January 2019

28Jan

UK. On pensions, the government has placed freedom over protection – but will it make us better off?

Many are choosing cash over annuities because they don’t think they will live long enough to get good value from an annuity, even though many would. In short, lots of people are making a financial mistake The “pushmi-pullyu” in the 1967 film of Doctor Dolittle was a double-headed llama, with one head facing forward and the other back. Pensions policy in the UK in recent years has borne a resemblance to this contradictory animal. In 2012 the government introduced...

January 28, 2019
News, Slider,
Read more...
27Jan

Work for a brighter future

From Global Commission On The Future Of Work New forces are transforming the world of work. The transitions involved call for decisive action. Countless opportunities lie ahead to improve the quality of working lives, expand choice, close the gender gap, reverse the damages wreaked by global inequality, and much more. Yet none of this will happen by itself. Without decisive action we will be heading into a world that widens existing inequalities and uncertainties. Technological advances – artificial intelligence, automation and...

January 27, 2019
Books, Labor Market, System Sustainability, ,
Read more...
27Jan

China's High Savings: Drivers, Prospects, and Policies

By Longmei Zhang (International Monetary Fund), Ray Brooks (International Monetary Fund   - Asia and Pacific Department), Ding Ding (International Monetary Fund), Haiyan Ding (International Monetary Fund), Hui He (International Monetary Fund), Jing Lu (International Monetary Fund), Rui Mano (International Monetary Fund) China's high national savings rate-one of the highest in the world-is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from...

January 27, 2019
Aging, Articles, Labor Market, Savings, ,
Read more...
27Jan

China’s High Savings: Drivers, Prospects, and Policies

By Longmei Zhang (International Monetary Fund), Ray Brooks (International Monetary Fund   - Asia and Pacific Department), Ding Ding (International Monetary Fund), Haiyan Ding (International Monetary Fund), Hui He (International Monetary Fund), Jing Lu (International Monetary Fund), Rui Mano (International Monetary Fund) China's high national savings rate-one of the highest in the world-is at the heart of its external/internal imbalances. High savings finance elevated investment when held domestically, or lead to large external imbalances when they flow abroad. Today, high savings mostly emanate from...

January 27, 2019
Aging, Articles, Labor Market, Savings, ,
Read more...
27Jan

Putting the Pension Back in 401(k) Retirement Plans: Optimal versus Default Longevity Income Annuities

By Vanya Horneff (Goethe University Frankfurt - Research Center SAFE), Raimond Maurer (Goethe University Frankfurt - Finance Department), Olivia S. Mitchell (University of Pennsylvania - The Wharton School; National Bureau of Economic Research (NBER)) A recent US Treasury regulation allowed deferred longevity income annuities to be included in pension plan menus as a default payout solution, yet little research has investigated whether more people should convert some of the $15 trillion they hold in employer-based defined contribution plans into lifelong income streams. We investigate this...

January 27, 2019
Articles, Investing, Pension design, , ,
Read more...
25Jan

Escándalo de corrupción del hijo de Bolsonaro perjudica reformas en Brasil

Una nube de corrupción se cierne sobre la política brasileña, amenazando con descarrilar el ambicioso programa de reformas gubernamentales y con destruir las esperanzas de ciudadanos e inversores ansiosos de un cambio. Esta frase podría haberse escrito numerosas veces durante el último cuarto de siglo. Pero pocos brasileños o inversores extranjeros esperaban leer algo así en enero de 2019, durante las primeras semanas de un gobierno electo basado en una plataforma dedicada a erradicar la corrupción y a promover...

January 25, 2019
Noticias,
Read more...
25Jan

México. Da Amafore visto bueno a la iniciativa de AMLO para reformas en el ahorro para el retiro

La Asociación Mexicana de Administradoras de Fondos para el Retiro (Amafore) dio su visto bueno a la iniciativa de reforma a la Ley de los Sistemas de Ahorro para el Retiro (SAR) presentada por el presidente Andrés Manuel López Obrador (AMLO) al Congreso de la Unión. A través de un comunicado, el organismo sectorial presidido por Bernardo González Rosas indicó que los cambios propuestos permitirán a las Afores "diseñar estrategias de inversión más diversificadas, en busca de mejores rendimientos...

January 25, 2019
Noticias,
Read more...
25Jan

Chile. Comisión de Usuarios de sistema de AFP reclama que alza de 4% de la cotización será muy lenta

De acuerdo a la entidad, un periodo de ocho años para subir cuatro puntos “es excesivo”, ya que así las pensiones subirán 40% recién en 50 años. Piden que se reduzca. La Comisión de Usuarios del sistema de pensiones publicó ayer un informe donde analiza la Reforma de Pensiones impulsada por el gobierno del Presidente Piñera y que actualmente está siendo discutida en la Cámara de Diputados. En el documento, los representantes de los cotizantes del sistema de AFP...

January 25, 2019
Noticias,
Read more...
25Jan

Warning: Many Seniors Face Nearly Impossible Financing 30 Years Of Retirement With 40 Years Of Work

Many workers are facing a nearly impossible challenge: financing 30 years of retirement with only 40 years of work, two National Bureau of Research economists warned today. “If a couple (in their early 60s) retired today, the survivor of the couple would have about a 40 percent chance of living an additional 30 years,” Robert Clark and John Shoven said in a report to a Brookings Institute symposium on the elderly in the workplace. With the Baby Boomer...

January 25, 2019
News, Slider,
Read more...
25Jan

Most Companies Plan to Get Rid of Their Pension Liabilities

Plan sponsors are increasingly turning to options like annuity buyouts to eliminate their pension obligations. More U.S. companies are considering transferring away their pension liabilities, according to a new survey by MetLife. Roughly two-thirds of the 102 plan sponsors polled by the insurance company last year stated that they were interested in conducting an annuity buyout, up from 46 percent in 2015. Interest in pension buyouts among American companies has increased as Fortune 500 companies like FedEx and Raytheon...

January 25, 2019
News, Slider
Read more...