PLANADVISER - September/October 2018 - 19

Pre-Retirees Expect to Return to Work
The primary reason: To earn more money
FIFTY-THREE percent of workers who
expect to retire in the next five years
also expect to return to work, according
to a survey by Home Instead Inc.
To earn additional income was the
main reason they plan to get another
job, cited by 67%, followed by to fight
boredom (44%) and to keep their mind
sharp (22%). Sixty-eight percent of
those approaching retirement say they
plan to work in a different industry,
and 65% of retirees who have returned
to work say the same.
" Today, more aging men and
women are redefining what their next
chapter looks like, seeking out new
career opportunities that serve their
skills, passions and life goals, " says Jeff
Huber, Home Instead president and
CEO. " We are seeing the desire among
seniors for a second career to not just
fulfill a monetary need but to be a
source of personal fulfillment later in
life. In fact, many of our professional
caregivers are seniors, themselves. "
Nearly 80% of those nearing retirement
or retirees who have returned
to work say they would like to make a
meaningful impact in their community
during their retirement years,
such as through volunteering, caregiving,
teaching or giving back.
Catherine Collinson, CEO of the
Transamerica Center for Retirement
Studies, says that, with people living
longer, retiring at age 65 is an outdated
hallmark.
" With [Baby] Boomers blazing the
way, full retirement is no longer a point
in time, " Collinson says. " The transiWhy
Workers
Anticipate They
Will Un-Retire
67%
44%
To earn
additional
income
To fight
boredom
Source: Home Instead Inc.
tion could be a decade or more and
involve shifting gears and working in a
different capacity. " -Lee Barney
22%
To keep
their mind
sharp
Few Plans Embrace ESG
The DOL is asked to clarify its position on socially responsible investing
IN A REPORT requesting Department
of Labor (DOL) guidance on the use
of environmental, social and governance
(ESG) factors by private-sector
U.S.
retirement plans, the Government
Accountability Office (GAO) says,
retirement plans need to be considering
these factors: Whether or not a
plan takes into account their projected
impact, they could affect investment
returns and, in turn, retirees' financial
health. The GAO also says some
investors believe that companies with
good corporate governance practices
are better managed and will perform
better financially over time.
The GAO specifies environmental
factors as, for example, climate change
impact, energy efficiency and waste
management. Social issues include
labor standards, human rights, and
gender and diversity. Governance
includes board composition, executive
compensation, whistleblower
programs, and accident and safety
management.
Citing a report from US SIF: The
Forum for Sustainable and Responsible
Investment, the GAO says U.S.
investors
are
increasingly
incorporating
ESG factors into their investment
management. US SIF said assets
in the U.S. that considered the factors
in 2016 amounted to $4.7 trillion-14%
more than in 2014, when they were $4.1
trillion. Globally, the amount of assets
using ESG factors was $22.9 trillion in
2016, up 26% from $18.3 trillion in 2014.
Yet, few retirement plans in the U.S.
incorporate the factors into how they
manage investments, the GAO says. It
was informed by asset managers that
retirement plans face several challenges,
including a lack of consistent
and comparable data on ESG factors,
and regulatory uncertainty. According
to the Plan Sponsor Council of America
(PSCA)'s 2016 survey of 600 defined
contribution (DC) plans, only 2% offered
an ESG investment option to participants.
The asset managers told the
GAO that if companies were required
to standardize reporting of ESG factors,
this would help plan sponsors assess
funds that apply the factors.
Asset managers also told the GAO
that, while some findings say incorporating
ESG factors has a positive or
neutral impact on financial performance,
the perception persists that it
could affect performance negatively-
this is another impediment to plans
incorporating ESG. Asset managers also
said that the DOL's guidance on ESG
investing has changed with different
administrations. -Lee Barney
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PLANADVISER - September/October 2018

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