August 2024
28Aug

UK. DC retirement expectations improve following state pension increase

The expected future living standard in retirement provided by defined contribution (DC) savings improved in Q2, although it is yet to return to the level reached before the 2023 update to the Retirement Living Standards, Aon's UK DC pension tracker has revealed. Aon's DC tracker rose “steeply” from 60 to 65.2 during the quarter, driven primarily by the April 2024 increase in the state pension, together with increases in post-retirement expected investment returns. According to the tracker, all members benefited from...

August 28, 2024
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28Aug

The geopolitical ripple effect of Asia’s ageing population

By 2050, according to the Asian Development Bank (ADB), one in four people in Asia will be aged over 60. This is a threefold increase compared to 2010. China, the economic powerhouse of the region, is projected to see a decrease of 220 million working-age individuals between 2011 and 2050. Japan’s population is expected to decline by 16 per cent by 2050, with the number of senior citizens living alone predicted to jump by 47 per cent. This demographic shift has far-reaching implications that demand the immediate...

August 28, 2024
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28Aug

US. Wealthier workers benefit most from retirement savings ‘nudges’

In the U.S. and U.K. alike, there is growing concern that people aren’t saving enough for retirement. In the U.S. specifically, around 20% of adults age 50 or over report having nothing saved for retirement, according to a recent AARP survey. Nudging behaviors — such as automatic enrollment or auto-escalation in a 401(k) plan — have historically been popular among policymakers to get people to save. However, there has been little investigation into how people adjust their spending patterns when more money is taken...

August 28, 2024
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28Aug

Finland pension funds consider divesting from logging firm after environmental violations

Finnish pension funds including Varma and Elo, both based in Helsinki, are considering divesting from forestry firm Stora Enso with the company being accused of sexism and environmental crimes in the country’s northern region of Suomussalmi, according to an emailed comment to Pensions & Investments. On Aug. 15, logging machinery belonging to Stora Enso was repeatedly driven over a shallow river within a forest in Suomussalmi, and in doing so killed thousands of endangered freshwater pearl mussels, as reported by Finnish public broadcasting...

August 28, 2024
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27Aug

México. Nueva reforma de pensiones ¿Una bomba de tiempo?

Conforme envejece la población, el gasto de pensiones aumenta: En 2024, el Congreso aprobó un presupuesto de $1.99 billones de pesos para pagar pensiones contributivas y no contributivas. Las pensiones contributivas son aquellas otorgadas por instituciones como IMSS e ISSSTE. El IMSS cubre al 75% de los pensionados en México. Las pensiones no contributivas son financiadas con gasto corriente, destinado a programas sociales, como las pensiones del bienestar para adultos mayores. A esto se suma la generación Afore, donde...

August 27, 2024
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27Aug

Chile. Séptimo retiro AFP: este martes se votan los 4 proyectos que se fusionaron

Este martes 27 de agosto la Comisión de Constitución de la Cámara de Diputados votará en general y particular el séptimo retiro de AFP, el cual se decidió fundir cuatro de los proyectos presentados por los parlamentarios. Ante esto, el diputado independiente, Miguel Ángel Calisto, detalló que, "para este martes, esperamos poder votar en general y particular el proyecto de retiro del 10% de los ahorros previsionales". Agregó que, "para nosotros es un proyecto importante, son cuatro mociones parlamentarias que fueron fusionadas y esperamos resolverlo este martes en una sesión donde...

August 27, 2024
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27Aug

Perú. Reforma del Sistema de Pensiones plantea afiliación obligatoria a los 18 años: ¿cómo afectará a los nuevos trabajadores?

El pasado jueves 22 de agosto, el Pleno del Congreso de la República ratificó la reforma previsional aprobada con tan solo 38 votos a favor en junio pasado. Uno de los aspectos más llamativos de la propuesta incluye a los jóvenes de 18 años que recién se introducen al mercado laboral, quienes pasarán directamente al sistema público -administrado por la Oficina de Normalización Previsional (ONP)- si no se decantan a tiempo por el privado. ¿De qué se trata? Según el dictamen, que acumula los proyectos...

August 27, 2024
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27Aug

US. How Are Employees Responding to State-Run Retirement Plans?

Practice Management State-run auto-IRA plans affect private-sector employers but are most of all intended to benefit their employees. How are those employees responding to them? Overall Positive Effects There is research indicating that these plans, in which employers are required register if they do not already offer retirement coverage to their employees, have a variety of positive effects. A number of researchers report that state auto-IRA programs increase coverage by serving as a catalyst to private-sector employers to establish plans of their own. In the...

August 27, 2024
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27Aug

UK. Reeves could raise £10bn a year by reducing pension tax relief, report says

Rachel Reeves could raise at least £10bn a year through a radical shake-up of pensions that would make tax relief less generous to better-off earners, a leading left-of-centre thinktank has said. The report by the Fabian Society says tax breaks for pensions have become markedly more expensive for the government and its proposed changes would fill half the £22bn shortfall the chancellor has identified in the public finances. Reeves has dropped strong hints that she is planning a tough, tax-raising budget on...

August 27, 2024
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27Aug

China pilots housing pension system to enhance people’s living quality

China is piloting a housing pension system in 22 cities including Shanghai, which aims to better facilitate existing housing upgrade and enhance people's housing quality and living environment, the China Securities Journal has reported. In China, home buyers have been paying a "housing maintenance fund" since 1998, which covers maintenance on residential buildings. However, just like humans, housing can get old and sick. By the end of 2022, the proportion of homes in urban areas that were built over 30 years...

August 27, 2024
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