
<p>Retirement insights from a Colorado PERA perspective</p>



<p></p>


A distant view shows a mountainous landscape with sloping peaks, green trees in the foreground, and a cloudy sky above.


<h4 class="wp-block-heading"><a href="https://finance.yahoo.com/news/fed-schmid-says-uncertain-far-183000678.html" target="_blank" rel="noreferrer noopener" class="broken_link"><strong>Fed Officials Fret Over How Far They Can Lower Interest Rates | Bloomberg via Yahoo! Finance</strong></a></h4>



<p>What will the Federal Reserve do next? It appears even Fed officials aren’t sure, given their comments at a recent conference. While it’s likely we’ll see additional interest rate cuts in the future, it’s unclear how low they’ll go, as officials have suggested the rate needed to keep inflation in check may be higher than in the pre-pandemic years.</p>



<h4 class="wp-block-heading"><a href="https://www.planadviser.com/retirement-benefits-valued-workers-last-year/" target="_blank" rel="noreferrer noopener"><strong>Retirement Benefits Valued by More Workers Than Last Year | PlanAdviser</strong></a></h4>



<p>Retirement benefits have grown in importance to workers, according to a recent survey. That survey found 62% of respondents said retirement plans contributed most to their financial security, up from 56% the year before. Other priorities included health insurance and paid time off.</p>



<h4 class="wp-block-heading"><a href="https://www.cnbc.com/2024/11/11/credit-card-debt-among-retirees-jumps-significantly.html" target="_blank" rel="noreferrer noopener"><strong>Credit Card Debt Among Retirees Jumps | CNBC</strong></a></h4>



<p>New poll data shows just how much retirees’ credit card debt has grown in recent years. According to the Employee Benefit Research Institute, 68% of retirees had outstanding credit card debt in 2024, up from 40% just two years ago. In general, EBRI says retirees and those approaching retirement today are much more likely to have debt—and more of it—than in the past.</p>



<h4 class="wp-block-heading"><a href="https://www.nextavenue.org/guide-model-for-dementia-caregivers/" target="_blank" rel="noreferrer noopener"><strong>GUIDE Model Offers Hope, Support for Dementia Caregivers | Next Avenue</strong></a></h4>



<p>The Centers for Medicare and Medicaid Services is rolling out a major initiative known as Guiding an Improved Dementia Experience (GUIDE). The new framework aims to fill existing gaps in dementia care and support for caregivers—including training and education, financial assistance for caregiver breaks, and better access to around-the-clock virtual care.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Fed Charting Uncertain Course with Interest Rates


<h4 class="wp-block-heading"><a href="https://www.plansponsor.com/employers-risk-facing-turnover-without-comprehensive-benefits-offerings/" target="_blank" rel="noreferrer noopener"><strong>Employers Risk Facing Turnover Without Comprehensive Benefits Offerings | PLANSPONSOR</strong></a></h4>



<p>In a new survey, workers overwhelmingly said benefits are a key factor in determining where to work, with 70% of respondents saying they would be willing to switch jobs to gain better benefits. The survey found younger workers value education and training benefits, while 87% of older workers said retirement benefits are a top priority.</p>



<h4 class="wp-block-heading"><a href="https://www.thinkadvisor.com/2024/04/23/dol-releases-final-fiduciary-rule/" target="_blank" rel="noreferrer noopener"><strong>DOL Releases Final&nbsp;fiduciary&nbsp;Rule | ThinkAdvisor</strong></a></h4>



<p>The U.S. Department of Labor has released the final version of a new rule that clarifies who is considered a&nbsp;fiduciary&nbsp;when providing investment advice. Experts say the new rule adds protections for consumers, who can be more confident they’re receiving good financial advice that’s in their best interests.</p>



<h4 class="wp-block-heading"><a href="https://coloradosun.com/2024/04/30/colorado-prescription-drug-affordability-board-concerns/" target="_blank" rel="noreferrer noopener"><strong>Colorado Wants to Lower Prescription Costs. Why Are Patients Opposed? | The Colorado Sun</strong></a></h4>



<p>Three years ago, Colorado created the Prescription Drug Affordability Board to review drug prices and potentially place limits on how much manufacturers can charge for medications. Drugmakers have pushed back against the board’s authority, and some patient advocates have now joined the opposition out of fear that price caps could lead to manufacturers pulling their life-saving drugs from Colorado pharmacies.</p>



<h4 class="wp-block-heading"><strong><a href="https://www.nirsonline.org/reports/women2024/" target="_blank" rel="noreferrer noopener">What Do Women Think About Retirement? | National Institute on Retirement Security</a></strong></h4>



