January 2024
19Jan

UK. Pension derisking to continue but may need rethinking

Mercer analysis of FTSE 350 pension funds, shows an aggregate surplus across company accounts of £47bn at the end of December 2023, a fall of £12bn over the month. Most companies report their accounts at the end of December, so although the funding position fell over the month, overall positions in 2023 saw an improvement. Schemes might expect to continue de-risking during 2024, supported by planned incoming regulation. Government’s upcoming consultation on options for DB schemes has the potential to create...

January 19, 2024
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19Jan

The Most Often Overlooked Step In Retirement Planning

When it comes to retirement planning, conversations often center around portfolio management and investment strategies—what I like to call the bling of the financial world. Generally, you sit down with an advisor and begin your work together by listing all your assets and expenses. They, in turn, provide you with a thick report of projected returns, inflation assumptions, and a—likely daunting—required savings number for your retirement nest egg. More often than not, they then offer a fancy investment product or...

January 19, 2024
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19Jan

UK. Pensions changes on the Horizon for 2024

In 2023 a number of announcements were made about changes to pensions law that are expected to take place during 2024. In addition to proposals set out in the Chancellor's Autumn Statement (summarised here), some other significant developments we expect are: Automatic enrolment: The vast majority of UK employers have to automatically enrol certain employees and other workers into an appropriate pension scheme. The Government has proposed that the qualifying age threshold for auto-enrolment will be reduced from 22 to...

January 19, 2024
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18Jan

They flocked to build China’s cities. Now builders are aging with little retirement

About 30 years ago, construction worker Song Aimin believed a lifetime of labor could earn him a spot among China's growing urban middle class. He left his village in the northern Hebei province and headed to Beijing. "Back then, all the people in the villages wanted to leave to go find work in the cities. Laboring in the cities meant that you always ate well — at least, better than you ate back home," says Song, now 64 years old....

January 18, 2024
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18Jan

Ghana. Academic activities to halt as SSA-UoG, FUSAG declare ‘indefinite strike action’

The Senior Staff Association-Universities of Ghana (SSA-UoG) and the Federation of Universities Senior Staff Association of Ghana (FUSAG) have declared an indefinite industrial action with immediate effect. The decision follows, among other things, the failure of the government to address the above bodies’ concerns regarding pensions and the reversal of what they describe as an illegal cancellation of their overtime allowance. Speaking at a news conference at the University of Ghana, Legon, in Accra, the National Chairman of the SSA-UoG, Isaac...

January 18, 2024
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18Jan

France joins list of countries where birth rates are declining

France’s population is older than ever, and its citizens are having fewer children. Just 678,000 babies were born in the country last year, the lowest number since 1946. The decline is primarily due to women having fewer children or none at all, according to Ined, France’s National Institute of Demographic Studies. The nation’s population still increased slightly last year, thanks to migration and a record high life expectancy of 85.7. These trends are not unique to France — births are...

January 18, 2024
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18Jan

China’s Population Drops by 2 Million in 2023 Due to Record Low Birth Rate

China has long seen the United States as its main geopolitical rival. But the Chinese government is facing a new threat – this one from within: a precipitous decline in the country’s birth rate, leading to a rapidly aging – and shrinking – population. China’s population fell by a staggering 2.08 million people in 2023 to 1.409 billion, according to the country’s National Bureau of Statistics. Its population had declined by 850,000 in 2022, which had been the country’s first year-over-year decline...

January 18, 2024
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17Jan

European pension funds turn to co-filing at Shell to up climate credibility

Major European pension funds are among a record number of investors who have agreed to co-file a shareholder resolution at Shell with NGO Follow This in a bid to get the oil and gas major to set tougher emission reduction targets. The biggest support Follow This received previously was co-filing from 17 investors for a shareholder resolution at TotalEnergies’ annual general meeting last year, helping it secure 30% of votes. The group of co-filers for this year’s Shell resolution is bigger and...

January 17, 2024
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17Jan

UK. Pension funds to begin TNFD reporting

At the annual meeting of the World Economic Forum (WEF) in Davos today (16 January), 320 organisations from 46 countries signalled their commitment to adopting the TNFD recommendations. Among these were Local Government Pension Scheme (LGPS) pools Brunel Pensions Partnership and London CIV. Other signatories included UK asset managers such as Fidelity International and Schroders, as well as the London Stock Exchange Group. Several UK climate-focussed asset managers were also on the list, including Climate Asset Management, Impax Asset Management, Greensphere Capital,...

January 17, 2024
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17Jan

Navigating Pension Investments: A Reader’s Concern and an Expert’s Advice

In an era where financial security is a growing concern, one reader, Sophie, finds herself grappling with pension investments and the realization of her lower risk tolerance. Aged 43, Sophie harbors fears about her current pension value of 115,985, compounded by the goal of retiring with an annual income of 30,000 plus the state pension. Understanding Sophie’s Pension Portfolio Sophie’s pension portfolio is diversified across three different pensions. She holds two with Aviva from previous employers, which she had reinvested, leading...

January 17, 2024
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