editor, Author at Pension Policy International

25OctOctober 25, 2023

MPs pension scheme abandons UK stocks

MP retirement savings have been pulled out of British companies – despite the Chancellor pushing pension schemes to invest tens of billions in UK business. Jeremy Hunt has called on pension funds to plough at least 5pc of their assets into British start-ups and private equity in a bid to boost growth. However, his own Parliamentary pension scheme now invests just 1.7pc (£14m) in British companies, down from nearly 12pc the year before. When Mr Hunt first announced the policy at his...

October 25, 2023

NewsInvestment, Public Pensions, UK

25OctOctober 25, 2023

Korea sees accelerating drop in birth rate

The number of babies born in Korea in August plummeted to the lowest level in nearly three years, data showed, Wednesday, heightening concerns of a looming demographic crisis driven by the world’s lowest fertility rate, decline in marriage and aging population. Statistics Korea said a total of 18,984 babies were born in August, down 12.8 percent from a year earlier. It marks the steepest year-on-year decline since November 2020, when the number of childbirths dipped 15.5 percent. The latest tally also marks...

October 25, 2023

NewsAging, South Korea

25OctOctober 25, 2023

Retirees tend to be happier than younger people — even if their finances aren’t great

Much of the work we do suggests that people are not saving enough for retirement. More specifically, since 2006 we have published our National Retirement Risk Index (NRRI), which uses the Federal Reserve’s triennial Survey of Consumer Finances to compare households’ projected replacement rates — retirement income as a percentage of preretirement income — with targets that would maintain their standard of living. Those households with a projected replacement rate that is more than 10% below the target are characterized as...

October 25, 2023

NewsAging, Income, Retirement Planning

25OctOctober 25, 2023

World’s largest sovereign wealth fund loses $34 billion as all asset classes fall in third quarter

Norway’s $1.4 trillion sovereign wealth fund, the world’s largest, on Tuesday reported losses of 2.1% in the third quarter, as all asset classes fell in value. The so-called Government Pension Fund Global returned a loss of 374 billion Norwegian kroner ($34 billion) in the third quarter, citing a weaker three-month period, compared with the first half of the year. The results were still 0.17 percentage point stronger than the return on the fund’s benchmark index. The fund last reported a quarterly loss...

October 25, 2023

NewsInvestment, Norway, Pension Management

24OctOctober 24, 2023

México. Abren puertas del IMSS y del Infonavit a los trabajadores independientes

Las personas que trabajen por cuenta propia podrán afiliarse al Instituto Mexicano del Seguro Social (IMSS) y tener acceso pleno a sus coberturas y servicios, incluidos los aportes para el Instituto del Fondo Nacional de la Vivienda para los Trabajadores (Infonavit). El Senado de la República aprobó por unanimidad reformas a los marcos legales de ambas dependencias para reconocer el derecho a la afiliación voluntaria de los trabajadores por cuenta propia y de los mexicanos que laboran en el exterior a la seguridad social. “Para...

October 24, 2023

NoticiasMexico, Sector Informal, Seguridad Social

24OctOctober 24, 2023

Chile. Cotizantes de AFP suman siete meses de caídas, tendencia que no se registraba desde el inicio de la pandemia

Las lagunas previsionales es uno de los temas estructurales que preocupan a los expertos vinculados al sistema de pensiones. La densidad de cotizaciones, vale decir, el número de años que las personas cotizan para su pensión sobre el tiempo total desde que comienzan a trabajar hasta el retiro, es inversamente proporcional al monto de la jubilación que logrará obtener. Actualmente, las personas ahorran para su pensión el 54,1% del tiempo en promedio, lo que está explicado por períodos de lagunas...

October 24, 2023

NoticiasAdministración de Pensiones, Chile, Rendimientos

24OctOctober 24, 2023

México. Afores cobrarán por tercer año una comisión de 0.57% en el 2024: Consar

En el 2024, y por tercer año consecutivo, las administradoras de fondos para el retiro (afores) cobrarán 0.57% de comisión sobre el saldo de los trabajadores, informó la Comisión Nacional del Sistema del Ahorro para el Retiro (Consar). El tope en la comisión fue consecuencia de la reforma a la Ley de los Sistemas del Ahorro para el Retiro del 2020 en la que se planteó que el porcentaje de comisión a cobrar se obtendrá del promedio de los sistemas...

October 24, 2023

NoticiasAdministración de Pensiones, Mexico

24OctOctober 24, 2023

U.S. state pension plans’ funding ratios fall in Q3

U.S. state pension plans' aggregate funding ratios fell in the third quarter to the lowest level since the end of 2022, according to Wilshire Advisors estimates. For the quarter ended Sept. 30, the estimated ratio dropped by 3 percentage points from three months earlier to 75.2%, the result of an estimated 3% decrease in asset values exacerbated by an estimated 0.8% increase in liability values. It is the lowest estimated ratio since Dec. 31, when Wilshire estimated an aggregate funding ratio...

October 24, 2023

NewsFunding, State Pensions, US

24OctOctober 24, 2023

Fund managers are updating bond models to capture a new risk

A growing number of asset managers is reassessing bond values tied to real assets, as a spike in the frequency of flash floods, fires and storms hits conventional pricing models. Mitch Reznick, head of sustainable fixed income at Federated Hermes, says climate risk is a key reason why the investment manager is now underweight real estate credit. Jonathan Bailey, global head of ESG and impact investing at Neuberger Berman Group, says he's increasingly looking at whether issuers have enough capital to...

October 24, 2023

NewsClimate crisis, Pension Management, Risk

24OctOctober 24, 2023

Zimbabwe seeks compensation for pensioners whose savings were wiped out in 2009

Zimbabwe wants the retirement industry to help compensate pensioners who lost their savings 14 years ago following a bout of hyperinflation that led to the collapse of the local currency and its eventual scrapping in favour of the US dollar. The switch to the greenback immediately wiped out the value of Zimbabwe dollar-denominated investments, leaving thousands of pensioners destitute. The payment of compensation is a key step toward helping restore confidence across the retirement industry, said Grace Muradzikwa, head of...

October 24, 2023

NewsPension Management, savings, Zimbabwe

October 2023