Retirement Industry People Moves

Segal appoints Tauzer to senior VP; Cerulli promotes O’Brien to director; Newton announces Brain as deputy CIO.

Segal Appoints Tauzer to Senior VP

Todd Tauzer

The Segal Group promoted Todd Tauzer to senior vice president at the San Francisco-based workplace benefits and human resources consultant, a spokesperson confirmed.

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Tauzer is responsible for “partnering with major city, county, and other municipal retirement systems, primarily throughout California and the West, to build and maintain funding policies and system practices to secure benefits over time through sound funding discipline and thoughtful risk management strategies,” Tauzer wrote on LinkedIn.

Tauzer had been Segal’s national public sector retirement practice leader, having joined in 2019 as a vice president and actuary.


Cerulli Associates Promotes O’Brien to Director

Shawn O’Brien

Cerulli Associates promoted Shawn O’Brien to director of retirement data and analytics, reporting to Bing Waldert, managing director of U.S. Research.

O’Brien was previously an associate director of retirement, responsible for leading the retirement practice. He joined Cerulli Associates in 2019 as a senior retirement analyst.


Newton Investment Management Announces Brain as Deputy CIO

Paul Brain

Newton Investment Management, part of BNY Mellon Investment Management, has promoted Paul Brain to deputy chief investment officer.

In the newly created role, Brain will focus on developing Newton’s multi-asset capabilities. Brain’s existing role as head of fixed income will be assumed by Ella Hoxha, who joins from Pictet Asset Management, on July 31.

“Paul has been with the business for over 20 years and has a depth of experience that will provide our multi-asset franchise with a rigorous leader committed to delivering innovative client solutions anchored on investment performance,” Euan Munro, Newton’s CEO, said in a statement.


SS&C Announces Appointment of Schell as CFO

Brian Schell

SS&C Technologies Holdings Inc. announced the appointment of Brian Schell as chief financial officer and executive vice president. He will report to SS&C Chairman and CEO Bill Stone.

Schell joins the firm from Cboe Global Markets, where he was executive vice president, CFO and treasurer. He has more than 30 years of experience at financial institutions, including H&R Block, the FDIC, KPMG and JP Morgan.

“I am pleased to welcome Brian,” Stone said in a statement. “Brian is a seasoned finance leader in the technology and financial services industries and is known for deftly navigating the capital markets.”

Bui Named Head of U.S. Equities, ETPs at Nasdaq

Giang Bui has started a new position as head of U.S. Equities and ETPs at Nasdaq, according to LinkedIn and confirmed by a spokesperson.

Bui previously served as head of U.S. exchange-traded products at Nasdaq. Prior to Nasdaq, she worked at Cboe Global Markets as director of listings and manager of exchange-traded products.

Gen Xers Profess Low Retirement Confidence, Concerns About Guaranteed Income

As many in the generation worry they cannot rely on Social Security or a pension for lifetime income, Gen Xers fear their savings will be insufficient in retirement, according to IRI research.

Generation X employees, more than those of any other generation, are worried about their retirement savings lasting throughout their lifetime and worry they cannot rely on Social Security according to research from the Insured Retirement Institute.  

Gen Xers, between the ages of 41 and 56, are significantly less likely to expect retirement income from a public or private pension than Baby Boomers or current retirees, IRI found, and many believe they will need more income than Boomers or current retirees to maintain their desired lifestyles in retirement.  

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After interviewing 2,241 adult Americans aged 40 to 80, the IRI found that 68% of those in Gen X expect Social Security will provide a guaranteed source of income, as opposed to 88% of Boomers and 93% of retirees.  

In addition, many Gen Xers believe they will need more income than Boomers or current retirees and therefore need to save aggressively to sufficiently compensate for the income they believe will not come from Social Security or pensions. 

According to the IRI’s report, 58% of Gen Xers said they expect to cover basic expenses and travel/leisure during retirement, but only 15% said they feel very confident in their ability to live comfortably.  

“Given lack of confidence in Social Security, the declining prevalence of pensions, lower savings, and higher expectations for income needs, it is unsurprising to see Gen X convey the lowest confidence in the sustainability of their savings,” the report stated. “Current retirees have the highest confidence, in part due to the higher likelihood of having sources of guaranteed lifetime income other than Social Security but also due to the experience of living in retirement and making lifestyle adjustments.”  

Boomers have the highest average savings of $652,780, according to IRI’s research, both because they have had longer to save than Gen X and because those who were sampled have not retired yet. Unsurprisingly, Gen Xers have the lowest savings, compared to Boomers and retirees, of $404,068, which the IRI argued will not support lofty income expectations. 

Focus on Retirement Saving  

Perhaps partly because of this heightened fear of outliving their savings in retirement, Gen X has higher contribution and 401(k) enrollment rates, as compared with other generations. 

According to the Transamerica Center for Retirement Studies’ new report, “Post-Pandemic Realities: The Retirement Outlook of the Multigenerational Workforce,” 81% of Gen X workers are saving for retirement in a 401(k) or similar plan and/or outside the workplace. On average, they began saving at age 30, and those participating in a 401(k) or similar plan contribute a median of 10% of their annual pay. 

Transamerica also found that Gen X workers have saved an average of $82,000 in total household retirement accounts and only $5,000 in emergency savings. However, 19% have dipped into their retirement savings by taking a hardship withdrawal or early withdrawal.  

Bank of America’s 2023 Financial Life Benefits Impact Report concluded that Gen X males participate in their 401(k)s at the highest rate, with 70% contributing to their 401(k). At the same time, Gen X men and women take out more loans and carry larger loan balances than other generations, according to Bank of America. 

Investment Preferences 

Later-stage workers and retirees overwhelmingly want their income sources to be guaranteed for life, according to the IRI. In terms of investment preferences, Gen Xers, in particular, are very interested in investment options that provide downside protection, lifetime income or both.  

While consumers are largely reluctant to explore annuities as a retirement income option, 17% of Gen Xers indicated a desire to purchase an annuity for lifetime income, which the IRI argued could be the start of growing awareness among workers that sufficient and secure retirement income will continue to move in the direction of becoming a personal responsibility, especially with Social Security increasingly viewed as a supplemental source of income.  

That’s not to mention that the Social Security Board of Trustees projected that the Old-Age and Survivors Insurance Trust Fund is expected to become depleted in 2033.  

The majority of Gen Xers (73%) said they prefer target-date funds as investments in their defined contribution plan, but variable annuities with lifetime withdrawal benefits, registered-index-linked annuities and fixed-index annuities fell close behind.  

The IRI labeled these as “encouraging findings,” as the SECURE 2.0 Act of 2022 increases opportunities for annuities to be included in workplace plans to help American workers save for retirement and use their savings for income they cannot outlive.  

“The time is now to hone education and marketing efforts toward Gen Xers and apply lessons learned to the next generation approaching their peak earning years, which also happens to be the largest generation in history: Millennials,” said Frank O’Connor, vice president of research at IRI, in a statement.  

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