August 2019

09Aug

On the Optimal Combination of Annuities and Tontines

By An Chen, Manuel Rach, Thorsten Sehner Tontines, retirement products constructed in such a way that the longevity risk is shared in a pool of policyholders, have recently gained vast attention from researchers and practitioners. Typically, these products are cheaper than annuities, but do not provide stable payments to policyholders. This raises the question whether, from the policyholders' viewpoint, the advantages of annuities and tontines can be combined to form a retirement plan which is cheaper than an annuity...

August 9, 2019
Articles, Investing,
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09Aug

Gender Gap in Savings Goal Choice: Evidence from Mixed Methods

Ariane Hillig, Jerome Monne, Janette Rutterford, Dimitris Sotiropoulos There has been a good deal of research on gender psychological differences in the context of financial decision making, but no research on the impact of gender difference in the setting of savings goals. To address this question we use two unique datasets, one quantitative and one qualitative. Our quantitative results show that men set more challenging savings goals than women, even when we control for wealth, income, and portfolio risk...

August 9, 2019
Articles, Labor Market, Pension design, Savings, ,
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09Aug

Tenure Choice, Portfolio Structure and Long-Term Care – Optimal Risk Management in Retirement

By Hans Fehr, Maurice Hofmann We study the interplay between tenure decisions, stock market investment and the public social security system. Housing equity not only serves a dual purpose as a consumption good and as an asset, but also provides insurance to buffer various risks in retirement. Our life cycle model captures these links in order to explain why homeownership in Germany is so low. Our simulation results indicate that the public long-term care as well as the pension...

August 9, 2019
Articles, Investing, Pension design, Pension Management, ,
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09Aug

The Political Economy of Social Security Reform

By Michael Boskin, Diego Perez, Daniel Bennett We identify which types of Social Security reforms are supported when people vote in their financial self-interest, under alternative economic and demographic projections and voting proclivity assumptions. While 40% of voters have negative lifetime net transfers, less than 10% have negative future transfers under the unsustainable status quo. Framing the problem as a choice between reforms is necessary for any to receive majority support. Delayed reforms are often preferred, but immediate tax...

August 9, 2019
Articles, Regulation, System Sustainability, ,
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09Aug

Perú. Las AFP presentan retornos mixtos por guerra comercial

Los episodios de volatilidad de los mercados financieros globales, producto de las tensiones comerciales entre Estados Unidos y China y de la incertidumbre sobre la trayectoria de las tasas de interés de la Reserva Federal (FED), han tenido un efecto sobre el desempeño de los fondos de pensiones administrados por las AFP. De esta manera, la rentabilidad nominal promedio de esos fondos presenta resultados mixtos en base a los portafolios de inversión de cada uno. Así, entre julio...

August 9, 2019
Noticias,
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09Aug

México. Inversión en bienes raíces, alternativa para complementar su pensión

Este 2019, la Comisión Nacional del Sistema de Ahorro para el Retiro cumplió 25 años, y aunque existen avances en la materia, también se mantienen los retos, en especial con el ahorro pensionario de los trabajadores, por ello, es importante generar estrategias a largo plazo donde obtenga ingresos extra y así complementar la pensión que recibirá en un futuro. Todo, con el objetivo de vivir una vejez en paz. En este sentido, es importante que evalúe todas las opciones...

August 9, 2019
Noticias,
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09Aug

UK. The rise of the Fintech sector

The UK’s Fintech (Financial Technology) sector is on the rise – despite Brexit uncertainty investors have put $16bn into the UK fintech market in just the first-half of 2018, a level of investment surpassing that of both the US and China. The UK remains the main hub in Europe for financial technology start-ups, providing over 60,000 jobs. Cloud Computing & The Foundations of Banking: In a highly competitive market, high-street banks are in pursuit of digital transformation with business...

August 9, 2019
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09Aug

Club Vita Unveils New Model for Predicting Life Expectancy Based on ZIP+4 Codes, Modernizing Longevity Risk Management Techniques for U.S. Pension Plans

Club Vita, a provider of longevity risk data, announced today the publication of a new white paper, “Zooming in on ZIP Codes,” which addresses how integrating ZIP codes and identifying other socioeconomic factors can help pension plan sponsors better capture diversity and sharpen life expectancy estimates for their participants. Having accurate estimates is essential for sponsors as they assess how much money to save to make their future payments. Club Vita teamed up with Mercer, a global consulting leader...

August 9, 2019
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09Aug

Brazilian Hedge Funds Are Betting Big on Stocks

Brazil’s top hedge fund managers are increasing bets that the stock market will be the best place to profit from the government’s expanding reform agenda. Firms including Verde Asset Management, which has almost 40 billion reais ($10.1 billion) under management, and Bahia Asset Management increased their holdings of local equities after the pension system overhaul cleared its biggest hurdle in the lower house last month. BlueLine Asset Management, which recently launched its first fund, is favoring Brazilian shares over...

August 9, 2019
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09Aug

Engaging stakeholders for the long term

Stakeholder engagement is important for listed corporations. In the 2018 revisions to the Code of Corporate Governance, a new pillar and principle was added for “Managing Stakeholder Relationships”. A stakeholder is here defined as a party that has an interest in the corporation and can either affect or be affected by it. Many people associate stakeholders with the employees, customers, suppliers and, of course, shareholders of the company. However, companies should take note that their material stakeholders should extend...

August 9, 2019
News, Slider
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