Nevin's Data "Points"

   For years, the retirement industry has been obsessed with one key problem: people aren’t saving enough. Now, “suddenly,” we have another. Retirees aren’t spending “enough.” There’s a certain irony in that. After decades of urging discipline, restraint, and delayed gratification, we’re now concerned that retirees are  too  disciplined — that they’re depriving themselves of the very retirement they spent a lifetime preparing for. Some of that is clearly a byproduct of the defined contribution system itself. We’ve spent years focusing workers on how much they can accumulate, not how much they can spend. Defined benefit plans answered a very different question: What will I get? Defined contribution plans leave retirees staring at a balance and wondering how long it will last.  And once the paycheck stops, that question gets very real, very fast. Because while you can model returns, you can’t model life. Inflation, healthcare costs, longevity—those aren’t just var...

  A new report suggests that small business owners broadly support state-run IRA programs — with the strongest backing among newer firms. Or at least they did. The just-published  survey  comes from Pew Charitable Trusts, which has previously (and consistently) chronicled support for these programs among small businesses.  This latest was conducted among employers in three states where that type of legislation has been introduced:  Massachusetts , Pennsylvania, and  Washington .  According to Pew, support is strong across the board: 84% of respondents in Massachusetts, 76% in Pennsylvania, and 73% in Washington favor establishing an automated savings program (ASP). The report also highlights bipartisan backing, with majorities of Republican, Democratic, and independent business owners expressing support.  It further finds “statistically significant” support among newer firms, those with moderate revenues, service-sector businesses, and — perhaps n...