May 2023
19May

Africa’s vast potential lures U.S. investors in search of returns, impact

Africa for years has struggled to attract the notice of — and money from — American pension funds. But in the past two years, U.S. pension fund trustees and other billion-dollar asset owners appear more open to investing in some of Africa's 50-plus countries, particularly in infrastructure. Institutional investors are encouraged by a U.S. government-led geopolitical charm offensive in Africa, and are wagering on higher-risk returns amid inflation, Fed rate hikes and uneven portfolio performance at home. And pension funds may one...

May 19, 2023
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19May

How To Minimize Ageism Through The Use Of AI

Artificial intelligence (AI) holds great promise in the fight against ageism, and future technologies powered by AI can be a first step to ensure older adults are fully involved in the processes, systems and, ultimately, services that will affect them throughout the aging journey. Healthcare providers, governments, academia, not-for-profits and businesses can ensure that AI is not only strengthening healthcare for older adults but also empowering them to meet their individual needs. At the same time, there are also significant risks...

May 19, 2023
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19May

UK. British Steel forges $3.4 billion buy-in to fully insure plan

British Steel Pension Scheme, Glasgow, Scotland, insured £2.7 billion ($3.4 billion) in liabilities through a buy-in with Legal & General Assurance Society, securing a buyout, according to a news release. The latest deal, which was the plan's fourth risk transfer deal since November 2021, covered the remaining 40% of liabilities and the benefits of all 67,000 plan participants. In 2017, the British Steel Pension Scheme was restructured after its plan sponsor, Tata Steel U.K., experienced financial difficulty. "Since the new scheme was...

May 19, 2023
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18May

US. Pension Funds Appear Unfazed by Potential US Default

With the X-date looming for when the U.S. government could default on its bonds and welch on paying other obligations due to the standoff over raising the federal debt ceiling, there is scant panic among pension plans. While they have little to say publicly about the prospect of a default, one CIO said, “We have enough liquidity to get through this, and we think [the impasse in Washington] will be resolved quickly.” Typically, plans exude an outward calm. A spokeswoman for...

May 18, 2023
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18May

Hong Kong: Older people are increasingly choosing to work longer

People nearing or past age 65 are increasingly choosing to work longer. Between 2011 and 2021, the share of labour force participants aged 55 to 64 years rose from 49% to 59%, and that of people aged 65 and over more than doubled, from 6.2% to 12.5%, according to a report released by Prudential plc. Financial need is a major motivator in Hong Kong in the decision to prolong one’s working life, as lifespans in Hong Kong grow longer, says...

May 18, 2023
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18May

What’s the State of Sub-Saharan Africa’s Pension Savings?

Less than 10% of the workers in sub-Saharan Africa save for old age, the lowest rate for any region in the world. That implies most of the breadwinners today won’t be able to afford basic items after retirement. A pension plan is meant to commit employers to make regular savings so that employees will continue to earn after retirement. Pension schemes in sub-Saharan African countries are characterised by low contributions due to low earnings, high informality, high financial illiteracy levels and lack...

May 18, 2023
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18May

UK. Pensions industry set for ‘fraud crisis’

Greater accessibility to retirement savings could leave Brits ‘highly vulnerable to a wide-scale wave of scams’ The pensions sector is facing a looming fraud crisis that could see millions of pensioners scammed out of their life savings, according to a report from LexisNexis Risk Solutions The Digital Pension Fraud: a looming crisis awaits report found that industry experts fear greater accessibility to draw down cash from retirement savings as digital pension services come online will leave pension holders highly vulnerable to...

May 18, 2023
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17May

US. Pension risk transfer market off to strong start this year

The U.S. pension risk transfer market had a very strong first quarter, with an estimated $6 billion in total volume, according to a report from Legal & General Group. The estimate exceeds the previous record for a first quarter set last year at $5.3 billion. Legal & General noted that PRT activity has traditionally been the slowest during the first half of the year and projects a total of $23 billion in volume for the first half of 2023. The...

May 17, 2023
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17May

UK. Improving financial security in retirement

How much to put aside for retirement is one of those issues that many working age people do not like to think about very much. With the last seven years dominated by Brexit, dealing with a pandemic and recovery from it, supporting households and businesses with energy bills and the cost of living crisis, it is also fair to say retirement saving has not been front and centre in the mind of policymakers either. While there was a lot of policy...

May 17, 2023
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17May

The whys and wherefores of pension adequacy in India

While a pension of 50% of last salary may seem reasonable in view of the fact that some expenses such as on commuting, housing and dining get reduced after retirement, other expenses, such as on health care, travelling and insurance increase and offset savings to some extent. Some financial planners speak of the 80% rule, which states that one needs 80% of last salary to have a reasonably comfortable life after retirement. There is some merit in this argument There...

May 17, 2023
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