January 2024
26Jan

China promotes full implementation of private pension system

China will promote the full implementation of a private pension mechanism that has already been introduced in 36 cities and regions, the Ministry of Human Resources and Social Security announced Wednesday. At a press conference held in Beijing, the ministry said the system has been running smoothly and "positive progress" has been made since its introduction in 2022, adding that more than 50 million people have opened accounts to participate in the mechanism. The mechanism allows Chinese citizens to contribute up...

January 26, 2024
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25Jan

Chile Lower House Approves Base Text of President Gabriel Boric’s Pension Reform

Chile’s lower house of Congress approved the base text of President Gabriel Boric’s pension reform, while rejecting a key clause, damping government celebrations over one of its few legislative victories. Lawmakers backed the legislation on Wednesday by 84 votes to 64, but went on to reject a proposal over the destination of funds from a new employer pay-in as they subsequently voted on the bill article-by-article. The vote still advances one of Boric’s marquee proposals and gives temporary respite to a...

January 25, 2024
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25Jan

Savers at risk from UK’s pension ‘pot for life’ plan, industry leaders warn

Critics say government proposal for single, career-long retirement funds could leave individuals worse off A proposed shake-up of the UK’s pension market to give millions of workers the right to choose a retirement “pot for life” risks leaving savers worse off, industry leaders and unions have warned. In last year’s Autumn Statement economic plan, the government issued a call for evidence on a “lifetime provider” model, which would allow consumers to stick with one pension pot throughout their career. Currently employers are...

January 25, 2024
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25Jan

Kenya. Pensioners in tears over their delayed gratuity

“I regret having ever worked for the government,” says Mama Pauline Kiragu before she falls into deep silence. This is the cry for justice for millions of aging Kenyans — who worked in the civil service — waiting for pension payments running into billions of shillings. After many years of toil, most of them have retired home lonely fighting vagaries of old age, sickly, weak, dependent and poor. Thousands are unable to access their savings for upkeep and medical care. Others have...

January 25, 2024
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25Jan

Money managers divided over Chinese equities

Global money managers are split as to whether buy signals are flashing for China stocks right now, even as they agree the equity market does look cheap. The gap between Chinese company market capitalizations and the U.S. stock market was $42.5 trillion as of market close Jan. 23, based on Pensions & Investments' calculations using Bloomberg data. Bloomberg reported Jan. 23 that Chinese stocks have lost more than $6.3 trillion in value from a February 2021 peak, vs. a $5.3 trillion...

January 25, 2024
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24Jan

UK pension funds turn to renewable energy investment

UK pension funds and insurers are keen to increase allocations to renewable energy in the coming years, according to new research. A survey by AlphaReal, a specialist real assets manager, found that a majority of pension funds and insurers planned to increase their allocation to renewable energy in the next year. The survey, which included institutions with a combined £360bn in assets under management, found that 90% of respondents planned to increase their allocation to renewables, with the remaining 10% open...

January 24, 2024
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24Jan

US. IRS Announces Modest Changes To Retirement Plan Contribution Limits

In response to the current inflationary environment, the Internal Revenue Service announced a modest increase in the maximum contribution limits for 401(k)s and Individual Retirement Accounts for 2024. This year, 401(k) savers can contribute a maximum of $23,000, marking an increase of over 2% from the $22,500 limit set for 2023. The new contribution limit, effective from January 1, 2024, applies to 401(k) plans, along with 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees. Despite being less...

January 24, 2024
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24Jan

Ghana’s Pension Regulator, NPRA, appoints new CEO

President Nana Akufo-Addo has appointed John Kwaning Mbroh as the Chief Executive Officer (CEO) of the National Pensions Regulatory Authority (NPRA). Mr. Mbroh, whose appointment takes effect from 1st February 2024, replaces Mr. Hayford Atta Krufi who proceeds on retirement after holding the position since 2017. Mr. Mbroh is a management member of the NPRA and currently the Director of Standards and Compliance at the Authority for the past six years. He has taken charge of the core mandate under Section 7 of Act 766 of 2008...

January 24, 2024
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24Jan

U.S. insurers willing to take on more risk in 2024 — survey

U.S. insurers are willing to take on more risk in 2024 with their outsourced investment management, with more than half expecting to allocate at least 20% to private assets in the next two years, according to a new survey from Conning. In Conning's third annual survey conducted with more than 300 insurance executives in November, 62% of respondents said their risk tolerance will increase in 2024 (down from 64% that replied that for 2023) despite concerns about inflation, volatility, fiscal...

January 24, 2024
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24Jan

The Ins and Outs of Final Salary Pensions

How do you envision your golden years? For many, it means traveling or just relaxing on sun-kissed beaches, free of the daily grind. Financial security, however, is crucial to a truly idyllic retirement. The golden ticket to that blissful state used to be a final salary pension, but unfortunately, it no longer exists. Today, the pension landscape has radically changed. In place of final salary plans, defined contribution plans like 401(k)s have become more common. As of November 2023, 22% of non-retirees...

January 24, 2024
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