This is the third installment of our series on the push for shifting plan sponsorship from employers to service providers and the "institutionalization" of retirement in the US. This week we look back at an employer-led proposal to do that. Image: The logo for ERIC's bold idea in 2007.
'We believe that potential growth will pick up from 1.8% in the 2000’s to 2.8% by the end of this decade. There is no reason that today’s surge in investment spending should be regarded as a short-lived event,' writes our guest columnist.
Industry news and notes
Schwab adds 11 new ETFs to its OneSource platform, LIMRA says Asians spend 11 fewer years saving for retirement than Americans, Hueler introduces stable value fund evaluation tool, Prudential finds many Americans expect to work in retirement, MassMutual to offer T. Rowe Price target date funds, Empower finds Millenials reaping the benefits of retirement plan 'nudges.'
The Harvard economics professor thinks the US should correct Social Security's impending shortfall by gradually raising the age for "full" benefits to 70 from 67, and not by raising the payroll tax to 8% per employee and employer from the current 6.2%.
'The inflows of migrant workers compensate the falling birth rate in our country, which is the gravest threat to the sustainability of our pension system,” an Italian official said this week. But he could have been talking about the US.