June 2020
01Jun

Dimes y diretes sobre las pensiones en México

La PEA en México fluctúa entre 55 y 60 millones habitantes. El 60 por ciento (por lo menos 33 millones) se ganan la vida en la informalidad. Sus salarios tienden a ser bajos en comparación con el salario mínimo y no tienen acceso a los beneficios de seguridad social. Por las tendencias demográficas y epidemiológicas, la inviabilidad de los sistemas de reparto es una realidad. Sería apostarle a un sistema que entrará en quiebra técnica. Hoy en día, los...

June 1, 2020
Artículos, Manejo de Pensiones, Regulación, , ,
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01Jun

US pension plans warned they will run out of money by 2028

The weak financial condition of seven US public pension plans threatens to deplete their assets by 2028, leading to severe risks for the living standards of thousands of American employees and retired workers. Many US public pension plans had not fully recovered from the 2007/08 financial crisis before coronavirus struck, triggering turmoil across financial markets. The correction in the US stock market has increased the long-term structural problems across the entire US public pension system, particularly for the weakest...

June 1, 2020
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01Jun

UK university pension fund to axe controversial investments

The UK university pension scheme is to end investments in tobacco, coal and controversial weapons manufacturers after bowing to pressure for policy changes from its membership of academics and higher education staff. The £75bn Universities Superannuation Scheme, the UK’s largest private pension fund by assets, will divest its holdings in tobacco companies and exclude future investments in thermal coal producers along with businesses with ties to cluster munitions, white phosphorus and landmines. Simon Pilcher, chief executive of USS Investment...

June 1, 2020
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01Jun

Nigeria ranks 64th in pension adequacy index –Report

The Allianz Group has put Nigeria in the 64th position in the global ranking of pension development, highlighting the need for further pension reforms in the country. The first edition of the group’s pension report, titled ‘Allianz Global Pension Report 2020: Ready or not’, analysed different country’s pension systems with its proprietary pension indicator, called Allianz Pension Indicator. The API examined the pension systems in terms of sustainability and adequacy of 70 countries to provide a comprehensive view of the...

June 1, 2020
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May 2020
29May

Pension Finance

By M Barton Waring, Robert C Merton Pension plans around the world are in a state of crisis. U.S. plans alone are facing a total accrued liability funding deficit of almost $4 trillion (of the same order of magnitude as the federal debt), a potential financial catastrophe that ranks among the largest ever seen. It has become clear that many government, corporate, and multi-employer pension sponsors will not be able to cope with this crippling debt and may default...

May 29, 2020
Books, Pension design, System Sustainability, ,
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29May

Allianz pension report 2020 the silver swan

By Allianz Even before the Covid-19 outbreak, societies were becoming more and more fragmented over several social fault lines: culture, education, wealth, place of residence. Many of these overlap: The cosmopolitan, well-educated, wealthy people live in (big) cities, whereas more conservative, low-skilled workers tend to live in the periphery. There is, however, one important social fault line that cuts through all these identities: the generation gap. With demographic and climate change (and now the coronavirus pandemic), the generational...

May 29, 2020
Books, Pension design, Reports, System Sustainability, , , , , , , , ,
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29May

The Effect of Workplace Pensions on Household Saving: Evidence from a Natural Experiment in Taiwan

By Tzu‐Ting Yang Population aging causes financial imbalances in pay‐as‐you‐go public pension programs. To remedy this problem, while ensuring the adequacy of retirement savings for employees, many countries complement or substitute public pensions by regulating their workplace pensions. This article exploits a pension reform in Taiwan that has mandated, since 2005, that all private‐sector employers contribute at least 6 percent of an employee's monthly wage to an individual pension account. I use workers in the unaffected sectors as a...

May 29, 2020
Articles, Pension design, Savings, ,
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29May

Integrating Social Insurance and Social Assistance Programs for the Future World of Labor

By Robert J. Palacios, David A. Robalino Given the prevalence of informal labor, most countries have combined contributory social insurance programs (pensions, unemployment benefits, and health insurance), with non-contributory insurance programs and several types of "safety nets." All of these programs involve different types of subsidies and taxes, sometimes implicit. Because of design problems and the lack of coordination/integration between programs, these subsidies/taxes tend to cause four problems: 1) they can reduce incentives to contribute to mandatory insurance programs...

May 29, 2020
Articles, Labor Market, , , ,
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29May

Retirement Reforms: Occupational Strain and Health

By Kantha Dayaram, Alistair McGuire A concurrent increase in the demand for state age pensions and health care has led to reforms in delaying retirement. We employ thirteen waves of longitudinal data to examine the mental and physical health effects of Australian men and women at “early” and “traditional” retirement. We use before and after propensity score matching (PSM) estimates between treatment and control groups of retired and not retired individuals aged 60 and 65 years. The results indicate...

May 29, 2020
Articles, Regulation, State Pensions, State Pensions, , ,
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29May

China to raise pensions, among other social protection measures to reduce impact of COVID-19 crisis

China has over 600 million people whose monthly income is barely 1,000 yuan (USD 140) and their lives have further been affected by the coronavirus pandemic, Premier Li Keqiang said on Thursday. Read also US. The Federal Employee Retirement Plan Should Add, Not Delete Chinese Stocks "The average per-capita annual income in China is 30,000 yuan (USD 4,193), but there are over 600 million people whose monthly income is barely 1,000 yuan (USD 140), not enough to rent a room in...

May 29, 2020
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