with managing its finances repeatedly failed — or refused — to make the tough economic and political decisions that might have saved the city from financial ruin. Instead, amid a huge exodus of residents, plummeting tax revenues and skyrocketing home abandonment, Detroit’s leaders engaged in a billion-dollar borrowing binge, created new taxes and failed to cut expenses when they needed to. Simultaneously, they gifted workers and retirees with generous bonuses. And under pressure from unions and, sometimes, arbitrators, they failed to cut health care benefits — saddling the city with staggering costs that today threaten the safety and quality of … [Read more...] about How Detroit went broke: The answers may surprise you — and don’t blame Coleman Young
LONDON (Reuters) – Marks and Spencer’s <MKS.L> pension scheme has passed 1.4 billion pounds of its liabilities to Aviva <AV.L> and Phoenix <PHNX.L>, the insurers said on Thursday, as companies look to reduce the risk from their pension funds. British companies such as Pearson and Smith Group are starting to transfer pensions calculated on workers’ final salaries to insurers, to take the pensions risk off their own balance sheets, a trend that is encouraging new insurers into the sector. The Marks and Spencer pension scheme has nearly 9 billion pounds in liabilities, according to its most recent triennial valuation. Specialist providers say they can run pensions and life policies at a lower cost by using economies of scale, investing more astutely and using actuarial expertise to match assets more closely to liabilities – and thereby reduce risk. Aviva took on 925 million pounds of the British retailer’s defined benefit pension liabilities … [Read more...] about M&S transfers £1.4 billion in pension liabilities to insurers
Americans aren't terrific at saving for retirement. Many are even worse when it comes to figuring out how much to spend once they get there.An actuary who's studied the issue for three decades recently proposed a relatively straightforward strategy that can help. In its simplest form, the "Spend Safely in Retirement " plan suggests waiting until age 70 to claim Social Security and using the IRS' required minimum distribution table to determine how much to withdraw from savings each year.Even those who stop work earlier can use the strategy, or a version of it, to figure out when they can afford to retire and how much they can spend, says Steve Vernon, a research scholar at the nonprofit Stanford Center on Longevity in Stanford, California. Vernon worked with the Society of Actuaries to study nearly 300 different retirement income approaches. The strategy was the best way for middle-income people with $100,000 to $1 million saved to create an income stream, Vernon says.Most people … [Read more...] about How not to run out of money in retirement