admin, Author at Pension Policy International

17OctOctober 17, 2022

U.K. Pensions Doom Loop May Not Be Over

Rebalancing pension portfolios in the wake of the LDI crisis may prove difficult. The Bank of England’s short-term bond-buying program ended on October 14, but that may not mean the end of the problems plaguing U.K. pensions. On Monday, the Bank of England made a series of announcements that were ostensibly designed to outline an “orderly end” to its support. To date, the bank has carried out eight daily auctions, offering to buy up to £40 billion, (US$44.40 billion) and has...

October 17, 2022

NewsPension Management, Regulation, UK

17OctOctober 17, 2022

South African savings grew by 15.4% in 2021, report shows

Allianz unveiled the 13th edition of its Global Wealth Report, which puts the asset and debt situation of households in almost 60 countries under the microscope. In retrospect, 2021 might have been the last year of the old “new normal”, with bullish stock markets powered by monetary policy. Households benefitted handsomely: For the third year in a row, global financial assets grew by double-digits in 2021, reaching €233tn (+10.4%). In these last three years, private wealth increased by a staggering €60tn. This...

October 17, 2022

Newssavings, South Africa

17OctOctober 17, 2022

Economic Concerns Likely to Spur Pension Risk Transfers

The vast majority of plan sponsors say inflation and rising rates are influencing their de-risking decisions. Inflation, market volatility, rising interest rates, and geopolitics are potentially accelerating the pension risk transfer market, according to a report from MetLife. MetLife’s Pension Risk Transfer Poll, which heard from 251 defined benefit plan sponsors who have de-risking goals and $100 million or more in plan assets, found that 95% say higher inflation is “very or somewhat impactful” on their decision to move forward with...

October 17, 2022

NewsInvestment, Risk, Transfers

14OctOctober 14, 2022

Orange Report 2020 Annual Report of the Swedish Pension System

By Pensions Myndigheten The Orange Report 2020 describes the financial position of the national incomebased pension system at the end of 2020, its evolution in 2020, and three scenarios for the future. To put the national income-based system in context, it is related below to, inter alia, information on occupational and private pensions. However, data for these insurance systems are so far only available up to and including 2019, thus the amounts below refer to 2019. Private pension refers only...

October 14, 2022

Books, Books, System Characterization2020, Pension design, Regulation, Sweden

14OctOctober 14, 2022

Mercer CFA Institute Global Pension Index 2022

By Mercer & CFA Institute Mercer and the CFA Institute released its 14th annual Mercer CFA Institute Global Pension Index (MCGPI). Iceland’s retirement income system has once again topped the list, with The Netherlands and Denmark retaining second and third places respectively in the rankings. As more employers have stepped away from defined benefit (DB) plans, the study also investigates the challenges and opportunities with the global shift towards defined contribution (DC) plans where individuals bear increased financial responsibility. The MCGPI...

October 14, 2022

Adequacy, Books, Books, Sustainability, System Characterization2022, Corporate Governance, Pension design, Pension Management, supervision

14OctOctober 14, 2022

Bounded Rationality and Optimal Retirement Age

By Hyeon Park This paper explores a lifecycle model of labor supply and endogenous retirement behavior for households whose planning window is truncated and who will reoptimize as extra information on productivity is revealed over time. This short horizon model internalizes the restriction on rationality for temporal resource allocation and the labor supply is closely dependent on the degree of productivity changes in view. With the model, the endogenous retirement timing---the moment at which the marginal utility from the intended...

October 14, 2022

Articles, Labor Market2022, Retirement Age, Retirement Planning, Social Security

14OctOctober 14, 2022

Herd Behaviour of Pension Funds by Asset Class

By Jacob Antoon Bikker & Ian Koetsier This study investigates asset herd behaviour for Dutch pension funds from 1999 to 2014 using quarterly data. We find herd behaviour for investments in twenty asset classes including non-traditional asset classes, and to both purchasing and selling. Pension funds’ herd behaviour is particularly high in alternative investments, which might increase herding in general, as pension funds move their portfolio towards these assets in recent years. Herding intensity is higher during stock market crises,...

October 14, 2022

Articles, Pension Management2022, Investment, Returns, Risk

14OctOctober 14, 2022

Liability Driven Investment and Asset Allocation inspired by JPM LTCMA

By Eddy H. Verbiest A white-box deterministic system simulates long-term LDI cashflows using as input J.P.Morgan Long Term Capital Market Assumptions adapted to make them interest rate dependent. Trading, coupons and dividends provide cashflows to pay liabilities and extract excess cash to stakeholders while maintaining the allocation weights and target lifes. Performance is measured by FixPct: the annually extractable Fixed Percentage of remaining liabilities to run-off to zero. This measure summarizes the interplay of drivers over many decades and allows...

October 14, 2022

Articles, Investment, Pension Management2022, Investment, Risk

14OctOctober 14, 2022

México. AMLO anuncia revisión a reforma de pensiones por minusvalías de las Afores

A dos años de la reforma, AMLO anunció que hará una revisión de los resultados de las reformas a las Afores y en su caso corregir. El presidente Andrés Manuel López Obrador informó este jueves que someterá a revisión los avances de la reforma al sistema de Afores y determinar si los ajustes planteados por su gobierno son benéficos para el ahorro de los trabajadores. “De todas formas vamos a hacer una revisión sobre eso, para ver si se corrije con...

October 14, 2022

Noticias, NoticiasAdministración de Pensiones, Mexico, Reforma de Pensiones, Rendimientos

14OctOctober 14, 2022

Estados Unidos aumenta pensiones de la seguridad social el 8,7% para 2023

La Seguridad Social es la mayor fuente de ingresos de los jubilados en EE.UU., pero sus bolsillos se han visto mermados por la inflación elevada. La administración dela Seguridad Social de Estados Unidos anunció este jueves un aumento de sus beneficios del 8,7 % para 2023, después de que se diera a conocer el último dato de inflación interanual que bajó el 8,2% en septiembre, aunque sigue siendo una cifra elevada. La oficina explicó en un comunicado que de media este...

October 14, 2022

Noticias, NoticiasIngreso, Seguridad Social, US

October 2022