Our annual How America Saves research provides comprehensive analysis of retirement saving behavior that can help you optimize your plan and improve participant outcomes. A strong plan design can serve participants well in all marketsâ€”even those defined by heightened uncertainty and increased volatility.
The global pandemic has left no corner of the financial markets untouched, leading to negative growth and interest rates that have been cut to nearly zero. Today's investment environment is a challenge. Add to that a global economy most likely in a recession and that challenge is amplified.
Here is a concise summary of the year-to-year actions of the companies that sponsor the largest corporate pension plans, from 2008 to the end of 2019. And, given the unusual circumstances unfolding early this year, we expanded aspects of this analysis to include the first quarter of 2020.
A confluence of factors over the decade since the global financial crisis has steadily nudged the corporate bond market down the investment-grade quality scale. The COVID-19 pandemic threatens to knock some issuers off the scale completely.
We see three phases to the crisis. Markets are largely past the liquidity crunch, and now face the economic fallout from the global shutdown. Then investors will need to assess the shutdownâ€™s long-term global impact.
Although the population and life expectancies of U.S. retirees are increasing, portfolio yields remain at historically low levels. As defined benefit income becomes less commonly available, the need for informed retirement portfolio spending strategies is more critical, and yet more complex, than ever.