September 2024
06Sep

UK and US pension risk transfer market to exceed £250bn in next three years

Legal & General has today released the latest edition of its Pension Risk Transfer (PRT) Monitor, which analyses industry trends and market outlooks in the UK and US. Findings from the report show: The UK PRT market has completed an estimated £20bn of buy-ins and buyouts in the year to date The US market experienced a record breaking first half, estimated at $26bn Both markets are on track for one of their largest years ever, with a significant increase in the number...

September 6, 2024
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06Sep

How European countries are reforming pensions to tackle rising costs, worker shortages

German measures to incentivize workers to retire later come as governments across Europe are turning to pension reforms to address worker shortages and ease the burden on their pension systems. Here is what other European countries are doing. FRANCE Almost half of all developed countries are expected to raise their official retirement age in the future, resulting in an average age of retirement of 66 years within the Organisation for Economic Co-operation and Development. Nevertheless, this is a politically divisive topic, which can have a...

September 6, 2024
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06Sep

Asia faces $74t retirement income shortfall

Emerging markets in Asia face a $74 trillion pension savings shortfall. Asia may face a retirement income shortfall as those over 60 are expected to make up 25% of Asia Pacific's population, a sharp increase from 14% in 2020, a report by McKinsey revealed. Emerging markets in Asia face a $74t pension savings shortfall, equating to about $50k per worker—11 times the average annual income. In countries like India and Indonesia, pensions cover only 8% of the population. McKinsey said to address the...

September 6, 2024
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05Sep

UK. State pension to rise by over £400 next year

The Treasury expects the new full state pension to be boosted above inflation by more than £400 a year in cash terms. The internal working calculations seen by the BBC reflect the near certainty that the state pension will be increased by average earnings figures released next week. This is due to the triple lock, which means the state pension increases every April by whatever number is highest out of inflation, the average UK wage increase, or 2.5%. The news comes as...

September 5, 2024
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05Sep

Climate, housing and pensions – the new partnership shaping the future of retirement

Pensions for Purpose and Independent Governance Group (IGG) announces IGG’s new role as a Community Partner with Pensions for Purpose.} The partnership furthers IGG’s ongoing commitment to address the challenges the pensions industry faces through systemic risks such as climate change, biodiversity loss and income inequality. This association and the wider Pensions for Purpose Community has been set up to accelerate the sharing of knowledge and investment in assets that benefit people and the planet. This is the first linking...

September 5, 2024
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05Sep

Working till your 70s — Japan’s prospective gift to the world

Japanese people are living longer, but with a struggling pension system and the highest inflation in decades, more are delaying retirement until their 70s or later to make ends meet. Michie Hino is one of them. She works at an elderly care home east of Tokyo, where she spends eight hours a day cleaning the facility and washing laundry even though she’s 77 years old herself. She’s part of the workforce supporting Japan’s growing ranks of aged and infirm. Her monthly...

September 5, 2024
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04Sep

US. Pressure Mounts on Public Pension Funds to Divest Chinese Investments

As the world revisits decades of globalization and diminishes the interdependence and integration of the world’s economies, and as interests of China and its allies become less aligned with the interests of the U.S., Europe and their blocs, many institutional investors are caught between generating alpha and legislators who want their states’ funds to be completely divested from the world’s second-largest economy. Geopolitical worries have led legislators in several states to mandate that their state pension funds divest from Chinese...

September 4, 2024
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04Sep

South Korea. Gov’t seeks to raise pension premium rate to 13% of income

The government is seeking to gradually increase the pension premium rate from the current 9 percent of income to 13 percent and the pension's income replacement rate from 40 percent to 42 percent through a major reform designed to restore public trust in the fund’s sustainability, particularly among young people. The reform plan, announced on Wednesday by the Ministry of Health and Welfare, includes measures to enhance fairness among different age groups by increasing pension premiums more gradually for younger...

September 4, 2024
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04Sep

In brief: EU strikes investment facilitation deal with Angola

The European Union has struck a first-ever deal with Angola to stimulate foreign investments needed to achieve sustainable development goals. The EU-Angola Sustainable Investment Facilitation Agreement (SIFA) aims to boost Angola’s appeal to foreign investors by making investment regulations more transparent, promoting the use of e-government for authorisations, and enhancing stakeholder involvement. Angola made up 8% of the EU’s foreign direct investment in Africa, or €21.7bn, in 2022. It invested €2.9bn in the EU in the same year, making it the country’s main trade and investment...

September 4, 2024
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04Sep

US. The Economic Implications Of Aging Boomers And Emerging Millennials

More than 4 million Baby Boomers, born 1946-1964, are reaching 65 each year through 2027, and they are exiting the labor force in droves. Meanwhile, the core labor force is growing at a snail’s pace. Since 2000, the population of 25- to 54-year-olds has grown by only 7%. How the U.S. manages these converging demographic trends will be a monumental challenge in the years ahead. With an aging population, the government will face higher obligations for medical and Social Security costs. There will be fewer workers...

September 4, 2024
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