October 2024

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...

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...

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...

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...

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...

US. Over 90% of corporations with derisking goals to shed pension liabilities — MetLife

More than 90% of U.S. corporations with defined benefit plans that have derisking goals plan to transfer all their liabilities in an average of just under four years, according to a new poll conducted by MetLife. In the insurer’s 2024 Pension Risk Transfer Poll, 93% of respondents said they intend to completely offload all of their pension liabilities, up from 89% that expressed that sentiment a year ago. Among that population, they plan to do so in an average of 3.8...

Pension funds biggest investors in UK’s £10bn social impact investment market

Pension funds are the largest investors in the UK’s social impact investment market, according to the latest annual market sizing report from Better Society Capital (BSC). The report reveals that the sector grew to £10bn (€11.9bn) last year, marking a 7% increase compared to 2022. In 2023, investment by pension funds represented 21% of the country’s total social impact investment market, with most of their funds being directed towards social and affordable housing, according to BSC. Endowments and charities were the second biggest...

How many Canadians are gig workers?

More than one in five (22%) Canadians are participating in gig work of various kinds across the country. That equates to about 7.3 million adults finding work outside of regular employment. And they are doing it for a variety of reasons, reports Securian Canada, with more than half (57%) — or roughly four million people — relying on this type of work to supplement their primary income. Nearly three-quarters (73%) of all gig workers are either employed full-time or part-time outside...

French lawmakers weigh political risk of curbing boomers’ costly pensions

 France's government has put the country's explosive pensions issue back on the agenda as it seeks to reduce a gaping budget hole. But this time, it wants pensioners to contribute to belt-tightening efforts themselves. It also wants lawmakers used to pandering to older voters to back it. Economists and analysts say that if France really wants to tackle its bloated public spending, the baby-boom generation - those born between 1946 and 1964 - must take a hit to their pensions,...

New ILO report highlights urgent need for improved labour and social protection for domestic workers in ASEAN

A new report by the International Labour Organization (ILO) highlights the critical need to improve labour and social protection for domestic workers across the 10-member Association of Southeast Nations (ASEAN) region. The report entitled Labour rights and social protection coverage for domestic workers in ASEAN  finds that despite their essential role in supporting households and economies, domestic workers, many of whom are women and migrants face significant gaps in protections that affect their well-being and economic security. There are about 38.3 million domestic...