A Florida lawmaker is proposing the state’s retirement fund stop investing in gun makers following a deadly high-school shooting last month. The officials who manage those investments say that would be a mistake. Read More: Wall Street Journal
The UK’s biggest pension funds are being asked how they are protecting people’s savings from the risks of climate change. The chairwoman of the parliamentary Environmental Audit Committee (EAC), Mary Creagh, has written to the top 25 pension funds in the UK to ask how they manage the risks that global warming poses to pension savings. It comes after an admission from the Government that “a lack of attention and outright misunderstanding remain widespread” among fund trustees on their duty to...
By Richard A. Ippolito In this provocative book, Richard A. Ippolito explores the relationship between employees' preferences for certain types of pension plans and their productivity. Ippolito begins by reviewing how pensions influence workers' behavior on the job, helping employers reduce early quit rates and increase early retirement rates. In a novel contribution, Ippolito then shows how pensions can assist employers in attracting and retaining workers who have personal attributes valued by the firm. Challenging the accepted view of defined contribution...
By Moira Somers The advice is sound; the client seems eager; and then… nothing happens! Too often, this is the experience that financial professionals encounter in their daily work. When good recommendations go unimplemented, clients’ well-being is compromised, opportunities are lost, and the professional relationship grows strained. Advice that Sticks takes aim at the problem of financial non-adherence. Written by a neuropsychologist and financial change expert, this book examines the five main factors that determine whether a client will follow through...
UK Department for Work and Pensions This paper forms the Government’s response to a consultation on the draft Occupational Pension Schemes (Administration and Disclosure) (Amendment) Regulations 2018, which ran from the 26 October 2017 to 7 December 2017. The draft Regulations were designed to: introduce requirements for certain occupational schemes offering money purchase benefits to publish charge and transaction cost information, disclose this to members and others, and tell members where to find it; and introduce requirements for the same...
By Philip Bunn (Bank of England), Paul Mizen (University of Nottingham; Bank of England; Centre for Economic Policy Research (CEPR)) & Pawel Smietanka (Bank of England) Large deficits have opened up on defined benefit pension schemes in the United Kingdom since 2007, and at the same time investment expenditure has been subdued; this is a common phenomenon in other countries too. We use privileged access to a unique new data set from The Pensions Regulator and two identification schemes to...
By Vanya Horneff, Raimond Maurer & Olivia S. Mitchell This paper explores how an environment of persistent low returns influences saving, investing, and retirement behaviors, as compared to what in the past had been thought of as more “normal” financial conditions. Our calibrated lifecycle dynamic model with realistic tax, minimum distribution, and Social Security benefit rules produces results that agree with observed saving, work, and claiming age behavior of U.S. households. In particular, our model generates a large peak at...
La OCDE, en su informe económico sobre Chile, de febrero de 2018, en relación a sistema de pensiones, señala que “proporciona modestas pensiones para los individuos de ingresos medios”, atribuyendo esta responsabilidad a la baja tasa de cotización, que en Chile es algo más de la mitad del promedio de los países de la OCDE; la baja edad de jubilación, particularmente en las mujeres, que es de 60 años; y las lagunas previsionales o la baja densidad de cotización,...
El Ministerio de Hacienda quiere aprobar para las personas mayores, sean o no jubilados, una ayuda fiscal similar a la que existe actualmente para las familias numerosas y que se articula como un impuesto negativo. De esta forma, la medida beneficiaría a todas las personas mayores a modo de una "prima fiscal por edad", independientemente de que paguen o no IRPF y más allá de que estén o no jubilados, dado que el 'cheque fiscal' se entregaría a todos los...
El año pasado el Gobierno implementó el régimen de Reprogramación de Pago de Aportes Previsionales al Fondo de Pensiones (Repro-AFP), que entró en vigencia este año. Dos meses después, hay 263 entidades públicas subnacionales que registran deudas vencidas con las AFP, informó la presidenta de la Asociación de AFP (AAFP), Giovanna Prialé. Del universo de 1.885 entidades regionales y municipales, un 43% se ha acogido al régimen Repro-AFP, es decir, 814. Según cifras del Ministerio de Economía y Finanzas (MEF),...
