October 2024
24Oct

Australian super funds face significant stability risks, says IMF

The International Monetary Fund has raised concerns about liquidity risks within Australia’s superannuation system due to a growing share of illiquid investments, such as private equity and credit. In its latest Global Financial Stability Report, the IMF warned that Australian super funds, which are increasingly allocating over 20 per cent of their assets to illiquid investments, face significant stability risks. “Australian superannuation funds are required to allow clients to switch between different investment options generally within three business days, even though...

October 24, 2024
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24Oct

What a Rapidly Aging World Population Means for Your Long-Term Portfolio

Global demographics are undergoing a profound transformation. As life expectancies grow and birth rates decline in many parts of the world, the proportion of the elderly population is increasing at an unprecedented rate. The World Health Organization (WHO) forecasts that by 2030, 1 in 6 people in the world will be aged 60 years or over. In 2030, the share of the global population aged 60 years and over will have increased from 1 billion in 2020 to 1.4 billion...

October 24, 2024
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23Oct

U.S. retirement preparedness is lacking: Morningstar

A new study from Morningstar focused on U.S. retirement readiness illustrates that while there has been some improvement over time, general retirement preparedness is lacking. Using data from the Federal Reserve’s Survey of Consumer Finances, Morningstar researchers analyzed data from 3,442 households before projecting 1,000 possible “life paths” for each of them. The company used savings rates, withdrawal patterns, job turnover and health care expenses to reach its conclusions. The authors previously published two separate papers on their findings earlier this year. The bottom line, they say, is...

October 23, 2024
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23Oct

New pension longevity model launched by Oliver Wyman and Mercer

Oliver Wyman and Mercer, businesses of Marsh McLennan, has launched a new pension risk transfer (PRT) longevity model that will enable pension plan sponsors, direct insurers and reinsurers to better price and manage longevity risk. Drawing on Mercer’s US longevity dataset of over one million pension lives, the model leverages the combined actuarial strength and longevity expertise of Oliver Wyman and Mercer. It also incorporates socioeconomic and demographic factors to generate a granular view of longevity risk. The underlying technology of the...

October 23, 2024
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23Oct

UK pensions minister pushes back launch of commercial pension dashboards

UK government pensions minister Emma Reynolds has announced that the its MoneyHelper Pension Dashboard service will be made available before commercial dashboards. Reynolds said it was too early to confirm a launch date to the public, with the DWP previously saying that the launch date will only be announced once they are assured most pension schemes have connected and the dashboards are working well. The Pension Dashboards Programme (PDP) has been given the task of developing the Pension Dashboards ecosystem and...

October 23, 2024
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23Oct

Ghana. SSNIT partners with academia to shape the future of pensions

The Social Security and National Insurance Trust (SSNIT) has organised a stakeholder engagement forum dubbed the SSNITposium, under the theme "Building a Knowledge-Based SSNIT Scheme", aimed at shaping the future of the SSNIT Scheme. The event brought together experts from academia, professional associations, and the pensions industry to share insights and foster collaboration on improving the Scheme. The Director-General of SSNIT, Mr. Kofi Osafo-Maafo, acknowledged the need for more public engagement and transparency regarding the Scheme. Referring to the International Labour Organization's...

October 23, 2024
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22Oct

BlackRock’s Fink says U.S. needs to discuss retirement system issues, national debt

The two biggest issues facing the U.S. that don’t get discussed enough are the nation’s retirement system and mounting federal government debt, according to BlackRock Chair and CEO Larry Fink. Millions of Americans don’t have retirement savings and are frightened that they won’t be able to save enough to retire with dignity, Fink said Oct. 21 at the Securities Industry and Financial Markets Association’s annual meeting in New York. "We as a country refuse to talk about, 'Do we have the adequate...

October 22, 2024
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22Oct

China state pension recoups losses, posts positive return in 2023

China’s national pension fund reversed its 2022 losses, achieving a 1% investment return in 2023 despite a domestic market downturn, thanks to a diversified portfolio. Though it ranked as the worst annual performer among state-owned investors globally, the National Social Security Fund (NSSF) maintained robust long-term investment performance, with a 10-year average annual return of 6.4%, standing out among Asian peers. In 2023, the national pension fund recorded an investment return of Rmb25 billion ($3.5 billion), or 0.96%, including a realised...

October 22, 2024
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22Oct

$1.5 Trillion U.K. Pension Fund Eyes Entry into Crypto Tokenization

Legal & General (L&G), a major UK-based pension and investment management firm, is considering entering the blockchain tokenization market. With $1.5 trillion in assets under management, the company is considering how it can package its Legal & General Investment Management (LGIM) liquidity funds in a tokenized manner. Tokenization is the process of transforming tangible assets such as property, natural resources such as oil and gas and even paintings into digital tokens. This makes it possible for the average investor to own...

October 22, 2024
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22Oct

Life expectancy may be reaching upper limits—for now

By William Mair     A paper published in Nature Aging earlier this month concluded that it’s unlikely that we will see significant leaps in human life expectancy this century. William Mair, professor of molecular metabolism at Harvard T.H. Chan School of Public Health, shares what researchers know about the biology of aging, the importance of improving health span, and the need to take moonshots. Q: What did the study find and what conclusions can we draw from it? A: The study looks back at advances in...

October 22, 2024
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