October 2017

03Oct

Singapore. More may be able to transfer CPF savings to parents and grandparents

Proposed changes to the Central Provident Fund (CPF) Act will lower barriers for members to transfer funds to their parents and grandparents for their retirement. The CPF Amendment Bill 2017 was introduced for its first reading in Parliament on Monday (Oct 2). After amendments to the CPF Act are passed, members will have to set aside a lower sum before they can transfer CPF savings in their accounts to their parents and grandparents, the Ministry of Manpower (MOM) said in...

October 3, 2017
News, Slider
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03Oct

UK. Savers who transfer pensions are ill-advised in 53pc of cases, says watchdog

Savers trying to swap their "final salary" pensions for cash face a crackdown from the City watchdog following a damning report into the quality of financial advice they are receiving. Growing numbers of people are swapping final salary pensions for "defined contribution" plans. This involves giving up guaranteed, inflation-proofed income for life, in return for often highly attractive cash offers and greater flexibility over how pensions can be spent. It is thought about 80,000 transfers have taken place this year...

October 3, 2017
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02Oct

Chile. Luis Mesina: “Vamos a acabar con las AFP”

Hasta este domingo se puede participar en el plebiscito organizado por la Coordinadora "No más AFP". La organización estima que han recibido cerca de 300 mil votos sólo en en su pagina web. Por esto es que en conversación con CNN Chile el vocero de la Coordinadora No más AFP, Luis Mesina, indicó que buscan "democracia participativa". Además remarcó, "vamos a acabar con las AFP, no es retórica" apuntando al cambio del sistema que se busca realizar. Bajo esta mirada crítica,...

October 2, 2017
Noticias
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02Oct

US. Prudential Entrusted with Pension Promises to Approximately 45,000 International Paper Retirees

International Paper (NYSE:IP) will settle approximately $1.3 billion of its pension obligations by purchasing a group annuity contract from The Prudential Insurance Company of America (NYSE: PRU), a leader in retirement benefits. The agreement transfers to Prudential the responsibility for paying pension benefits to roughly 45,000 of International Paper’s retirees and their beneficiaries. International Paper’s decision to transfer a portion of its pension obligations to Prudential is consistent with a strong trend among U.S. companies that are seeking solutions to...

October 2, 2017
News, Slider
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02Oct

India. Should NPS managers invest in mutual funds?

The National Pension System (NPS) has dedicated fund managers, called pension fund managers (PFMs), to manage the money you invest in it. But did you know, when you choose to let your NPS money be invested in equity, they are allowed to invest it in mutual funds? For you, as an NPS subscriber, this means added costs because you pay an investment fee to the pension fund managers apart from bearing the underlying expenses of mutual funds. Among the...

October 2, 2017
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02Oct

UK. Millions to miss out on self-employed pensions revolution

Government plans to solve the self-employed savings crisis are in danger of being derailed as new research reveals as many as three million workers are set to miss out. Last year this newspaper revealed the Department for Work and Pensions was to bring the self-employed into an existing system that means all employers must provide pensions for their staff. The set of rules, known as "automatic enrolment", was introduced in 2012 and have meant an extra eight million are now saving for a...

October 2, 2017
News, Slider
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02Oct

pinBox Digital Micro-Pension Inclusion Roundtable 2017

On 12 October 2017, pinBox Solutions and the Walsh School of Foreign Service at Georgetown University are co-hosting the first global policy roundtable on digital microPension inclusion. The roundtable co-sponsored by UNCDF, PFIP, CEM Benchmarking, Center for Financial Inclusion at Accion and microPension Foundation. The roundtable will be platform for the global launch of the new book titled Saving the Next Billion from Old Age Poverty: Global Lessons for Local Action. This book is co-edited by Parul Seth Khanna, William...

October 2, 2017
Adequacy, Aging, Event, Funding, Investing, Labor Market, Management, Slider-Left
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02Oct

Do Limits on Institutional Investment Increase Opportunities For Ratings Shopping at the Margin of Investment and Speculative Grade?

By Joseph Kerstein (Yeshiva University - Syms School of Business), Sungsoo Kim (Rutgers Business School - Camden), Murugappa (Murgie) Krishnan (Yeshiva University) Rating agencies are expected to be concerned about their long-term reputation because if they lose the trust of investors their ratings would lose credibility and value. We expect that there is less effective monitoring and hence more opportunities for ratings shopping within speculative grades because pensions and other similar institutions known for effective monitoring are limited by regulatory...

October 2, 2017
Adequacy, Articles, Investing
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02Oct

Tonuity: A Novel Individual-Oriented Retirement Plan

An Chen, Peter Hieber & Jakob Klein (University of Ulm - Department of Mathematics and Economics) For insurance companies in Europe, the introduction of Solvency II leads to a tightening of rules for solvency capital provision. In life insurance, this especially affects retirement products that contain a significant portion of longevity risk (for example conventional annuities). Insurance companies might react by price increases for those products, and, at the same time, might think of alternatives that shift longevity risk (at...

October 2, 2017
Articles, Funding, Investing, Pension design
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02Oct

Life Insurance as a Retirement Income Tool

By Russell DeLibero & Wade D. Pfau (The American College; McLean Asset Management) Given its tax-preferential treatment, careful study is warranted to determine whether life insurance can play an important role in an overall retirement portfolio. This study develops hypothetical scenarios for different types of individuals with varying ages and distribution periods, while using a historical outlook to determine the proper structure of a variable universal life insurance policy. We compare a variable universal life policy to different investment vehicles...

October 2, 2017
Adequacy, Articles, Labor Market, Savings,
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