February 2024
02Feb

UK. One in four have stopped paying into their pensions

Almost two in five pension investors have stopped contributions or cut back on payments in the past five years, new research from wealth manager Investec Wealth & Investment has revealed. The nationwide study found a quarter have stopped paying into their pensions altogether, while another 12% have dramatically or slightly reduced monthly contributions. One of the primary reasons given was the cost-of-living crisis, followed by moving jobs or receiving a pay cut. Investec estimates the average amount of lost contributions adds up...

February 2, 2024
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02Feb

Malaysia. Proposed abolishment of politician’s pension to be discussed in Cabinet, then Parliament, says PM

REMBAU: The proposal to abolish pensions for politicians will first be discussed at the Cabinet level and then brought to Parliament before any decision is implemented, says the Prime Minister. Datuk Seri Anwar Ibrahim said as a moral responsibility, the matter needs to be tabled and thoroughly explained as it was difficult to rationalise if the abolition of the pension was excluded for politicians. "Some people have asked what about politicians; the system is different, but I think it's reasonable if...

February 2, 2024
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02Feb

Will AI revolutionize the retirement industry?

A recent survey from Professional Pensions showed 17% of pension experts think Artificial Intelligence (AI) will revolutionize the industry a great deal, while 60% agreed it will to some extent. Only 7% argued AI will not change the way things in the industry are done. With that backdrop, the EBRI-Milken Institute 2024 Retirement Symposium’s panel, Innovations and FinTech: Developments that Can Enhance Financial Security, Retirement Planning and Spending Down Assets, discussed the nature of AI within the retirement planning process. Yon...

February 2, 2024
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01Feb

Milliman analysis: Competitive pension risk transfer costs decrease from 101.8% to 100.5% in December

Milliman, Inc., a premier global consulting and actuarial firm, today announced the latest results of its Milliman Pension Buyout Index (MPBI). As the pension risk transfer (PRT) market continues to grow, it has become increasingly important to monitor the annuity market for plan sponsors that are considering transferring retiree pension obligations to an insurer. “Retiree buyout costs open 2024 at their lowest level in almost six months--despite another sizable drop in accounting discount rates” During December, the estimated cost to transfer...

February 1, 2024
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01Feb

Analysis: 2024 to be the biggest year for UK pension de-risking

UK pensions consultants expect 2024 to be another record-breaking year for the pensions risk transfer market with transactions surpassing 2023 levels. The final figures for 2023 are yet to be published. However, it is widely expected that there were circa £50bn in deals, which would brand 2023 as a record year for pension risk transfers, compared with the previous high of £43.8bn in 2019. UK pensions consultants expect this trend to continue. WTW expects pension risk transfer volumes to reach £80bn, with...

February 1, 2024
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01Feb

Kenya. Counties owe pension schemes Sh41.2bn – Government Workers Union

Kenya County Government Workers Union has decried continued non-remittance of pension funds by devolved units, stating that the debts currently stand at Sh41.2 billion. Secretary General Roba Duba regretted that counties have been opting to pay “urgent” debts over remitting pension dues. Addressing a press conference in Nairobi, Duba said the union is going to petition the National Treasury to look at ways of addressing the matter urgently. “The issue of pension scheme management has not been given the necessary attention it...

February 1, 2024
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01Feb

Canadian funds tapping into investment opportunities in Brazil

By PALASH GHOSH   Canadian pension funds have been investing in Brazil, a huge country that boasts a growing $2.1 trillion economy, the largest such economy in Latin America and an especially attractive target for infrastructure and energy investments, as evidenced by the recent agreement by Caisse de Depot et Placement du Québec to increase its stake in a natural gas transmission firm. Ironically, Brazil jumped two spots last year to surpass Canada itself as the globe's ninth biggest economy, the International Monetary...

February 1, 2024
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01Feb

South Africa. 2023 was a somewhat better year for salaries and private pensions

The BankservAfrica Take-home Pay Index (BTPI), which tracks the average nominal take-home pay among approximately 4 million salary earners in South Africa, ended the 2023 year on a slightly better note as salaries and private pensions performed slightly better than in the previous year. “The average nominal take-home pay was 5.6% higher at R15,409 in December 2023 compared to the R14,596 recorded in December 2022,” says Shergeran Naidoo, BankservAfrica’s head of stakeholder engagements. However, the average nominal take-home pay in 2023...

February 1, 2024
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January 2024
31Jan

U.K. looks to reprioritize investment flexibility in pension fund legislation

The U.K. government is amending proposed legislation to ensure defined benefit plans do not become overly risk averse, following a consultation review that was published online. DB plans in the U.K. will be able to take more investment risk when supported by sponsoring employers, according to the government's final position on the long-running development of new legislation for pension plans. "It was never (the U.K. government's) intention to bear down on risk-taking across the board. Rather, it was to make funding...

January 31, 2024
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31Jan

Pension insurers charter commits to sustainable pension risk transfers

Accounting for Sustainability (A4S), the Church of England Pensions Board and Railpen have developed a charter for pension insurers that sets out guiding principles for the bulk annuity process focusing on transparency, decision making, reporting and engagement, and collaboration. The pension funds that have joined the charter as founding signatories include Cancer Research Pension Scheme, Church of England Pensions Board, HSBC Bank Pensions Scheme, Railpen, and Railways Pension Scheme. For insurers, founding signatories include Aviva, Just Group, Legal & General, Pensions...

January 31, 2024
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