October 2024
16Oct

Morocco faces challenges of corruption and reform of pension system

The Government Action Observatory, affiliated with Al-Hayat Centre for Civil Society Development in Morocco, has warned that one of the most prominent challenges facing the government of Prime Minister Aziz Akhannouch in its fourth year is that of reforming the pension system, which is at risk of bankruptcy by 2028. Corruption is also one of the pressing issues, as the cost of this affliction in Morocco exceeds 50 billion dirhams annually, which hinders economic growth and affects efforts to improve...

October 16, 2024
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15Oct

UK. Govt launches National Wealth Fund to drive pension fund investment

The government has officially launched the National Wealth Fund and announced reforms to other public institutions to encourage additional pension fund investment into high-growth UK companies. The UK Infrastructure Bank is to be overhauled and rebranded as the National Wealth Fund. The announcement was made by chancellor Rachel Reeves at the government’s International Investment Summit in London yesterday (14 October). The fund is to receive £27.8bn and an expanded investment remit to support the government’s new industrial strategy, also announced yesterday. Its remit...

October 15, 2024
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15Oct

US. Most Corporate Pensions Saw Funding Dip in September

U.S. corporate pension funding ratios dipped slightly in September, as falling yields drove liabilities higher than could be offset by strong gains in equities, according to most of the country’s largest plan consultants. The consensus of slight declines in pension funding status comes after a month in which the Federal Reserve cut interest rates for the first time since the COVID-19 pandemic and its campaign of hikes to combat inflation, which began in 2022. Pension liabilities, driven in part by market interest...

October 15, 2024
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15Oct

UK. PASA launches pensions dashboards toolkit

PASA today published the first content in its new ‘Dashboards Toolkit’. The Toolkit will be updated over time and the first releases include: A questionnaire for trustees to issue to their AVC providers in advance of connecting their scheme AVCs to dashboards A checklist and suggested list of activities for administrators to connect to and maintain AVC data A list of AVC providers and their connection methods Geraldine Brassett, Chair of the PASA Dashboards Scheme Configuration sub-group, commented: “PASA has...

October 15, 2024
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15Oct

From ageing to active living — working through old age in EU

Ausra Linkuviene, a retired typesetting designer from Lithuania, represents a growing trend in Europe, where retirement no longer means the end of a working career. Years after retiring, 67-year-old Austra has continued working. Supported by both her pension and salary, she can travel every year. Admired by her younger colleagues, she sees no reason to leave her profession, she told Xinhua. Her story reflects a larger demographic shift across Europe. By 2050, nearly 30 percent of the European Union (EU) population...

October 15, 2024
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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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