August 2024
13Aug

NY pension fund bought $75M CrowdStrike stake just before global IT meltdown — faces loss of nearly $30M

A New York state pension fund is facing nearly $30 million in losses after amassing a stake in CrowdStrike — just before the IT firm caused a global network meltdown that sent the company’s stock into a tailspin. The New York State Teachers’ Retirement System (NYSTRS) bought 197,462 shares in the Austin-based cybersecurity company in the second quarter of this year, according to its latest investor relations report. That stake was worth more than $75 million on June 30, the filing...

August 13, 2024
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13Aug

Half Of Retirees Will Run Out Of Money. That’s The Good News.

“Almost half of American households will run short of money in retirement if they stop working at 65, new research predicts,” Marketwatch reports regarding a new study released by Morningstar. I’ll give you all a moment to breath into a paper bag. Now that you’ve recovered, let’s take a closer look at the Morningstar Model of US Retirement Outcomes, created by Jack VanDerhei and Spencer Look. The details show a much more positive picture regarding Americans’ retirement income security. Using data on Americans’ earnings and...

August 13, 2024
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13Aug

Funded Status of Corporate Pension Plans Held Steady in July

The funded status of corporate pensions stayed steady in July, but some pension trackers saw their first declines in months. Across the board, strong investment returns were offset by a decline in discount rates used to value pension liabilities. Equities were strong in July, although the month saw a decline in tech and artificial intelligence stocks, especially the Magnificent 7. Tech darlings like Nvidia, Apple and others peaked mid-month, with some large- and mega-cap tech stocks declining by double digits...

August 13, 2024
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12Aug

Get policies right for pension planning

Economic policies form the foundation upon which pension funds thrive or falter. When the economic environment is favourable such that there is sustainable growth and inflation is kept in check, pension funds can fulfill their obligations to retirees. Otherwise, the financial security of pensioners is threatened. The NSSF Act of 2013, which mandated an increase in NSSF contributions, was one of the new legislations that had a favourable effect on pension contributions in Kenya. This occurred in February of last...

August 12, 2024
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12Aug

Over 64% Agree: Raising Retirement Age Will Affect China’s Workforce

China’s recent announcement to gradually raise its statutory retirement age over the next five years has sparked widespread public interest. This move, aimed at addressing the challenges posed by an aging population and a stressed pension system, has garnered mixed reactions across the country. Real Research, an online survey app, conducted a survey on China raising retirement age to gauge public awareness and sentiment regarding this significant policy shift. Key Findings 57.44% believe that the current retirement age in China is...

August 12, 2024
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12Aug

Confronting low fertility rates and population decline

Fertility rates have been declining in high-income countries for decades. This trend, along with increasing human longevity, poses a challenge for advanced economies. This column argues that a holistic set of policies can be implemented to address the economic risks. These policies should stimulate human capital accumulation and education, which are more important than population size for economic prosperity. Furthermore, polices should promote healthy aging and more choice over retirement decisions, and family-friendly policies to slow the fall in...

August 12, 2024
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12Aug

Australian Pensions Industry Boosts Investments in Natural Catastrophe Reinsurance

The risks from the growing number of natural disasters offer Australia’s largest pension funds a chance to boost returns. Colonial First State, one of the nation’s biggest pension and wealth managers, is looking to add natural catastrophe reinsurance to its A$151 billion portfolio ($99.5 billion), while rival Insignia Financial Ltd. posted returns of 16% in the category last financial year. Australia’s fast-growing pensions industry needs to find investment opportunities for the more than A$2 billion of inflows it gets every week....

August 12, 2024
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09Aug

EU allocates €43 million for Palestinian Authority salaries

The European Union (EU) has announced a €43 million contribution to assist the Palestinian Authority in paying salaries and pensions for its employees and retirees in the West Bank. According to the EU statement, this financial aid is intended to help the Palestinian Authority meet part of its obligations to its civil servants amid severe financial difficulties caused by a prolonged economic crisis in the occupied Palestinian territories. The situation is exacerbated by irregular Palestinian tax clearance payments and ongoing deductions...

August 9, 2024
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09Aug

Pay workers’ contributions on time – SSNIT tells government

The Social Security and National Insurance Trust (SSNIT) has painted a gloomy picture about the sustainability of the scheme saying the escalation in benefit disbursements was outpacing the rate of contribution collection. The Director-General of SSNIT, Kofi Bosompem Osafo-Maafo attributed the phenomenon to irregular payments by the government being the largest employer. He was speaking at the opening of a three-day 2024 Operations and Benefits Conference of SSNIT at Elmina on Wednesday, August 8. The conference on the theme: “Sustaining the SSNIT...

August 9, 2024
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09Aug

Largest UK pension fund sells off Israeli assets amid member anger over Gaza

The UK's largest pension fund has sold off £80m ($101m) in assets linked to Israel amid internal pressure from members, the Financial Times has reported. The Universities Superannuation Scheme (USS) manages investments totalling £79bn in total and has more than 500,000 members who work for universities and higher education institutions in the UK. Pressure has grown on the fund to withdraw its Israeli investments in light of the ongoing war on Gaza and Israel's longstanding occupation of Palestinian land. At least, 40,000 Palestinians have been killed in Israel's ongoing military...

August 9, 2024
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