Suchergebnisse

To supplement replacement income provided by Social Security and employer­sponsored pension plans, individuals need to rely on their own saving and investment choices during accumulation. Once retired, they must also decide at which rate to spend their savings, with the usual dilemma between present and future consumption in mind. This Element explains how financial engineering and risk management techniques can help them in these complex decisions. First, it introduces 'retirement bonds', or retirement bond replicating portfolios, that provide stable and predictable replacement income during the decumulation period. Second, it describes investment strategies that combine the retirement bond with an efficient performance­seeking portfolio so as to reduce uncertainty over the future amount of income while offering upside potential. Finally, strategies using risk insurance techniques are proposed to secure minimum levels of replacement income while giving the possibility of reaching higher levels of income.

The Malta Financial Services Centre gave details earlier this year of draft legislation which if approved by Government could be an important building block in the development of private pensions in Malta. The Malta Retirement Funds Bill, as it is appropriately called, attracted much interest amongst practitioners in the financial services industry. But apart from this, there has been very little media commentary of what the proposed legislation has to offer. The proposed Act goes beyond the provision of retirement schemes for domestic purposes. Indeed when it was first drawn up, the Draft Law was called the Malta International Retirement Funds Act. The idea has been that of creating the legal framework to attract international companies offering retirement benefit packages and schemes to expatriates and companies employing them. ; peer-reviewed

In the wake of recent events, especially the Great Recession of 2007-2009, affecting the economy, resulting in job losses, personal financial distress, and gloomy perceptions of their future well-being, many Americans are concerned about their financial quality of life in retirement. The media is replete with a plethora of advertisements for retirement planning and financial products for an aging population. By 2030, nearly 20 percent of the population of the United States will be 65 or older. This case study was an examination of a group of retirees who are financially secure enough to reside in retirement communities that require prequalification of assets. The study will serve to inform people on the path to retirement of what those who have been successful actually did so that those in the pipeline may take into consideration their actions and avoid acts of commission or omission that might impede or destroy their chances of reaching a financially secure retirement. The study results showed that not only were the participants financially literate, they were planners. It also became apparent that financial literacy was acquired over time and that becoming financially literate and planning for retirement were dynamic processes that were not discrete. Another finding was that although financial literacy may have a positive impact on success in achieving a financially secure retirement, other factors such as world events, self-control, and luck could affect the realization of a retirement that is financially secure. The first-hand qualitative information gathered in the course of this study will enrich comprehension of the scope of the issues of financial literacy and retirement in America and perhaps form the basis of additional academic research. Finally, the conclusions of this study are significant not only for individual prospective retirees, but also for educators, financial industry professionals, and policy-makers as they craft educational programs, construct financial portfolios, and formulate legislation to help ensure the financial security of an ever-growing population of elders. ; Ph. D.