October 2019

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...

Colombia y Brasil tienen las menores edades de pensión en los países de la región

El miércoles fue aprobada la reforma pensional en Brasil, un hecho sin precedentes en la economía más grande de la región que, según reseñó El País de España, ha sido calificada por la Ocde como “insostenible” y la razón es que los brasileños se jubilan muy jóvenes: mientras la Ocde habla de estimados de 55 años de edad para los hombres y también las mujeres, otros organismos indican que la edad promedio es de 57 para los hombres y...

AFP en Chile admite errores: en Perú se busca elevar aportes

Jubilación. Administradoras privadas señalan que las rentabilidades de los fondos no son el problema de la baja pensión, sino los escasos depósitos al sistema y el factor demográfico. “Hay muchos errores que hemos cometido las Administradoras de Fondos de Pensiones. Todos cometemos errores”. Es la autocrítica que la Asociación de AFP de Chile hizo en medio de las protestas que se viven en ese país donde se exige −entre otros− el retiro de las empresas que administran su jubilación...

México. Protestan jubilados frente a Palacio Nacional, piden aumento en pensiones y eliminar esquema de Afores

Un grupo de jubilados de diferentes dependencias federales se manifestaron en Palacio Nacional para demandar la eliminación de las Afore y que las pensiones se incrementen en la medida que aumenten los salarios mínimos, con el fin de quitar la Unidad de Medida y Actualización (UMA). Frente a la Puerta Mariana del inmueble que habita el presidente Andrés Manuel López Obrador, los Consejeros Nacionales de Adultos, expusieron que “el neoliberalismo” ha utilizado a las Administradoras de Fondos para el...

Perú. Plan de infraestructura atrae inversión de las AFP

Las Administradoras Privadas de Fondos de Pensiones (AFP) evalúan invertir en proyectos priorizados a través del Plan Nacional de Infraestructura para la Competitividad, mediante el fideicomiso creado para ese fin, informó la Asociación de AFP (AAFP). “En la medida en que los proyectos (del Plan Nacional de Infraestructura para la Competitividad) se vayan ejecutando o modernizando; nosotros podemos participar como inversionistas, como ya lo hemos hecho en anteriores oportunidades”, sostuvo el gerente de inversiones de Profuturo AFP, Gino Bettocchi.En...

UK. Watchdog hails success of auto-enrolment pensions

Regulators and financial experts are hailing a rare public policy success after figures on Britain’s “auto-enrolment” scheme revealed 10 million more people are now saving, with record amounts going into pensions. British workers saved £90.4bn into their pension schemes in 2018, according to the Pensions Regulator – £7bn more than the year before. Behind the surge in saving is auto-enrolment, the scheme set up by the government in 2012 to make sure everyone, whether they work for a supermarket...

Germany: Age Limits For Occupational Pensions Not Discriminatory Against Women

The Federal Constitutional Court clarified that maximum age limits for occupational pension benefits do not violate the general principle of equality. This confirms the jurisdiction of the Federal Labor Court, according to which maximum age limits for occupational pension schemes do not constitute age discrimination or even discrimination against women. Federal Constitutional Court, Non-acceptance order July 23, 2019 – Case 1 BvR 684/14 The complainant had initially retired from gainful employment due to the birth of her child and...

Ireland. Defusing the pension time bomb

The Government’s recently published “National Risk Assessment 2019” identified Ireland’s rapidly-ageing population as a significant risk to a number of essential areas. There is talk from some quarters that the State pension will eventually disappear due to rising costs. Is this simply scaremongering from those with skin in the game, or should people be fearfu for the future of a cherished benefit? Aisling Kelly, senior healthcare consultant at Mercer, says she is not of the opinion that the State...

Mozambique Receives US$35 Million Grants of Additional Financing for Social Protection [EN/PT]

The World Bank approved today an International Development Association (IDA)* grant of US$35 million equivalent from the institution’s Crises Response Window as additional financing to scale up the Government of Mozambique’s safety net programs in response to the devastating effects of the cyclones Idai and Kenneth on people’s livelihoods in affected communities. This financing is accompanied by a US$10 million grant from a Multidonor Trust Fund supported by the Department for International Development, United Kingdom, the Netherlands, and Sweden....

Where does retirement income come from in the US?

Most of us depend on a paycheck to provide the funds we need to cover costs of living. But when you retire, your paycheck ends even though you still need a source of support. While different retirees may have their own unique income streams, such as money from alimony or from real estate investments, the most common sources of cash for seniors include the following. 1. Social Security For 50% of married couples and 70% of unmarried...