March 2023
15Mar

UK. Budget: Pensions to get boost as tax-free limit to rise

The total amount that workers can accumulate in their pension savings before paying extra tax is expected to be increased in Wednesday's Budget. The final figure has not been confirmed, but people are expected to be able to save up to £1.8m over a lifetime, up from £1.07m currently. The policy aims to stop people - particularly doctors - from reducing hours or retiring early owing to tax. Critics say the move will only benefit a small fraction of the workforce. UK economic...

March 15, 2023
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15Mar

Ghana. ‘We don’t have time to go to court, we’ll picket MoF some more’ – Pension bondholders threaten

Pensioners who bought government bonds and have not been paid their coupons have threatened to picket the Ministry of Finance some more if they are not paid in 48 hours. "We have our options, plenty of them, including the picketing, so, when it comes that we have to repeat, we'll repeat", the group's convener, Dr. Adu Anane Antwi, told Valentina Ofori-Afriyie on Class91.3FM's mid-day news programme 12 Live. Asked if the options included going to court, Dr. Anane Antwi said: "No,...

March 15, 2023
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15Mar

Why So Many Experts Consider Annuities a Win for Retirees

Do you know what type of retirement product saw sales soar 44% in 2022 — and received praise and positive publicity in the finance field as consumers saw their other retirement investments lose value? It’s not cryptocurrency! It’s not some hedge fund. Or junk bonds. It’s easily understood and won’t be seen as a fad in future years. I’ve described it as a product that “doesn’t make your retirement; it makes your retirement better.” Its technical term is single premium immediate annuity,...

March 15, 2023
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15Mar

Sweden’s New $90 Billion Pension Plan: Non-ESG Funds Not Welcome

Sweden has announced a plan to promote Environmental, Social and Governance (ESG) oriented companies through the targeted investment of its pension fund. One trillion Krona (90 billion USD) of pension savings will be allocated for investment into firms that abide by ESG standards. This plan is the most recent of a series of initiatives put in place by the Swedish pension system to contribute towards the fight against climate change, human rights and other pressing issues. The wave of societal contributions...

March 15, 2023
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14Mar

Pensions Lose Millions After Bank Collapse

Pensions across the globe have lost millions of dollars due to the collapse of Silicon Valley Bank (SVB). In the wake of SVB's Friday closure, several pension funds in the U.S. and two overseas have confirmed that they had investments in SVB stock that will likely be at a loss now that the bank has been shut down by federal regulators. Just before the weekend, a bank run sent the San Fransisco-based financial institution plunging into crisis as depositors made mass...

March 14, 2023
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14Mar

China to raise retirement age to deal with aging population – media

China is planning to raise its retirement age gradually and in phases to cope with the country's rapidly aging population, the state-backed Global Times said on Tuesday, citing a senior expert from China's Ministry of Human Resources. Jin Weigang, president of the Chinese Academy of Labor and Social Security Sciences, said China was eyeing a "progressive, flexible and differentiated path to raising the retirement age", meaning that it would be delayed initially by a few months, which would be subsequently...

March 14, 2023
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14Mar

UK. DB Pension Risk Transfers May Slow Due to Lack of Liquidity

High interest rates have made it a good time for some defined benefit plan sponsors to transfer pension risk, but a liquidity pinch may be delaying or altogether shutting off the window, according to experts who spoke at PLANADVISER’s virtual DB Summit last week. The interest rate hikes, which the Federal Reserve started about a year ago to try and tame inflation, have brought present liability down for many plans, said Gloria Griesinger, assistant treasurer for global pension investments and...

March 14, 2023
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14Mar

East Asia grapples with an aging society

The elderly population in East Asia is swelling as the birth rate continues to decline. The region now has the world's lowest fertility rate, raising fears of social and economic woes, especially for its youth. "I'm afraid to have children," Seha [surname withheld], a resident of Seoul, the South Korean capital, told DW. Although she feels it would bring her happiness, the 22-year-old believes that having children could stop her from pursuing her career. "I've seen many married women quit their...

March 14, 2023
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13Mar

GOP lawmaker says US should consider raising retirement age for future Social Security beneficiaries

Republican Rep. Nancy Mace of South Carolina said Sunday that raising the retirement age for future Social Security beneficiaries should be “on the table” as long as it doesn’t affect “anybody that’s heading into retirement right now.” “I think that’s something that has to be on the table, we have to look at,” Mace told CNN’s Kaitlan Collins on “State of the Union” when asked about Republican presidential candidate Nikki Haley’s call for a higher retirement age for Americans who...

March 13, 2023
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13Mar

Spain, Commission agree to controversial pension reform

The government and the European Commission reached a last-minute agreement on a controversial pension system reform which paves the way for Madrid to receive the next tranches of the EU’s Next Generation funds. After months of work and tangible divergences between the two coalition partners, PSOE (S&D) and Unidas Podemos (EU Left), the government struck a deal on Friday, partially softening the coalition’s rift currently in. The reform, agreed with the European Commission, is part of the several milestones committed by...

March 13, 2023
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