Tag Archives: S&P STRIDE Indices

Jul 20, 2020

Impact of Inflation Expectations on Retirement Income

Our latest S&P STRIDE dashboard showed a dramatic increase in the cost of retirement income for various retirement dates (vintages) in Q2.  For example, the present value of an inflation-adjusted stream of cash flows equal to USD 1 per year – or USD 1/12 per month – starting in 2065 and ending 25 years later,…

READ

Apr 30, 2019

How Is Your Undefined Benefit Plan Going?

I have probably been receiving them for years, but lately I have noticed opposing position papers in my inbox. Some claim Americans need a revival of defined benefit (DB) plans because of a looming retirement crisis, while others contend that defined contribution (DC) plans are doing great and there is no cause for alarm. DC…

READ

Jun 19, 2018

Monitoring Progress Toward an Income Goal

In a previous blog post, I described some benefits of having an income goal and a method of estimating one’s retirement income liability. I reviewed a hypothetical example to illustrate steps 1-2 from the list of benefits below, and I calculated a net estimated retirement liability (the portion of retirement income one must fund with…

READ

Jul 10, 2017

How to Address Retirement Income in Investment Policy Statements

Recently, the US Department of Labor (DOL) turned its attention to the adequacy of a retirement plan participant’s account balance, stimulating two debates about how to improve participant outcomes.[1] The first debate concerns how to help participants measure their “retirement readiness” in terms of income replacement at retirement. The second centers on whether there are…

READ

Nov 11, 2016

Benchmarking Retirement Withdrawal Strategies

Capital market benchmarks are, of course, widely used yardsticks of investment performance. For the production of the S&P STRIDE Index, in addition to providing performance data we also calculate hypothetical retirement income for vintages of the index that are at, or past, their target date. Hypothetical retirement income is expressed in index points, and can…

READ

Jul 12, 2016

How Benchmark Selection Can Support a Retirement Plan’s IPS

Sponsors of 401(k) plans sometimes do not approach the selection of capital market benchmarks as if it has a significant role to play in the implementation of their investment policy statements (IPSs).  They may leave benchmark selection to investment managers, consultants, or service providers, but in so doing they may be missing an opportunity to…

READ


Sign up to receive Indexology® Blog email updates