July 2017

How Hard Should We Push the Poor to Save for Retirement?

By Andrew G. Biggs (American Enterprise Institute) More than half of U.S. states are working to establish programs what would automatically enrollment in Individual Retirement Accounts (IRAs) workers who are not offered a retirement plan by their employer. These programs are designed to address a perceived shortfall of retirement saving, particularly among low-wage workers who are less likely to be offered an employer-sponsored plan. But the designers of state-run auto-IRA plans fail to consider three questions: Do the poor need...

Policy Reflection: Letter of Credit Usage by Defined Benefit Pension Plans in Canada

By Norma L. Nielson & Peggy L. Hedges (University of Calgary) There is an argument to be made for letting corporations hold off on contributing to their employees’ defined benefit pension plans, as long as there is a guarantee the cash will come eventually. That is the reason that provincial governments began allowing creditworthy companies to instead provide a letter of credit, backed by a Canadian bank, guaranteeing the cash deposit, and secured by the company’s line of credit or...

Super industry defends ‘comfortable’ retirement

Australians need to make up their own minds about the standard of living they aspire to in retirement. To do so they need information, which is why the Association of Superannuation Funds of Australia (ASFA) publishes definitions of a "modest" and "comfortable" living standard for retirees. A recent article in Sunday Money criticised the "comfortable" living standard, quoting panelists at two Fairfax subscriber events on retirement. Full Content: The Sidney Morning Herald Remember to subscribe to our free weekly newsletter for more news or subscribe to our...

Women’s participation rate will reduce pensioners’ risk of poverty by 2060

This is the main indication of the annual report of the Research Committee on Aging (CEV), published on Wednesday. With more than 8% in 2015, the pensioners' risk of poverty rate is expected to fall below 6% in 2060, with an acceleration of the decline from 2030, according to the VEC outlook. The projected decline in the risk of poverty is explained initially by a revaluation of social benefits. The increase in minimums and the GRAPA (Old Age Income Guarantee) have...

Gobierno de El Salvador presenta nueva reforma de Pensiones

La inicitiva del presidente de la República, Salvador Sánchez Cerén, la diputada del FMLN, Lorena Peña, trató de introducir ayer al pleno de la Asamblea Legislativa una nueva propuesta para reformar el Sistema de Ahorro Previsional (SAP); sin embargo, solo logró 42 votos. Pese a que se intentó conocer la propuesta, el FMLN mantuvo secretismo, y alegó que se conocerá en la comisión de hacienda. A través del diputado Rolando Mata y de una presentación digital a la que...

UK. CII to launch pension transfers qualification

The Chartered Insurance Institute is launching a new pension transfers qualification following the FCA’s proposals to change the rules relating to pension transfer advice. The level four certificate in pension transfers advice includes a new level six unit, pension transfers, which will open in August. It also includes three existing level four units: financial services regulation and ethics, investment principles and risk, and pensions and retirement planning. Seven thousand CII members with statements of professional standing are qualified to give pension transfer...

México. Afores, moderadas ante régimen sin mínimos

El Sistema de Ahorro para el Retiro (SAR) comenzó en julio de 1997 como emulación del sistema de pensio nes de Chile (AFP), con diferencias en sus pilares. Con la adopción del modelo, el SAR estipuló la tasa y forma en que habría de ser la contribución de los afiliados, así como el régimen bajo el que se invertirían los recursos. El sistema se reconflguró con los años para seguir amoldado al chileno y adoptó el criterio de separar a los...

Chile. Superintendencia ordena a AFP Habitat suspender encuesta “incompleta” a clientes

La Superintendencia de Pensiones instruyó este miércoles a AFP Habitat a suspender la denominada "Campaña encuesta clientes" difundida a través de diversos medios masivos y en su sitio, luego de detectar que la información enviada a sus afiliados está incompleta y que puede inducirlos a equívocos y confusiones. El sondeo invita a sus asegurados a responder tres preguntas referidas al destino y la administración de un 5% de ahorro adicional que se establecería en el proyecto de ley de reforma...

Gobernador defiende la reforma de Pensiones de Puerto Rico

Aunque el Capítulo de Jubilados y Pensionados de la Federación de Maestros denunció ayer “el saqueo” de su sistema de retiro, debido a la aprobación del proyecto cameral 188, el gobernador Ricardo Rosselló aseguró que la medida legislativa no representa una “amenaza”, sino que viene a garantizar el pago de la pensión de los empleados públicos que un día trabajaron para el gobierno. Rosselló precisó que “el sistema de retiro bajo un fondo de retiro se acabó… no existe”, ante...

How will evolving employment models impact retirement savings: The case of Singapore

Freedom, flexibility, being your own boss—the proposition of the gig economy certainly caters to these stereotypical desires of millennials, as well as enabling individuals to supplement their income. Technology has led to the rise of the gig economy, with the likes of Foodpanda, Grab, and Airbnb among others ostensibly providing a win-win situation for both service providers and consumers. For individuals, the gig economy enables easy access to paid work, freedom to schedule working hours, and helps avoid the misery of...