admin, Author at Pension Policy International

20JunJune 20, 2017

UK. The Co-operative Bank to raise new capital. Pension Scheme, lynchpin of a £700m deal

The Co-operative Bank has confirmed it is in “advanced discussions” with a group of existing investors to raise new capital. Responding to recent media speculation, Co-op Bank has confirmed talks are progressing with a group of hedge funds on a new deal to recapitalise the bank as well as a “liability management exercise” to swap debt for equity. Sky News reported last week The Co-op Group was locked in a stand-off with the investors about a £200m pension deal, which the...

June 20, 2017

News

19JunJune 19, 2017

Zimbabwe. Impact Investment: Powerful tool for pension funds

There is a growing trend for pensions funds to strategically invest in order to achieve their corporate societal engagement strategy. Impact investment, which support social change while making a financial return has become a powerful tool for institutions such as pension funds as well as insurance companies and corporates. Impact investment, a term coined in 2007, is an approach in which, financial assets are invested with two objectives in mind: The first being to achieve a financial return white the...

June 19, 2017

NewsZimbabwe

19JunJune 19, 2017

Mexico. Medidas depredadoras no mejoran pensiones

El subdirector general de Planeación y Finanzas del Infonavit, Jorge Chávez Presa, dijo que ante la insistente propuesta de que la subcuenta de vivienda pase a las Afore como parte de los recursos para mejorar la pensión de los trabajadores, se debe evitar el diseño de propuestas que perjudiquen su patrimonio y optar por soluciones que mejoren realmente el rendimiento de sus ahorros, en un contexto donde se destina poco para el retiro. “En lugar de estar buscando soluciones depredadoras,...

June 19, 2017

NoticiasMexico

19JunJune 19, 2017

Mexico. Urge elevar aportaciones en pensiones, legisladores ignoran propuesta: Amafore

Ante la urgencia de incrementar el monto de la pensión que garantice una vejez digna, especialistas del sector privado insisten en reformar el sistema de pensiones actual, que integre un aumento a la edad de retiro y que eleve la aportación mínima obligatoria de los trabajadores. Aunque la propuesta, impulsada por la Asociación Mexicana de las Afore (Amafore), ya está vigente y ya fue presentada a los legisladores, todavía no se tiene una respuesta. La razón: poco interés político, previo...

June 19, 2017

NoticiasMexico

19JunJune 19, 2017

UK. FTSE 350 pensions in weakest position since 2009

British listed companies' ability to meet the obligations of their defined benefit, or final salary, pension schemes is at its weakest since 2009 as a result of falling gilt yields, consultancy firm PwC said on Monday. Low interest rates have increased the gap between pension schemes' assets, typically held in UK government bonds, and the fixed sums they need to pay to pensioners. Large pension deficits can reduce companies' ability to pay dividends as they divert cash into the pension schemes...

June 19, 2017

NewsUK

19JunJune 19, 2017

Europe-wide private pension plan is set to hit the market – but it must protect consumers, says Insurance Europe

The commission began consultations last year on its Pan-European Personal Pension Product (PEPP), which is intended to act as an additional income alongside public or workplace pensions. But industry trade body Insurance Europe has noted today that, unless done properly, the move to encourage more people to take out private pensions could end badly. “Insurance Europe welcomes the project of a Pan-European Personal Pension Product as a way to increase both the share of the population with private pensions and the...

June 19, 2017

NewsEU

18JunJune 18, 2017

Chapter 19: Individual Biases in Retirement Planning and Wealth Management

By James E. Brewer & Charles H Self III Around the globe, the gradual move from defined benefit pensions to defined contribution pensions has increased the need for individual retirement planning. Examples of this include U.S. savings rates at historic lows, poor retirement prospects for citizens in developed countries, and the disparaging gap between investor returns and market returns. Research indicates that individuals working with a financial advisor generally receive better results than those who do not. Working with a...

June 18, 2017

Adequacy, Articles, Pension design, SavingsBehavior, Management, Savings

18JunJune 18, 2017

In-Kind Infrastructure Investments by Public Pensions: The Queensland Motorways Case Study

By Michael Bennon, Ashby H. B. Monk & YJ Cho (Stanford University) OECD countries require billions in infrastructure investment for new projects and the rehabilitation of old assets. Public pensions are likewise underfunded and in need of stable, inflation-linked investment opportunities uncorrelated with the rest of their portfolio, making infrastructure a seemingly strong fit. This has led to calls to facilitate more direct investment by public pension funds in infrastructure. In truth there are many impediments to such programs. Under...

June 18, 2017

Articles, Corporate Governance, Investing, SavingsInvestment, Management

18JunJune 18, 2017

What Rates of Productivity Growth Would Be Required to Offset the Effects of Population Aging? A Study of Twenty Industrialised Countries

By Frank T. Denton & Byron G. Spencer (McMaster University) A shift in population distribution toward older ages is underway in industrialised countries throughout the world and will continue well into the future. We provide a framework for isolating the pure effects of population aging on per capita GDP, employ the framework in calculations for twenty OECD countries, and derive the rates of productivity growth required to offset those effects. We consider also some labour-related changes that might provide offsets,...

June 18, 2017

Aging, Articles, Labor Market, RegulationAging, Labor Market, Management

16JunJune 16, 2017

Millions risk pension poverty despite auto-enrolment jump

Overall, workplace pension participation remains highest in the professional occupations with 86 per cent of eligible employees participating in 2016, compared to the lowest in skilled trade occupations (such as plumber, carpenter, welder) where 63 per cent were participating in 2016. The annual total amount saved by eligible savers was £87.1bn in 2016, an increase of £3.8bn on the total amount saved in 2015. In April 2018, auto-enrolment contribution rates will increase from a minimum of 2 per cent overall (with...

June 16, 2017

News

June 2017