August 2024
06Aug

UK. Retirees seeking guaranteed income from pensions warned annuity rates set to fall

Now might be a good time buy an annuity for those savers looking for the safety of some guaranteed income in retirement – as annuity rates look set to fall. After the Bank of England cut the benchmark interest rate on 1 August, bets have snowballed that global central banks will have to slash rates as jobs market and recession fears in the US have suddenly mounted. Henrietta Grimston, Financial Planning Director at wealth management firm Evelyn Partners,observes: ‘That is sending...

August 6, 2024
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05Aug

These are the countries with the lowest retirement ages in the world

China has made headlines by announcing it intends to raise its retirement age, which has long been the lowest in the world. Australia may not be one of them, but some countries around the world still have incredibly low retirement ages. Interestingly, several have different age specifications for men and women, Read on to see the nations with some of the lowest retirement ages in the world. Australia For reference, Australia has one of the highest retirement ages in the world, at age 67.France Last...

August 5, 2024
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05Aug

Almost half of those who retire at 65 could run out of money

The crisis is heightened for those without access to a 401(k), new research predicts Almost half of American households will run short of money in retirement if they stop working at 65, new research predicts, raising concerns about the financial health of the country as people live longer and have greater responsibility for their own retirement savings. That research, from the Morningstar Center for Retirement & Policy Studies, came from using a new simulation tool that looks at individual characteristics, healthcare...

August 5, 2024
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05Aug

China plans to raise retirement age. Could it happen in Canada?

China is the latest in a slew of countries planning to gradually raise the statutory retirement age as an aging world population is forcing governments to reform their pension plans. Delaying retirement also “makes sense” and could have “a lot of benefits” in other countries, including Canada as the country grapples with labour shortages and a record low fertility rate, experts say. But could it happen? There is no mandated retirement age in Canada, but the standard age to start receiving public pensions is...

August 5, 2024
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05Aug

US. What the longevity economy means and why it’s important

Q. I have heard a lot about the longevity economy and don’t fully understand what it means. Can you explain it and why is it important? Many thanks. N.D. Let’s begin with the term “longevity.” Often it is used as a substitute for aging, yet the words are different from one another. Aging can be defined as a progressive decline to maintain one’s biological and physiological functioning. Longevity does not include decline. It is the average lifespan under ideal conditions suggesting how long we could live if all...

August 5, 2024
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05Aug

The three phases of retirement and how to maintain your quality of life

As you approach retirement, the third phase of your life after childhood and your working years, planning for financial security becomes crucial, especially to protect the wealth you built and maintain your lifestyle for the rest of your life. John Kennedy, director and regional head for the Western Cape at Citadel, says strategic financial management in retirement is extremely important, especially considering that this phase can be divided into three distinct periods, each requiring different financial approaches. A poll published on...

August 5, 2024
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02Aug

US. Nearly half of Americans projected to face funding shortfalls in retirement — Morningstar

Almost half of Americans (45%) will experience funding shortfalls in retirement, with single females most at risk, according to a new report from Morningstar Retirement. More than half of single females (55%) are expected to run short of money compared with 41% of couples and 40% of single males, the report found. The report also uncovered significant racial differences, with Hispanic and non-Hispanic Black Americans at greater risk of funding shortfalls than non-Hispanic whites and other non-Hispanics. More than 3 in...

August 2, 2024
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02Aug

UK. DWP data shows reduction in pension saver opt outs

The number of those opting out of workplace pensions has reduced in the last year, while the amount saved has not increased, data from the Department for Work and Pensions (DWP) has shown. The latest update for workplace pensions from the DWP showed eligible employee participation in workplace pension schemes has reached 88% - significantly higher than in 2012, when this was measured at 55%. The data also showed workplace pension participation remained broadly the same as that from 2019 to 2022. In...

August 2, 2024
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02Aug

Japan. Pension fund dumps ESG benchmark for passive investments

The Government Pension Investment Fund (GPIF), one of the largest managers of retirement savings in the world, has dumped the ESG index it had been using for its passive investments in previous years. In March, the fund said it has decided to change its benchmark from the MSCI Japan ESG Select Leaders Index to MSCI Nihonkabu ESG Select Leaders Index. This change means: the new benchmark excludes REIT there are 516 shares in the new benchmark compared to 239 shares in...

August 2, 2024
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01Aug

Pension funds should protect our future, not destroy it

We live in a world where people’s movements for a healthy environment, with clean air to breathe and fresh water to drink, are vital and unstoppable. Sadly, fossil fuel companies are using all their might to continue extracting and polluting – harming communities, nature and the climate, all for the short-term financial gains of a few. But, as crises collide, calls for governments to hold corporations to account are growing, together with expectations that businesses must avoid harming people and...

August 1, 2024
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