October 2019

07Oct

South Africa. Prescribed assets would upset the rationale for pension funds

One of the main criticisms of prescribed assets is that forcing pension funds into these investments would hurt individual savers. Besides the market distortions that prescribed assets would create, everyone understands that they would deliver below market returns. Under South Africa’s previous dalliance with prescribed assets, this impact was primarily felt by employers. This is because pension funds back then were run in a different way – they were all based on defined benefits. This meant each member did...

October 7, 2019
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07Oct

US. Impeachment And Your Retirement

Here’s why they are related The financial advice industry is known for having strong opinions. Politics is like that too. Especially these days. To be clear, this is NOT a political commentary. I direct you to a zillion other locations on the internet for that. Likewise, it seems to me that people within 10 years either side of retirement (hoping to retire within 10 years or retired within the last 10 years) are bombarded with...

October 7, 2019
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04Oct

Pension Insurance Market Size 2019: Demand, Type, Applications, Share, Global Growth Opportunities, Potential, Trends & Industry Forecast to 2026

By Morris Beck Global Pension Insurance Market Status & Trend Report 2013-2023 Top 20 Countries Data offers a comprehensive analysis on Pension Insurance industry, standing on the reader’s perspective, delivering detailed market data in Global major 20 countries and penetrating insights. No matter the client is industry insider, potential entrant or investor, the report will provides useful data and information. The report segments the Global Pension Insurance market as: Global Pension Insurance Market: Type Segment Analysis (Consumption Volume, Average Price,...

October 4, 2019
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04Oct

Retirement Policy and Annuity Market Equilibria: Evidence from Chile

By Gaston Illanes, Manisha Padi Retirement policy has indirect effects on its beneficiaries, through the “crowd-out” or “crowd-in” of insurance markets. We study how retirement policy in Chile, which limits the drawdown of retirement assets but otherwise does not provide or require fixed income in retirement, results in more than 60% of eligible retirees purchasing private annuities at low prices. We estimate a demand model to show that replacing this voluntary policy with partial mandatory annuitization and removing limits...

October 4, 2019
Articles, Pension design, ,
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04Oct

Computer As Confidant: Digital Investment Advice and the Fiduciary Standard

By Nicole G. Iannarone Digital investment advisers are the fastest growing segment of financial technology (fintech) and are disrupting traditional investment advisory delivery models. The computer-led investment advisory service model may be growing particularly quickly due to a confluence of social and political factors. Politicians and regulators have increasingly focused on the standards of care applicable to investment advice providers. Fewer Americans are ready for retirement and many lack access to affordable investment advice. At the same time, comfort...

October 4, 2019
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04Oct

Defined Benefit Pension De-Risking and Corporate Investment Policy

By Brian Silverstein U.S. corporate sponsors of defined benefit pension plans in recent years have been de-risking by paying premiums to transfer their pension plan assets and liabilities to the balance sheets of third party insurers. The passage of the Moving Ahead for Progress in the 21st Century Act (MAP-21) in 2012 provided the pension funding relief necessary to make de-risking a mainstream corporate activity. This study provides the first empirical analysis of plan and firm factors that cause...

October 4, 2019
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04Oct

México. Cambios en las Afore dan atractivo al país, dice HMC Capital

Los cambios regulatorios en las Afore, que ahora pueden invertir en fondos de inversión, y la inversión en Certificados de Capital de Proyectos de Inversión (Cerpis) fueron la puerta de entrada que la firma de inversiones y asesorías HMC Capital analizó para incursionar en el mercado mexicano. Felipe Held, CEO y fundador de la firma, indicó en entrevista para El Financiero, que habían estado esperando claridad sobre cómo la reforma del sistema de pensiones afectaría a la industria de...

October 4, 2019
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04Oct

Costa Rica. Junta Directiva de la CCSS acuerda objetar proyecto de ley que pretende que trabajadores retiren recursos de pensión complementaria

Así lo anunció Román Macaya Hayes,presidente ejecutivo de la institución, durante su comparecencia ante los miembros de la Comisión Permanente de Asuntos Hacendarios de la Asamblea Legislativa de Costa Rica. El ROP es un fondo constituido por los aportes de los patronos y los trabajadores para otorgar una pensión mensual que complemente la pensión básica. El fondo de pensión obligatorio se forma con los aportes equivalentes al 4,25% del salario reportado en las planillas de la CCSS. De este...

October 4, 2019
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04Oct

UK. Defeat for women in state pension age challenge

Campaigners have lost a significant legal battle against the government's handling of the rise in women's state pension age. The retirement age for women rose from 60 to 65, in line with men, and will go up to 66 by 2020, and to 67 by 2028. Women born in the 1950s claim the rise is unfair because they were not given enough time to make adjustments to cope with years without a state pension. They argued the changes were...

October 4, 2019
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04Oct

France. Macron seeks to placate French over pension reforms

French President Emmanuel Macron sought to ease fears over his controversial pension reform Thursday in a debate with concerned citizens over the plan that has sparked protests by train drivers, pilots, lawyers, doctors and police. Macron’s move to modernise France’s retirement system is part of an election pledge to put the country on a solid financial footing — a mission that calls for painful changes in a country where many people have seen their spending power decline. Macron’s government...

October 4, 2019
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