October 2024
18Oct

The world isn’t prepared for an aging population – but it’s actually a huge opportunity

By the year 2047, the global population will have more people in retirement age than young people The global population is aging, and no country, company or government is fully prepared to handle, and potentially benefit from, that demographic shift. The economic power wielded by older adults, already considerable in terms of their spending patterns, will only increase in the coming years, and the companies and regions that adapt to this growing market will be best positioned to succeed - and...

October 18, 2024
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17Oct

UK government faces “extra GBP100 million bill” for state pension rise

The UK government is facing an extra GBP100 million bill for next year's state pension increases following revised official figures published on Tuesday, according to a former pensions minister. Under the triple lock guarantee, the state pension increases every April in line with whichever is the highest of earnings growth in the year from May to July of the previous year, CPI (Consumer Prices Index) inflation in September of the previous year, or 2.5%. With inflation running at more subdued levels,...

October 17, 2024
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17Oct

US Is Sleepwalking Into an Economic Storm

By Daron Acemoglu   Daron Acemoglu, a professor at the Massachusetts Institute of Technology, received the Nobel in economic science this year. Inflation seems under control. The job market remains healthy. Wages, including at the bottom end of the scale, are rising. But this is just a lull. There is a storm approaching, and Americans are not prepared. Barreling toward us are three epochal changes poised to reshape the U.S. economy in coming years: an aging population, the rise of artificial intelligence and...

October 17, 2024
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17Oct

Big pension changes for divorce in South Africa

The new Pension Funds Amendment Act (PFAA) was recently signed into law, which will seriously impact divorce proceedings in South Africa. New retirement fund rules have changed how pensions are divided between divorced South Africans. “Before the PFAA it has been a well-established principle in our law that a divorce order is only enforceable against a pension fund as long as the member is still a member of the fund,” said Wright Rose-Innes. “Now, with the introduction of the PFAA and the...

October 17, 2024
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17Oct

Why the US lags globally in retirement security

The United States ranks 29th out of 48 countries Mercer and the CFA Institute evaluated for their global pension index published this week. That equates to a C-plus letter grade, with a peer group of the United Arab Emirates, Kazakhstan, Hong Kong, Spain, Colombia, and Saudi Arabia. All of those countries have systems with “some good features but also ha[ving] major risks and/or shortcomings that should be addressed,” the report stated. “Without these improvements, its efficacy and/or long-term sustainability can be...

October 17, 2024
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17Oct

Can today’s pensions survive tomorrow’s longer lifespans?

The 2024 Mercer CFA Institute Global Pension Index (MCGPI) reveals the ongoing need for retirement system improvements globally, driven by declining birth rates and increasing longevity. The 16th annual report, released by Mercer, a business of Marsh McLennan, and the CFA Institute, highlights how pension systems are adapting. The Netherlands remains the top-performing retirement income system worldwide, with Iceland in second place and Denmark in third. Pat Tomlinson, Mercer’s president and CEO, emphasized the growing importance of retirement income systems as...

October 17, 2024
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16Oct

Higher Contributions, Net Replacement Rates Make World’s Best Pensions

Which countries have the best retirement systems? The Netherlands, Iceland and Denmark are the top three, according to the 2024 Mercer CFA Institute Global Pension Index. The top three were unchanged from last year’s report. The 16th annual survey benchmarked and compared the retirement systems of 46 countries, with a secondary purpose of highlighting shortcomings in each system and suggesting areas of reform. Among the characteristics present in the top-rated plans, the researchers identified: A public pension for the aged poor of at...

October 16, 2024
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16Oct

US aging population is on a collision course with a fragile healthcare supply chain

As Americans age, the need for a steady, reliable flow of healthcare supplies will only grow Hurricane Helene, which devastated swaths of the southeastern U.S. and caused the deaths of hundreds of people, also uncovered a quieter crisis and preparedness gap that could potentially shake the U.S. healthcare system and affect the lives of millions. One of the country's largest manufacturers of intravenous bags, North Cove, N.C.-based Baxter International (BAX) - which is responsible for 60% of the nation's supply of...

October 16, 2024
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16Oct

Kenya. Pension payments fall by Sh23 billion as government faces cash crunch

Pension payments to retired public service workers fell short by Sh23.65 billion in the first quarter of the Financial Year 2024-2025, highlighting a growing public cash crisis amid declining tax revenues. The National Treasury's Pensions Department processed Sh32.14 billion in payments during this period, reflecting a modest increase of 4.23 per cent compared to Sh30.83 billion from the previous year. However, this amount was significantly below the prorated target of Sh55.60 billion, based on an annual goal of Sh223.15 billion due...

October 16, 2024
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16Oct

Record-Breaking €1 Billion: Brazilians Boost Portugal’s Pension Fund Like Never Before!

In a remarkable achievement, Brazilian workers in Portugal contributed over 1 billion euros to the country’s social security system in 2023. This significant increase of 57% compared to 2022 highlights the vital role immigrants play in sustaining Portugal’s economy. But what does this mean for the future of labor in Portugal? Why Are Brazilian Workers Essential to Portugal’s Social Security System? Brazilian immigrants are becoming indispensable to Portugal’s economy. With local workers aging and fewer young people entering the labor market, how can...

October 16, 2024
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