April 2023

The Maximum Human Lifespan Will Rise Dramatically This Century, Researchers Say

Our ability to extend human lifespans is improving dramatically, but whether there is any natural limit to how far we can push is an outstanding question. New research contradicts claims that we’re approaching a maximum human lifespan. The question of whether or not there is a limit to how long humans can live has fascinated scientists for decades. While answering this question is likely to require a better understanding of the physiological process of aging, researchers have long tried to...

March 2023

The economic — and political — consequences of reforming France’s pensions

Earlier this month, French President Emmanuel Macron followed through on his long-touted promise to reform the country’s pension system, raising the retirement age from 62 to 64. How he did it though — essentially forcing the legislation through without a vote in the lower house of parliament — hit a nerve. Since then, over a million people have taken to the streets across France; social media has been filled with images of uncollected garbage piling on the streets of Paris...

UK confirms delay in lifting of state pension age to 68

The UK government has confirmed it will not bring forward a rise in the state pension age to 68, saying a review of the policy will be delayed until after the next general election. The state pension is at present 66 for men and women, rising to 67 from 2026. It had been due to gradually rise to 68 from 2037, under plans first announced by ministers in 2017. But Mel Stride, work and pensions secretary, told MPs on Thursday that...

Chinese cities are so broke, they’re cutting medical benefits for seniors

China's government, strapped for cash after years of enforcing a costly zero-Covid policy, is cutting medical benefits and planning to raise the retirement age, in deeply unpopular moves that are fueling widespread public anger. Thousands of elderly people have been taking to the streets since January to protest big cuts to monthly medical benefit payments. They've gathered in four major cities across the country, demanding local officials reverse the decisions. The changes are part of a national overhaul mainly intended to...

BlackRock calls on clients to rethink hedging strategy after UK pension crisis

BlackRock's liability-driven investment business is urging some smaller UK pension fund clients to stop splitting assets across multiple managers, as it tries to cut the complexity and risks of a strategy that imploded last year. Asset managers worry new rules to make LDI investing more robust could render the strategy unviable for some schemes, but consultants warn BlackRock's push could repel pension clients who want to minimise concentration risk. LDI, a hedging strategy used by thousands of schemes to ensure their...

US. Pension Risk Transfers Spiked in 2022 due to Higher Interest Rates, Report Shows

Rising interest rates drove increased pension risk transfer activity in 2022, as these transactions totaled $52 billion in premiums last year—the highest total in the decade Aon has been tracking the information, according to a recent report. A total of 568 pension risk transfer transactions were made last year, with IBM headlining this activity by completing a $16 billion retiree lift-out in September  2022. This was the second-largest PRT transaction in U.S. history, Aon’s U.S. Risk Transfer report for March...

UK. TPR launches diversity, equality and inclusion guidance for pension fund trustees

The Pensions Regulator (TPR) this week published guidance for pension scheme governing bodies and employers on equality, diversity and inclusion (EDI) with a view to  imrpoving the EDI of UK pension schemes’ boards. Louise Davey, TPR’s director of regulatory policy, analysis and advice, said: “All savers deserve to be in a well-run pension scheme that makes decisions in their best interests.” She added: “Harnessing diverse views can help pension scheme governing bodies weigh issues in more detail and openly consider aspects...

Pension Spending Soars 10% To €12 Billion In March As Spain Takes On €6 Billion A Month In Debt

Social Security paid out €11,945.6 million in contributory pensions in February, 3 billion more than the 8,946.9 million in March 2018, a few months before Pedro Sánchez came to government. The average monthly retirement pension shot up from the €1,260 it stood at in December 2022 to €1,372 per month, up 9.7%. And since there were no differences by amount bracket, the maximum pension exceeded €3,000 per month for the first time. The average amount of new pension registrations in...

Kenya. MPs revive attempt to raise pension for former members

Parliament has revived a Bill rejected by former President Uhuru Kenyatta to increase pension for members who retired between 1984 and 2001. The Bill republished by Kimilili MP Didmus Barasa shows it will cost taxpayers an extra Sh180.9 million every year to keep former MPs who retired between July 1, 1984, and January 1, 2001, comfortable. The Budget and Appropriations Committee (BAC) heard that should the Parliamentary Pensions (Amendment) Bill 2022 sail through, the former legislators will earn a monthly pension...

Czechs protest government bid to raise retirement age

Czech labor unions on Wednesday joined with opposition parties to protest the government's proposed bid to raise the retirement age by four years to 68. Some 2,000 protesters gathered Wednesday in front of government offices in the capital Prague to voice their opposition to the plan. “We definitely don't agree,” read a letter ratified at the gathering. “We will defend ourselves,” Roman Durco, the head of the KOVO labor union group that organized the rally told the angry crowd. Labor and Social...