EBRI May 2010 Policy Forum #66

Retirement Income Adequacy: How Big Is the Gap and How Might the Market Respond?


Policy Forum Agenda

Speaker Biographies

Policy Forum Presentations:

1) The State of Retirement Income Preparation and Future Prospects

-- Jack VanDerhei, EBRI & Craig Copeland, EBRI

a. State of the Nation's Preparation

i. EBRI Projections of the Probability of Retirement Income Adequacy for Future Retiree Cohorts
ii. Baseline Projections of the Percentage of Compensation That Needs to be Saved Every Year from 2010 until Retirement (in Addition to Amounts Already Contributed to Defined Contribution Plans and IRAs) for Various Cohorts to Have a 50, 75, and 90 Percent Probability of "Adequate" Retirement Income

b. Sensitivity Analysis of Retirement Security Projection Model (RSPM) Results

i. Modeling Assumptions

1. Market Return Assumptions
2. Employee Behavioral Assumptions
3. Plan Sponsor Assumptions (e.g., Plan Choice and Benefit Generosity)

ii. Policy Assumptions

1. Changes in Medicare
2. Changes in Social Security Retirement Benefits

c. Discussion with a Panel of Experts:

  • Don Ezra, Russell Investment Group
  • Howard Fluhr, The Segal Company
  • Steve Goss, Social Security Administration
  • John Rother, AARP

2) Filling the Gap through the Voluntary System

a. Accumulation Phase

i. 401(k): Success of Auto Enrollment/Auto Escalation - Mark Robinson, T. Rowe Price
ii. Next Generation of TDFs - Lori Lucas, Callan Associates, Inc.
iii. New Trends in Defined Benefit Pensions - Judy Miller, American Society of Pension Professionals & Actuaries (ASPPA)

b. Decumulation Options

i. Institutional IRAs - Tom Johnson, New York Life Insurance Company
ii. Value Analysis of Decumulation Options - Elizabeth Heffernan, Fidelity Investments
iii. Longevity Insurance - Jason Scott, Financial Engines

c. Discussion with a Panel of Experts:

  • Greg Ahern, Investment Company Institute
  • Drew Denning, Principal Financial Group
  • Christine Marcks, Prudential Retirement
  • Lew Minsky, Defined Contribution Institutional Investment Association (DCIIA)
  • Bob Moore, Nationwide Financial
  • Stacy Schaus, PIMCO
  • Jean Young, Vanguard Group

3) Implications for Retirement Plans

a. Discussion with a Panel of Experts:

  • Jim Dwyer, American Express Company
  • Marty Solhaug, Ameriprise Financial, Inc.
  • John Wade, National Rural Electric Cooperative Association (NRECA)