October 2024
07Oct

UK. Royal Mail launches collective defined contribution pension plan

Royal Mail has launched a collective defined contribution (CDC) pension plan to provide its more than 100,000 employees with a cash lump sum and an income in retirement. Along with the Communications Workers Union (CWU) and Unite CMA, the employer designed and implemented a pension arrangement for its workforce that was affordable for itself and its employees. Every employee with at least one year of service is eligible to join, with the majority joining automatically. The plan pools members’ contributions and provides staff...

October 7, 2024
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07Oct

Ghana. Authority to educate on pensions in churches.

The National Pensions Regulatory Authority (NPRA) has marked what they call 'Pension Sunday'—a special day devoted to enlightening church congregations and the broader public about the significance of investing in their future through pension schemes. In recent years, the NPRA, the regulatory body overseeing Ghana's three-tier pension system, has significantly intensified its advocacy efforts, particularly targeting the informal sector. "Our goal is simple," stressed Mr. John Mbroh, Chief Executive Officer of the NPRA, "we want everyone, especially those in the informal...

October 7, 2024
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07Oct

US. People delaying retirement to get Medicare. Is it worth it?

I started my career with ING. After five years, I was convinced I would finish my career there. They spun off in the U.S. and, after year six, I found a new home. After five years at my new firm, and after becoming an owner, I was convinced I would finish my career there. In year eight, I sold my shares back to start my own firm. The point is that things don’t always go as planned. According to the Employee...

October 7, 2024
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07Oct

UK. Four New Firms Join the Pension Dashboard Operators Coalition to Reconnect People With Their Savings

The UK Pensions Dashboard Programme (PDP), a project aiming to create the infrastructure required to help over 16 million people plan for retirement and connect with lost pension pots all in one place, has been hit with delay after delay. In an effort to help launch commercial pensions dashboards for consumers more quickly, four new firms have joined the Pension Dashboard Operators Coalition, the industry coalition of potential operators of commercial pensions dashboards. Fidelity International, Mercer, Penny and Pension Lab become the latest firms to join the...

October 7, 2024
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07Oct

China sovereign wealth fund registers benchmark-beating return

China Investment Corporation (CIC) delivered a benchmark-beating return in 2023 on the back of putting greater emphasis on private assets such as private credits and green energy investments. CIC posted 6.57% of ten-year annualised net return as of year-end 2023, outperforming its long-term performance benchmark by 31 basis points, the sovereign wealth fund says in its annual report. The fund’s cumulative annualised net return was 6.23% since its inception in 2007. CIC says the global macroeconomic paradigm shift continued to evolve in...

October 7, 2024
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04Oct

U.S. corporate pension fund surpluses grew again in September

U.S. corporate pension funding ratios remained well above 100% at the end of September as investment returns continue to outpace rising liability values, according to two new reports. First, Wilshire Advisors estimated the aggregate funding ratio of U.S. corporate plans reached 101.6% as of Sept. 30, an increase of 0.3 percentage points above the 101.3% funding ratio newly estimated by the firm as of Aug. 31. "September's funded status improved due to continued increases in asset values, with most asset classes...

October 4, 2024
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04Oct

China: Gradual increase to statutory retirement age

Employer Action Code: Act The government has approved legislation to increase the social security statutory retirement age by three to five years gradually over a 15-year period starting January 1, 2025. Key details Over the 15-year period starting January 1, 2025, normal retirement age (NRA) will gradually increase: From age 60 to 63 for men From age 55 to 58 for women in salaried positions From age 50 to 55 for women factory workers These are the first increases to NRA since the...

October 4, 2024
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04Oct

UK. Frozen state pensions: thousands of expats receive just £3,000 a year

Thousands of retired Britons living abroad receive just £3,000 on average each year from a “frozen state pension” - £7,000 less than retirees living in the UK - according to new analysis. While British pensioners that move abroad still receive a UK state pension, only some of them benefit from the triple lock. This uprates the state pension each year in line with earnings, inflation or 2.5%, whichever is higher. The new full state pension is likely to increase by more than £400 next April,...

October 4, 2024
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04Oct

US. Who’s left out of retirement savings system?

The tax-advantaged retirement savings system in the United States is one of the most effective wealth-building programs in the world. Too many working Americans, however, are left out of it. Their access to employer-provided retirement plans is limited, and the incentives in the retirement system fail to encourage lower-income workers to save. Just how many Americans are poorly served by the retirement savings system today? It is a deceptively hard question to answer, in part because there are no comprehensive,...

October 4, 2024
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04Oct

Fidelity International says fund sales surged on interest rate cuts, China market rally

Lower interest rates and a rally in China stocks have helped drive sales of investment fund products offered by Fidelity International, a senior executive said. “Following [the People’s Bank of China’s] stimulus package, China’s stock markets have been performing strongly, and we believe there is some room to grow,” said Charlotte Chan, the head of Fidelity’s Hong Kong office, in an interview. “Together with the Fed’s rate cutting cycle, this motivates investors to look at their allocations, especially those who...

October 4, 2024
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