February 2025
18Feb

Lithuania’s planned second pillar reforms alarm pensions industry

Proposed changes to Lithuania’s quasi-mandatory second pillar pensions system have been widely criticised as a threat to the system as a whole. The government – a coalition led by the centre-left Social Democrats – said the aim is to increase the attractiveness and flexibility of the second pillar, ensure the voluntary involvement of participants and employers, and balance financial incentives. At present, there is automatic enrolment, with a limited ability to opt out. The changes include abolishing auto-enrolment, instead encouraging the public to...

February 18, 2025
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18Feb

Bangladesh. Informal economy under stress

In the bustling lanes of Dhaka's Karwan Bazar, Rina Begum, a 42-year-old street vendor, arranges fresh vegetables on her wooden cart before sunrise. Her business-unregistered, untaxed, and absent from official GDP reports-is part of Bangladesh's informal economy, a vast network of small-scale, unregulated ventures that employ millions. Globally, the informal sector accounts for over 60 per cent of employment; in Bangladesh, it sustains 85 per cent of the workforce, from rickshaw pullers to home-based garment workers. Yet, as inflation...

February 18, 2025
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17Feb

UK. The growing problem of small pension pots and why consolidation is key to better retirement savings

Urgent reform is needed to ensure individuals can manage their retirement savings more effectively. The IFS report identifies small ‘deferred’ pension pots as a major issue in the UK’s pension landscape. Nearly 20 million defined contribution (DC) pension pots worth under £10,000 are no longer being contributed to, with 12.1 million of these containing less than £1,000 (‘micro pots’). Such fragmentation complicates retirement planning for savers and increases administrative costs across the pensions industry. This growing issue not only creates unnecessary...

February 17, 2025
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17Feb

Living Beyond Age 100: A Possibility With Financial Impact

Living beyond age 100 might sound like the stuff of science fiction, but think about how many once-impossible ideas are now part of everyday life. Air travel, landing on the moon, mobile phones and even the ability to map our DNA were unthinkable not long ago. Now, breakthroughs in medicine and technology are nudging us closer to the possibility of living significantly longer, healthier lives. While immortality isn’t on the table just yet, the idea of living well beyond 100...

February 17, 2025
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17Feb

Kenya. Tax reforms usher in new era of retirement security

Kenyans can now contribute more towards their pension without significantly reducing their disposable income following the passing of the Tax Laws (Amendment) Act 2024. The new reforms, which came into effect in December last year, signify a new era of retirement security with a focus on financial stability and healthcare planning, as discussed at a pension stakeholder workshop in Nairobi over the weekend. According to John Keah, the Assistant Director of Market Conduct and Industry Development at the Retirement Benefits Authority...

February 17, 2025
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17Feb

Over 20% of Bulgaria’s Pensioners Cannot Afford Basic Necessities

According to Eurostat data, 22.4% of Bulgarians aged 65 and older experience severe material deprivation, meaning they are unable to afford at least seven out of thirteen basic items necessary for a decent quality of life. These essentials include things like replacing worn-out clothes, having some personal spending money each week, renewing old furniture, going on an annual vacation, or handling unexpected expenses. Only Romania has a higher percentage of pensioners in such deprivation, with 23.7% affected. On average, however,...

February 17, 2025
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17Feb

Singapore. Rethinking ageing: From caregiving to community and contribution

Caring for an elderly loved one might not be on your radar right now, but it’s a role many of us will take on eventually. “Almost all of us in Singapore will be, or already are, a caregiver,” Mr Dinesh Vasu Dash, CEO of the Agency for Integrated Care (AIC), observed. When his childless, widowed paternal uncle, now in his mid-80s, was hospitalised with a severe bout of influenza A, it was Mr Dinesh’s parents – both in their 70s –...

February 17, 2025
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14Feb

U.S. ETF assets reach record $10.7 trillion in January

Assets in the U.S. exchange-traded fund industry reached a new record of about $10.7 trillion at the end of January, surpassing the prior record of $10.6 trillion at the end of November, according to a Feb. 13 news release by independent research and consultancy firm ETFGI. In January, the U.S. ETF industry amassed net inflows of $90.3 billion, the highest figure ever recorded, well ahead of the previous monthly record of $78.8 billion in January 2018. Vanguard Group led with the highest...

February 14, 2025
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14Feb

Pensions vs earnings across Europe: The highest and lowest comparisons

Pensions in the EU amount to some three-fifths of late-career work income. In many European countries, this rate falls below 50%, making it increasingly challenging for pensioners to maintain a decent standard of living. In many European countries, pension income is significantly lower than pre-retirement earnings from work. This makes it difficult for many older people to maintain their standard of living after retirement. Nearly one in six pensioners are at the risk-of-poverty in the EU, with the rate increasing...

February 14, 2025
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14Feb

Canada. CPP Investments nearing $700 billion

The Canada Pension Plan Investment Board (CPP Investments) reported $699.6 billion in net assets, as of Dec. 31, 2024. The figure represents a $24.5-billion rise relative to the previous quarter. The pension fund manager earned $26 billion in net income, and delivered $1.5 billion in member payments. “Returns were strong this quarter,” said John Graham, president & CEO of CPP Investments in a news release. “Our investment teams were very active with more than 40 transactions signed or closed in...

February 14, 2025
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