May 2024

Pensions in Europe: Which countries are best and worst for retirement?

There are significant pension disparities across Europe. Euronews Business has found a strong positive correlation between financial confidence in retirement and the level of monthly pensions. Earnings-related pensions overwhelmingly constitute the primary source of income for Europeans aged 65 and older. However, less than half of EU consumers are confident that they will have enough money to live comfortably throughout their retirement. In several countries, this confidence level falls to 30% or even less. This raises concerns about pension adequacy. Protecting...

Half of UK adults unaware of state pension age

Nearly half (48 per cent) of UK adults under state pension age do not know when they will receive the state pension. Research by AJ Bell found that 63 per cent of those aged 18-34 did not know when they would receive the state pension, with 54 per cent of 35-49-year-olds also being unaware. Some 28 per cent of those aged 50-64 also admitted not knowing the state pension age. The research also revealed that 72 per cent of UK adults expect their pension...

Switzerland: Social security changes come into force, with implications for pension plans

Employer Action Code: Act Switzerland’s AHV/AVS 21 law, which was approved by parliament and then passed by public referendum in 2022, took effect January 1, 2024. Among other things, the law will increase the age for normal retirement (now called the “reference age”) for women under the social security AHV/AVS[1] retirement program as well as for pension plans that provide the mandatory BVG/LPP[2] retirement benefits. Key details The reference age for women (currently age 64) under the AHV/AVS and under BVG/LPP pension...

Pension managers back climate group after high-profile US exits

 Asset owners overseeing $4.6 trillion have signed a statement throwing their support behind the Climate Action 100+ investor group after several high-profile Wall Street investors left the global initiative. Signatories included the California State Teachers' Retirement System (CalSTRS) and California Public Employees Retirement System pension managers, as well as more than 40 others from countries including Britain, Canada and Sweden. In the statement on CalSTRS' website, the groups, many of which employ asset managers to invest in markets on their behalf,...

Entergy to Transfer $1.2B in Pension Liabilities

In a busy year for pension risk transfer transactions, energy provider Entergy will transfer $1.157 billion in pension liabilities to Metropolitan Life Insurance Company, Entergy announced in an 8-K SEC filing on May 24. Entergy, which provides electricity to roughly three million customers in Arkansas, Louisiana, Mississippi and Texas, entered the agreement with MetLife on May 23, which will cover 3,447 retirees and other beneficiates who received benefit payments on or before March 1, 2024. Entergy’s retirees and beneficiaries will continue to receive...

This retirement planning gap is ‘hidden in plain sight,’ Harvard professor says

For many people, retirement planning is all about money: how to invest, how much to save, when to claim Social Security, how to best withdraw from accounts. Finances in retirement are an acute fear. About 2 in 3 people worry more about running out of money than about death, according to a recent poll by Allianz Life. Yet, there's a notable lack of attention and concern given to the social aspect of retirement, experts said. It's a facet of retirement planning that's almost "hidden in plain sight," said Robert...

Generational AI: Digital inclusion for aging populations

As artificial intelligence (AI) applications become ubiquitous in products and services, it is more important than ever to ensure that they are appropriately aligned for positive use and avoid exacerbating social exclusions for an aging population. Based on discussions with leaders in equity, AI, and aging, and additional research, Generational AI: Digital inclusion for aging populations outlines the unique considerations for older adults within the AI lifecycle, barriers to digital inclusion that older adults experience regarding AI and suggested near- and...

US. Pension risk transfer premiums rise in April — Milliman

U.S. pension risk transfer premiums among the most competitive bidding processes rose in April, a study by actuarial and consulting firm Milliman showed. The estimated average premium among the most competitive rates was 100.9% as of April 30, up from 100.3% a month earlier, according to a report about the Milliman Pension Buyout index. Milliman said the jump in competitive rates came from average accounting discount rates that increased by 45 basis points, while annuity purchase rates increased by 36 basis...

The world’s largest pension fund may be running dry

A population equaling the size of the entire U.S. will retire from China's workforce by 2035, and the country isn't reproducing sufficiently to mend its fraying social safety net Fifty-eight-year-old Li Zhong, a traditional-Chinese-medicine salesman, retires in two years and doesn't fret about his pension. It's his daughter he is worried about. He recently took out a mortgage to help her buy a house in a Shanghai suburb. China's housing bubble burst in 2021, and prices are at their lowest levels...

What is the gig economy and how will it be affected by Uber’s announcement?

Uber's announcement of basic employment rights for its drivers comes after a long-running court battle that could force a shake-up in the so-called gig economy. What is the gig economy? The term describes a way of working where work is assigned on a short-term or job-by-job basis via platforms such as Uber, a taxi app, Deliveroo, a takeaway food service, or courier companies such as Hermes or DPD. Other smaller platforms connect people with opportunities from office and administration work to teaching, gardening and...