November 2024
15Nov

How Mexico’s reformed pension system is improving workers’ retirement security

Earlier this year, Mexico’s senate approved the creation of a new pension fund to help provide more retirement security for low-income citizens. The reform aims to ensure pensioners receive 100 per cent of their last monthly salary up to roughly 16,777 Mexican pesos (US$975), which is the average monthly wage for workers affiliated with the Mexican Social Security Institute. “Congress approved this change to the pension system, which basically established a new welfare pension fund,” says Pedro Trejo, retirement director at...

November 15, 2024
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15Nov

US. October Sees Gain in Corporate Pension Funded Status

An increase in discount rates helped corporate pensions by offsetting both a decline in asset values and weak investment returns. The funded ratios of corporate pension plans in the U.S. mostly improved in October, according to numerous trackers, continuing a near-perfect streak of month-over-month funded status improvement for more than a year. Despite weaker investment returns, most trackers found that declines in asset values were offset by increases in the discount rates used to value pension liabilities. According to Mercer,...

November 15, 2024
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15Nov

UK. What will Rachel Reeves’s retirement scheme changes mean for pensions?

The chancellor has announced plans to merge local government retirement schemes into eight Canada-style ‘megafunds’ Rachel Reeves has announced plans to merge local government retirement schemes into eight Canada-style “megafunds” in what the Treasury claims will be part of the biggest reform of the UK pension market in decades. So what will the changes, announced as part of the chancellor’s inaugural Mansion House speech on Thursday, actually mean for UK pensions and what can they achieve? What is Reeves planning? The chancellor plans...

November 15, 2024
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14Nov

UK. Reeves in radical pension shake-up to boost growth

Chancellor Rachel Reeves is planning what she calls the "biggest pension reform in decades" in an attempt to boost economic growth. The government wants to merge the UK's 86 council pension schemes into a handful of "pension megafunds". It is hoped the changes will lead to billions of pounds being invested in the UK in areas such as energy infrastructure, tech start-ups and public services. Reeves told the BBC that UK public sector pension funds in their current form were not big...

November 14, 2024
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14Nov

China’s economy adapts to serve older people

One person's aging is another's opportunity. In China, companies and services are adapting to serve what demographers call the silver economy - hundreds of millions of people over the age of 60. NPR's Emily Feng has this report. (SOUNDBITE OF MUSIC) EMILY FENG, BYLINE: This is a drumming club in southwestern China for people over 65 years of age only. They've occupied a large warehouse base and filled it with rows of drums and disco lights. ZHU NANFEI: (Speaking Mandarin). FENG: Zhu Nanfei,...

November 14, 2024
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14Nov

Four Questions to Narrow the Field of Retirement Income Solutions

The ranks of retirement income solutions are already impressive and continue to grow as participants’ needs evolve and providers innovate. It may seem like a tall task for defined contribution (DC) plan sponsors to home in on the solutions that warrant a closer look—even as the growing demand for lifetime income adds urgency to the effort. We think working through four critical questions, which address aspects such as the location, income certainty and accessibility of solutions, can help bring the...

November 14, 2024
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14Nov

UK. HMRC issues National Insurance act fast warning to boost State Pension before cut-off date

The deadline for those impacted by new State Pension transitional arrangements is fast approaching HM Revenue and Customs bosses have issued a message to people to act ahead of a looming deadline. HMRC officials have disclosed that more than 10,000 payments, amounting to £12.5 million, have been made through the new digital service to boost individuals' State Pensions since its launch in April. With less than six months left to address any National Insurance (NI) record gaps dating back to...

November 14, 2024
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14Nov

Brazil. Military pensions post largest deficit among retirement systems

The segment is also the one with the most retirement benefits, according to a TCU report Targeted by the fiscal reforms under consideration by the government, Brazil’s military pension system (SPSMFA) recorded a deficit of R$49.73 billion last year, placing it as less sustainable than the General Social Security System (RGPS) and generating a per capita deficit 17 times higher. This data appears in a separate report by Walton Alencar of the Federal Court of Accounts (TCU), presented during the review...

November 14, 2024
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13Nov

Danish pension fund pushes for Japan, Korea to abandon coal

PensionDanmark, Denmark’s $51 billion pension fund, is calling on Japan and South Korea to completely wean themselves off coal-generated power by 2030. “We have decided not to finance new coal power planned after 2023 anywhere in the world," Jan Kæraa Rasmussen, head of ESG and sustainability at PensionDanmark told AsianInvestor. "Our ask for utilities in developed countries, including in Japan and South Korea, is that they present comprehensive plans to phase out coal as soon as possible. And that should be closer...

November 13, 2024
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13Nov

UK. Pensions to be key focus of Chancellor’s first Mansion House speech

Pensions are expected to be a key focus of Rachel Reeves’s first Mansion House Speech, due to be delivered this Thursday. Many in the industry are expecting the new Chancellor to set out bold pension reforms, setting out how DC and DB funds will be used to boost investment into UK infrastructure and private business over the next five years. This Mansion House speech is a key economic speech given by the Chancellor to senior City and banking representatives, outlining broad policy...

November 13, 2024
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