August 2020

21Aug

Trading for Development in the Age of Global Value Chains

By World Bank Global value chains (GVCs) powered the surge of international trade after 1990 and now account for almost half of all trade. This shift enabled an unprecedented economic convergence: poor countries grew rapidly and began to catch up with richer countries. Since the 2008 global financial crisis, however, the growth of trade has been sluggish and the expansion of GVCs has stalled. Meanwhile, serious threats have emerged to the model of trade-led growth. New technologies could draw production...

August 21, 2020
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21Aug

Life Insurance: The Savings Solution for the Thai Elderly

By sivalap sukpaiboonwat The main objective of this work is investigating life insurance is the alternative choice of savings for Thai elderly. The study uses primary data from research questionnaire by online survey from the 400 observations in December 2018. The statistics used in the analysis include descriptive statistics composed of the percentage. The research finds the first rank of financial planning is the bank deposit with 32.1 percent, the second rank is life insurance with 27.3 percent and...

August 21, 2020
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21Aug

Financial Knowledge Overconfidence and Early Withdrawals from Retirement Accounts

By Sunwoo T. Lee, Sherman D. Hanna Early distributions from retirement accounts could endanger future retirement income security, and the U.S. has restrictions to discourage them, including possible tax penalties. On the other hand, tapping one’s retirement assets may be rational when an individual encounters financial hardship. With the 2020 Coronavirus Aid, Relief, and Economic Security Act (CARES Act), early distribution from retirement accounts became an even more attractive option to individuals. In this study, we examined factors related...

August 21, 2020
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21Aug

Study of an SB2 Beneficiary’s Pension Plan

By Enriqueta Mancilla-Redón, Carmen Lozano Arizmendi The individual account pension system established by the Social Security Act 1997 shows that the contributions of beneficiaries invested in retirement fund managers have had negative returns and the investment instrument in which the contributions of the retirement savings system are invested are not known. The objective of this study is to analyze the contributions in AFORES of an SB2 classification beneficiary invested in SIEFORES and the performance they have generated that the...

August 21, 2020
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21Aug

US. Sustainability Matters: Overwhelming Opposition to Proposed Regulation Limiting the Use of ESG in Retirement Plans

The U.S. Department of Labor has proposed a rule that would limit the use of investments that consider environmental, social, and corporate governance factors in worker retirement plans subject to ERISA, including 401(k) plans. Read also US. DOL Issues New Rules On Retirement Plan Income Disclosures The proposed rule questions the financial materiality of ESG issues and assumes that ESG-focused investment strategies and funds are primarily focused on providing “nonpecuniary” benefits, often at the expense of “pecuniary” benefits, otherwise known...

August 21, 2020
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21Aug

Australia. Govt now says Centrelink pensions might not go up, but won’t go backwards

Pensioners won’t get the automatic boost they are used to in September because inflation has fallen. Read also Australia. PM flags pension could rise even though cost of living has fallen Scott Morrison has instead opened the door to offering them a top-up payment in the October budget. Read also Pension Giant Says Radical Post-Covid Changes to Hit Investments But his finance minister, Mathias Cormann, does not appear enthusiastic about the potential sweetener. “Indexation arrangements are there to take account of...

August 21, 2020
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21Aug

Make Pension Savings Mandatory For Jamaicans, Actuary Suggests

Chief actuary at Actman International Limited, St Elmo Whyte, says the Government should make pension contributions compulsory for Jamaicans as security in their retirement. Contributions to the national pension scheme is compulsory for employed persons, but compliance is below par, while private employers are not required to set up schemes for their workers. The actuary said at the Sterling Asset Management virtual investor forum, in which he was a panellist this week, that there must be a way to...

August 21, 2020
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21Aug

UK. How COVID-19 will affect women’s pensions in the long term

It is clear that the pandemic is more than just a health crisis, but an economic one too. Since the lockdown was introduced in March, millions of people have been furloughed or made redundant. And not only is the financial fallout of coronavirus affecting women more severely than men, it will continue to impact their savings for years to come. Prior to the virus, women only saved a third of the amount that men do by the time they...

August 21, 2020
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21Aug

Volkswagen Mexico agrees 5.5% hike in worker pay and benefits

Volkswagen’s Mexico unit has agreed an increase in worker pay and benefits of 5.46 percent, the local union for the German automaker said on Tuesday, after the company froze worker salaries in Germany this year due to the coronavirus crisis. Read also US. 27% of Savers Have Decreased or Stopped Retirement Plan Contributions Due to the Coronavirus Manuel Aburto, spokesman for the Independent Union of Automotive Industry Workers, said the deal for a new 2020-21 collective contract comprised a salary...

August 21, 2020
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20Aug

Pension Giant Says Radical Post-Covid Changes to Hit Investments

Canada’s largest pension fund says some of the “radical changes” in consumer behaviors enforced during the pandemic lockdown are here to stay. The Canada Pension Plan Investment Board’s thought leadership lab sees permanent changes to consumer behavior as a result of the global pandemic. The era after Covid-19 will be defined by wider adoption of e-commerce among older consumers, as well as by long-term impacts on health-care and privacy policy, all of which will impact investment portfolios, it says....

August 20, 2020
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