February 2020
01Feb

Measuring the ethnicity pensions gap

By The people´s pension Last year The People’s Pension examined in detail the drivers of the yawning gap in pension income between women and men, as the first part of a series examining the UK’s ‘under-pensioned’. Our second report focuses on another dramatically underpensioned group: ethnic minorities. New calculations by The People’s Pension reveal that the UK’s overall ethnicity pension gap – the percentage difference in pension income for pensioners who belong to an ethnic minority group compared to pensioners...

February 1, 2020
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01Feb

Demography and Provisions for Retirement: The Pension Composition, a Behavioral Approach

By B.M.S. van Praag, J. Hop Pensions may be provided for in a modern society by a mix of several methods, namely by voluntary individual savings, mandatory fully-funded occupational pension systems, mandatory social security financed by pay-as-you-go, and old-fashioned hoarding in cash.Here, we call the specific mixture of the four systems the pension composition. We assume that individual workers decide on their own individual savings, that the fully-funded occupational system is decided upon by the age cohort of the...

February 1, 2020
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01Feb

Challenges of Retirement Policy, Social Security Reform, and Retirement Income: A Discussion with Alicia H. Munnell, PhD

By Alicia H. Munnell, Robert Powell, Jason J. Fichtner, Teresa Ghilarducci Director of the Center for Retirement Research at Boston College, Alicia H. Munnell talked with with members of the Retirement Management Journal Editorial Advisory Board in February 2019 about the challenges of addressing retirement policy at the national level and the practical steps advisors can take to help support their clients in retirement. Source: SSRN

February 1, 2020
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January 2020

31Jan

Secure Retirement: Connecting Financial Theory and Human Behavior

By Jacques Lussier Investors fear return uncertainty and drawdowns associated with owning relatively risky asset classes, such as equity. The fact that greater risk is associated with greater expected return does not preclude the possibility that realized returns may be far less than a low-risk asset could provide, even with horizons as long as 5 to 10 years. Fear prompts the average investor to sometimes act against his own best interest. Therefore, the average investor’s portfolio often underperforms a...

January 31, 2020
Articles, Pension design, Savings, ,
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31Jan

UK. Brexit and pensions: everything you need to know

etirement savers will have to keep an eye on state pension payouts, the value of the pound and consumer protections now Brexit Day is here. The question on most people’s minds will be what it all means for them and their money. Read also UK’s ethnic minority pensioners are GBP3,350 a year worse off Pensions will be affected in a number of ways and, like all things when it comes to retirement, it will pay to be prepared. This is...

January 31, 2020
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31Jan

Estonian pension reform passes

The Riigikogu has passed the controversial pension reform bill, by 56 votes in favor to 45 against, making membership of the so-called second pillar of the Estonian pension scheme voluntary, also passing the vote of confidence it attached to the bill. Read also Estonia. Reform leader: We’ll use every means possible to halt pension reform mess The Compulsory Funded Pension Reform Act, to give it its full title, once it comes into effect, will make membership of the so-called second...

January 31, 2020
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31Jan

28% of Americans in Their 60s Are Extremely Short on Retirement Savings

Though there's no magic savings number that guarantees financial security during retirement, as a good rule of thumb, it's smart to close out your career with about 10 times your ending salary socked away. The reason? Social Security will only replace about 40% of the income you're used to if you're an average earner. If you're a higher earner, it will replace even less. Meanwhile, most seniors need considerably more than 40% of their former paycheck to stay afloat...

January 31, 2020
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31Jan

UK’s ethnic minority pensioners are GBP3,350 a year worse off

In the UK, the average pensioner from an ethnic minority is GBP3,350 a year worse off than other people their age, according to new analysis from The People’s Pension. The pension provider’s new report, Measuring the Ethnicity Pension Gap, highlights that the average ethnic minority pensioner’s income is 24.4 per cent less than their white counterpart. The divide is even greater from a gender perspective; on average, the gap in annual pension income between a female pensioner from...

January 31, 2020
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30Jan

South Africa Unions Want Infrastructure Funded by Pensions

The Congress of South African Trade Unions, a key ruling party ally, is pushing senior members of government to consider its proposals to rescue the state’s indebted power utility before next month’s budget. In addition to suggestions it made in a November document that civil servants’ pensions and a state-run unemployment fund be used to cut Eskom Holdings SOC Ltd.’s debt by more than half to 200 billion rand ($14 billion), Cosatu wants the government to consider making it...

January 30, 2020
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30Jan

US. New York State pension fund puts 27 coal companies under review

New York state’s top pension fund official said it was reviewing whether to divest from 27 coal companies and could make decisions on $98 million in holdings within two months. The reviews by the third-largest U.S. state pension system, with $211 billion under management, could set the tone for other retirement plans facing public concerns about climate change. New York State Comptroller Thomas DiNapoli in an interview on Tuesday said his office began reaching out several weeks ago to...

January 30, 2020
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