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Introduction States and localities account for pensions in their financial statements according to standards laid out by the Governmental Accounting Standards Board (GASB). Under these standards, state and local plans generally follow an actuarial model and discount their liabilities by the long-term yield on the assets held in the pension fund, roughly 8 percent. Most…
The brief’s key findings are: Working longer is the key to financial security, but it does not mean working forever. Half of today’s households are ready to retire at age 65, but more than 85 percent would be prepared by age 70. Thus, five years of additional work would solve the problem for the bulk…
