February 2018

19Feb

The Optimal Allocation of Longevity Risk with Perfect Insurance Markets

By Antoine Bommier (ETH Zürich) & Hélène Schernberg (ETH Zurich) This paper discusses the allocation of aggregate longevity risk in the case of perfect insurance markets. We show that the optimal allocation transfers some risk to the pensioners, even if pension providers have access to a perfect insurance market. Individuals prefer contributions and benefits to depend on the evolution of aggregate mortality rates rather than being fixed. Indeed, this flexibility offers an interesting diversification strategy where the prospect of a...

February 19, 2018
Aging, Articles, Labor Market, Management, Pension design, , ,
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19Feb

How Persistent Low Expected Returns Alter Optimal Life Cycle Saving, Investment, and Retirement Behavior

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 the...

February 19, 2018
Articles, Investing, Savings, , ,
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16Feb

El Gobierno argentino oficializa el primer aumento de pensiones tras la polémica reforma

El Gobierno argentino oficializó hoy un aumento del 5,71 % de las pensiones, el primero de los cuatro previstos para este año tras la polémica reforma aprobada en diciembre pese al fuerte rechazo social y los disturbios ocurridos ante las puertas del Congreso. A través de una resolución publicada en el Boletín Oficial con la firma del secretario de Seguridad Social, Juan Carlos Paulucci, se estableció la subida, que se aplicará a partir de marzo. Leer Más: Agencia EFE

February 16, 2018
Noticias
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16Feb

Steel pensions scheme victim to ‘major mis-selling scandal’

In 2017 the Indian firm announced a restructuring of the £14bn fund to keep its UK loss-making operations afloat. But the government, Tata and regulators failed to protect 124,000 members from a "major mis-selling scandal", the Work and Pensions Select Committee said. The UK government has yet to issue its response to the "neglect" claim. Read More: BBC News

February 16, 2018
News, Slider
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16Feb

Investing for retirement: a long-term game many workers aren’t even playing

As a bullish 2017 stock market continued its steady rise to record breaking levels, President Trump and others took the opportunity to highlight these gains for retirement savers and their 401(k)s. But that record-breaking streak came to end in early February as the stock market finally tumbled, reminding us that what goes up usually comes down. The lesson from this: highlighting short-term gains to retirement portfolios can do more harm than good to long-term retirement savings and can weaken the...

February 16, 2018
News, Slider
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16Feb

US. State Pensions Need Reforms, Not Fewer Options

Across the country, state and local pension systems have not amassed enough assets (stocks, bonds, and other financial investments) to cover the retirement benefits promised to current and retired state and local employees. This gap is referred to as the pension funds’ “unfunded liabilities”. According to the Pew Charitable Trusts, the unfunded liabilities of state-administered pension systems across the country were $1.1 trillion in 2015 – a 17 percent increase from 2014! According to the American Legislative Exchange Council, the...

February 16, 2018
News
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16Feb

US. Judge certifies class action against NYU in pension management case

A federal judge in Manhattan has certified a class of approximately 20,000 members in a lawsuit accusing New York University of mismanaging its employees’ pension plans. U.S. District Judge Katherine Forrest on Tuesday said the case is appropriate for class treatment because the facts that will ultimately prove or disprove the claims about the plans’ management are the same for every individual class member. Read More: Reuters

February 16, 2018
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16Feb

Ghana. BEIGE launches a nationwide campaign to educate informal and formal workers on Pensions

The ‘EveryDayPension’ retirement plan allows subscribers to save at least GH50 a month to enable them to secure comfortable financial future. Speaking at a forum Thursday before the launch of the scheme at the Holiday Inn in Accra, Director of Planning, Research, Monitoring and Evaluation at the National Pensions Regulatory Authority (NPRA), Ernest Amartey-Vondee, said due to a lack of proper pensions planning, many Ghanaians receive very meagre pensions during retirement. Citing recent figures from the Social Security and National Insurant...

February 16, 2018
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16Feb

Jubilados exigen al Gobierno de Nicaragua aumento en monto de pensiones

La Unión Nacional del Adulto Mayor (UNAM) demandó al Gobierno descartar una reducción de las pensiones, como lo propuso el Fondo Monetario Internacional (FMI), pero a la vez los jubilados pidieron se les incremente el monto de las pensiones reducidas conforme el salario del sector industrial. Las exigencias de la UNAM incluyen, además, que el Instituto Nicaragüense de Seguridad Social (INSS) les entregue un paquete de alimentos a aquellos jubilados, que por no haber completado el número de cotizaciones por...

February 16, 2018
Noticias
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15Feb

Jubilados exigen al Gobierno de Nicaragua aumento en monto de pensiones

La Unión Nacional del Adulto Mayor (UNAM) demandó al Gobierno descartar una reducción de las pensiones, como lo propuso el Fondo Monetario Internacional (FMI), pero a la vez los jubilados pidieron se les incremente el monto de las pensiones reducidas conforme el salario del sector industrial. Las exigencias de la UNAM incluyen, además, que el Instituto Nicaragüense de Seguridad Social (INSS) les entregue un paquete de alimentos a aquellos jubilados, que por no haber completado el número de cotizaciones por...

February 15, 2018
Noticias
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