What do the US election results mean for global employers with US retirement & pension plans? Colin Haines of Haines Global Pensions provides these initial thoughts:
🌏 1. Following last week’s election results, US stock prices and US bond yields rose. This could be good news for some US retirement plans in the form of lower liabilities, higher assets & better funding levels!
A key question is how this will continue and how US and global markets could change in the next 12 to 24 months (especially if there is increased spending, lower taxation but higher inflation)?
ACTION: Global employers could look at some stress-testing and scenario analysis and assess the implications of potential market changes on financing, investment and risk settlement strategies.
🌏 2. ESG investment regulations could be changed again. Will this change how pension schemes invest, or will ESG investing be discouraged?
I found this article from the National Association of Plan Advisers insightful. https://lnkd.in/eJpZUhS8
ACTION: Global employers could look at how their US plan investments compares to those in other countries, and their own corporate ESG objectives.
🌏 3. The new Presidency may result in further changes to household incomes, retirement provision and tax incentives.
The need for employees to have good access to retirement information and education is, as in other countries, likely to be even more important.
ACTION: Global employers can keep thinking about how to best provide and communicate retirement savings to their US employees, especially as part of global financial wellbeing and DC education programmes.
🌎 Haines Global Pensions works with global organisations to help them oversee their pension plans around the world. We can help you work with your local teams and their local advisers to support your head office global governance and risk management objectives.
The information in this post is for educational and informational purposes only. It is not intended and should not be construed as advice.