October 2024
14Oct

Biggest US public pension fund Calpers invests in UK’s Octopus Energy

The largest public pension scheme in the US has invested in Octopus Energy, highlighting international interest in the fast-growing UK power company. Calpers, which oversees the pensions of public workers in California and has about $500bn of assets under management, invested in the private company this year as part of a push into climate-related assets, Calpers confirmed in response to a query from the Financial Times. It made its investment in May alongside Australian pension fund Aware Super. Together the two...

October 14, 2024
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14Oct

30% of young Koreans support abolition of national pension system: poll

About 30 percent of Koreans, aged between 18 and 49, support the abolition of the national pension system amid waning public trust in the fund, a recent poll shows. According to a survey, released on Sunday, people in those age groups share a distrust of the sustainability of the fund, which is expected to be depleted around 30 years in the future. Asked to choose one of four options to improve its financial soundness — increasing the premium rate, focusing on...

October 14, 2024
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14Oct

Europe’s population crisis could shave 4% off its GDP by 2040, Morgan Stanley warns, and the options to solve it aren’t good

Europe’s demographic challenges are becoming a ticking time bomb for the region’s economy, with Morgan Stanley delivering a grim prediction for its effects on GDP. Morgan Stanley says Europe’s aging population could shave 4% off the Eurozone’s GDP by 2040 as people live longer and birth rates fall. The bank projects a significant loss of GDP based on predictions that Europe’s working-age population will shrink by 6.5% by 2040, due to a reduction in the number of working-age people producing output...

October 14, 2024
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14Oct

US. What Does Inflation’s New Normal Mean for Public Pension Funds?

September’s Federal Reserve interest rate cut was meant to signal a win in the battle against inflation. With the highest inflationary peak in decades behind us, there was palpable relief at the idea of rates coming down. That may be especially true for public pension plan participants and plan sponsors. Over the past few years, more retiree groups have pushed for cost-of-living adjustments for their retirement benefits, as inflation eroded pension benefits. Some have been successful at getting ad hoc...

October 14, 2024
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14Oct

Deep Dive: China raises retirement ages as birth rate drops and ageing population grows

Deep Dive delves into hot issues in Hong Kong and mainland China. Our easy-to-read articles provide context to grasp what’s happening, while our questions help you craft informed responses. Check sample answers at the end of the page. News: China raises retirement age as it battles economic slump Country’s top legislative body announced the move as a way to deal with its ageing population of workers More people are set to retire than to enter the workforce, putting China’s pension...

October 14, 2024
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11Oct

Five insights on pension reforms for the 21st century

Globally, the number of people aged 65 or older is increasing as a share of the population, which raises the question: will these older adults receive a predictable and adequate pensions? That question is one that has enormous consequences for old-age poverty, labor markets, gender equity, and the macro economies of emerging market economies, which need to rapidly rethink pension needs and solvency as more people are living longer. Designing pension reform in developing countries Sharing lessons learned is vital for...

October 11, 2024
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11Oct

India launches pension system for all ages, infancy to 70

NPS Vatsalya allows accounts to be opened for children. India’s recent launch of the National Pension System (NPS) Vatsalya aims to expand pension coverage to a broader demographic, allowing individuals from infancy to 70 years old to participate. With its flexibility and portability, NPS Vatsalya allows accounts opened for children to be seamlessly integrated into workplace pensions as they enter the workforce. The flexibility of the NPS remains a key feature, with subscribers having control over their contributions, pension fund choices, and...

October 11, 2024
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11Oct

UK. Why even at 20 you should care about pension changes

There is growing speculation that the way pensions are taxed could be changed in the Budget. Chancellor Rachel Reeves says she needs to find £22bn and some experts say she could change the system on workplace or private pensions to find some of this money. This is separate from another debate about the state pension. There are a number of options which could affect workers getting their first job, those already working, all the way up to those in retirement. This...

October 11, 2024
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10Oct

UK. People have less than six months to make a vital pension change

People have less than six months left to fill gaps in their national insurance (NI) record from 2006 to maximise their state pension. More than 10,000 payments worth £12.5 million have already been made through a new digital service to boost people’s state pensions since it launched in April, HM Revenue & Customs (HMRC) has revealed. The service lets people check for gaps in their NI record, calculate if making a payment would increase their state pension, and then make...

October 10, 2024
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10Oct

Hong Kong launches e-platform for pension scheme

The Mandatory Provident Fund Schemes Authority (‘MPFA’) has commenced a major overhaul of the Hong Kong pensions system with the launch of the eMPF Platform in June 2024. The Mandatory Provident Fund (MPF) is Hong Kong’s pension scheme, which involves compulsory contributions to privately managed fund plans. The eMPF Platform is a centralised electronic platform designed to streamline MPF administration for employers, employees and MPF trustees. This is the largest reform of the MPF system since its inception in December 2000. What is the eMPF Platform? The eMPF Platform is an electronic...

October 10, 2024
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