March 2017

Regulator’s Lisa rules highlight pension risk warnings

The Financial Conduct Authority has published the regulatory framework for the Lifetime Isa, less than a month before the product is due to be launched. The FCA provisional rules, published in November, remained largely unchanged in the final guidelines, with just a handful of key modifications, most significantly to risk warnings. No change was made to the FCA's decision to allow the Lifetime Isa to be sold without advice. The final rules come almost a year after former chancellor George Osborne announced...

63% of Irish women don’t know how to start a pension

A new study from Standard Life has warned that Irish women are falling behind when it comes to preparing for their future and life after retirement. It's concluded that the average woman needs €30,600 per annum to live comfortably after they retire - but female workers are saving only €1,500 per year. That excludes the maximum state pension of almost €12,400. "The best case scenario for the average woman is a retirement income of €13,900 per annum which is not enough...

World’s Biggest Pension Fund Finds Friend in Trump

One of the world’s most conservative investors has found an unlikely new ally in one of its most flamboyant politicians: Donald Trump. The unconventional president-elect’s victory is helping Japan’s giant pension fund in two important ways. First, it’s sending stock markets surging, both at home and overseas, which is good news for the largely passive equity investor. Second, it’s spurred a tumble in the yen, which increases the value of the Japanese manager’s overseas investments. After the $1.2 trillion Government...

La triste realidad sobre las pensiones de las mujeres

Aunque las mujeres en México son las principales promotoras del ahorro en la familia, la posibilidad de retirarse con una pensión digna sigue siendo más baja que la del hombre, debido, entre otros factores, a que privilegian el ahorro a corto plazo para enfrentar imprevistos por encima de ahorrar para su retiro. Recordó que muchas de las mujeres dejan de laborar para dedicarse por un tiempo, o en su caso de forma permanente, al hogar, lo que afecta directamente sus...

Automatic Adjustment Mechanisms in Asian Pension Systems?

By Elif C. Arbatli, Csaba Feher, Jack Ree, Ikuo Saito & Mauricio Soto (International Monetary Fund) Automatic adjustment mechanisms (AAMs)-rules ensuring that certain characteristics of a pension system respond to demographic, macroeconomic and financial developments, in a predetermined fashion and without the need for additional intervention-have been introduced in many OECD countries to tackle public pension schemes' deteriorating financial sustainability. Incorporating AAMs-in particular linking retirement age to life expectancy-can be an important part of pension reforms in Asia. If implemented...

Financial Inclusion and Consumer Protection in Peru

As part of its Global Policy Initiative, CGAP partnered with the Superintendence of Banks, Insurance and AFPs of Peru in late 2008, with the purpose of enhancing the understanding of the issues and trends in consumer relations when financial services are delivered through branchless banking, particularly through agents, which are used in ever increasing scale in Peru. The product was this joint report. The Superintendence and CGAP coordinated closely on data and information gathering, as well as on writing this...

El Salvador: El Gobierno alcanzará el límite para tomar prestado de las AFP

Este año el Gobierno entrará otra vez en problemas para enfrentar sus compromisos relacionados con las pensiones. Igual que en ocasiones anteriores, necesita hallar una opción segura de obtener dinero para entregar las pensiones a quienes ya están jubilados o en situación de retiro. El riesgo actual es que una de las dos AFP ya no podrá seguir prestándole al Gobierno, como lo ha hecho desde 2006, porque la cuota que permite la ley para hacerlo alcanzará el punto máximo. El...

The State of State Teachers’ Pension Plans

As teachers across the country retire, their pensions are being subsidized by newly hired teachers to a surprising degree. Teachers’ pension plans have always rewarded long-serving veterans at the expense of short-termers. But now, as more and more plans develop shortfalls, states have been imposing cost-cutting measures, and recent research shows that the newest hires are bearing the brunt of the changes, raising questions of fairness. The Plans Received Low Marks The Urban Institute has graded America’s state-run pension systems on...

5 millones de personas se quedarán sin pensión por afores

Alrededor de 5 millones de personas que cotizan en el Instituto Mexicano del Seguro Social (IMSS) y que tienen una afore no recibirán una pensión debido a que no alcanzarán el número de semanas necesarias para jubilarse, indicó Carlos Lozano, presidente del Colegio Nacional de Actuarios. Alrededor de 5 millones de personas que cotizan en el Instituto Mexicano del Seguro Social (IMSS) y que tienen una afore no recibirán una pensión debido a que no alcanzarán el número de semanas...

Afore Sura tiene su primer mandato, por 150 mdd

Afore Sura concretó su primer mandato de inversión con Morgan Stanley Investment Management, por un monto inicial de 150 millones de dólares, el cual estará enfocado en renta variable global. De esta manera, Sura es la tercera administradora de fondos para el retiro (afore) que recurre a la figura de mandatos en el mercado, por medio de la cual se selecciona a un gestor de activos internacionales y con amplia experiencia, para manejar parte de los ahorros de los mexicanos. La...