<p>There’s long been a gender gap in retirement, with women generally having less money saved due to lower wages and other factors. According to a recent survey of working women, more than 75% of women think retirement is only getting harder, and 82% say every worker should have access to a pension for retirement security.</p>



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<p><em>News You Should Know is a digest of news from publications around the nation about finance, investing, and retirement.</em></p>


News You Should Know: Majority of Workers Say Benefits Influence Job Choices


<p>How well do you know the PERA benefits that Colorado PERA provides?</p>



<p>Whether you&#8217;re new to PERA, or you&#8217;ve been working for a PERA employer for 20 years, it&#8217;s important to know how a monthly benefit is calculated, benefit options and other basics.</p>



<p>The quiz below takes just a few minutes to complete and includes links to helpful information on PERA&#8217;s website.</p>


<p>[ays_quiz id=&#8217;2&#8242;]</p>



<div style="height:42px" aria-hidden="true" class="wp-block-spacer"></div>



<p><strong>Resources for learning more about PERA benefits:</strong></p>



<ul>
<li><a href="https://www.copera.org/benefit-basics" target="_blank" rel="noreferrer noopener">PERA benefit basics</a></li>



<li><a href="https://www.copera.org/pera-frequently-asked-questions" target="_blank" rel="noreferrer noopener">Frequently asked questions (FAQs)</a></li>



<li><a href="https://www.copera.org/video-library" target="_blank" rel="noreferrer noopener">Video library</a></li>



<li><a href="https://www.copera.org/webinars" target="_blank" rel="noreferrer noopener">Webinars</a></li>
</ul>


Quiz: Test Your Knowledge of PERA Benefits


<p>A new report highlights how spending by public sector retirees across the United States helped support jobs and local economies during the tumultuous first year of the COVID-19 pandemic.</p>



<p>In <a href="https://www.nirsonline.org/reports/pensionomics2023/" target="_blank" rel="noreferrer noopener"><em>Pensionomics 2023</em></a>, researchers from the National Institute on Retirement Security (NIRS) state public and private pension plans paid out nearly $613 billion in retirement benefits in 2020, resulting in $1.3 trillion in total economic output as retirees turned around and spent those dollars. Retirees also paid taxes on those benefits, paying nearly $158 billion to federal, state and local governments. In total, NIRS estimates retiree spending supported nearly 6.8 million U.S. jobs in 2020.</p>



<p>Pension benefits from state and local plans made up more than half of the pension benefits paid that year, totaling more than $334 billion, according to NIRS. In <a href="https://www.nirsonline.org/wp-content/uploads/2023/01/pensionomics2023_CO.pdf" target="_blank" rel="noreferrer noopener">Colorado alone</a>, public sector retirees received $5.5 billion in pension benefits in 2020, translating to $7.9 billion in total economic output and supporting 45,267 jobs. Those jobs represented 1.5 percent of the state’s total workforce.</p>



<h4 class="wp-block-heading"><strong>Colorado PERA’s economic impact</strong></h4>



<p>PERA is the largest retirement plan serving public employees in Colorado with nearly 650,000 members.</p>



<p>More recently, in 2021, PERA paid $4.35 billion in retirement benefits to more than 110,000 Colorado retirees. That resulted in $6.8 billion in total economic output and supported 31,449 jobs statewide, <a href="https://www.copera.org/u-s-pension-benefits-played-important-economic-role-in-first-year-of-pandemic" target="_blank" rel="noreferrer noopener">according to a report by Pacey Economics</a>. In addition, retirees paid $382.2 million in state and local taxes on those PERA benefits.</p>



<blockquote class="wp-block-quote">
<p><strong>READ MORE:</strong> <a href="https://peraontheissues.com/pera-benefits-contribute-billions-of-dollars-to-state-economy-support-thousands-of-jobs/" target="_blank" rel="noreferrer noopener"><strong>PERA Benefits Contribute Billions of Dollars to State Economy, Support Thousands of Jobs</strong></a></p>
</blockquote>



<p>The steady stream of income that defined benefit pensions provide is an important economic driver, providing a measure of stability when it’s needed the most. </p>



<p>“Every month, PERA pays out hundreds of millions of dollars to retired public employees and their beneficiaries across Colorado, and those dollars are spent in their local communities,” said PERA Executive Director Ron Baker. “Retiree and beneficiary spending is a vital part of Colorado’s economy, and the stabilizing effect of that spending has been evident amid the economic uncertainty we’ve experienced in recent years.”</p>


Tag Archives:

News You Should Know: Fed Charting Uncertain Course with Interest Rates

News You Should Know: Majority of Workers Say Benefits Influence Job Choices

Quiz: Test Your Knowledge of PERA Benefits

U.S. Pension Benefits Played Important Economic Role in First Year of Pandemic

Subscribe to PERA On The Issues