September 2022
30Sep

Sustainable finance policy a ‘blind spot’ for European pension funds

Some of Europe’s biggest pension funds are not actively engaged in emerging EU-level sustainable finance policy, according to climate think tank InfluenceMap. As reported by European Pensions, the research, which covered 25 of Europe’s largest pension funds and 10 national pension fund associations, found that only four of the 25 funds and five of the 10 associations showed ‘meaningful engagement’ with sustainable finance policy. InfluenceMap stated that these findings pointed to a potential ‘blind spot’ for the industry, which has shown...

September 30, 2022
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30Sep

Ghana. SSNIT pension scheme continues to post negative return on investments; records -12.6% return in quarter 1 – Report

The Social Security and National Insurance Trust (SSNIT) pension scheme continued to post a negative real rate of return, recording -12.6% at the end of the first quarter of this year. According to the Financial Stability Review report by the Bank of Ghana, assets available for benefits of the SSNIT-managed Basic National Social Security Scheme (BNSSS) dropped marginally by 2.3% to ¢11.28 billion in March 2022 from the ¢11.54 billion recorde in 2021 Quarter 4. Also, though the private pensions industry...

September 30, 2022
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29Sep

BoE’s £65bn move driven by pension fund panic

The Bank of England stepped in to calm markets after some types of pension funds were at risk of collapse. It pledged to buy £65bn of government bonds after Friday's mini-budget sparked turmoil on financial markets and the pound plunged. Investors had demanded a much higher return for investing in government bonds, causing some to halve in value. Pension funds, which invest in bonds, were forced to start selling, sparking fears of a fresh market downturn. The Bank said its decision to buy...

September 29, 2022
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29Sep

With Interest Rates Rising, Companies Look to Unload Pension Liabilities

The funding status of defined-benefit pension plans has been lifted by rising interest rates, which are expected to increase further Rising interest rates are boosting corporate pension plans, providing finance chiefs with an option to lighten their companies’ balance sheets and transfer obligations to insurers. The U.S. central bank has raised interest rates five times this year as it battles persistent high inflation, including last week when it opted for the third consecutive 0.75-point interest-rate increase and indicated further rate action. When...

September 29, 2022
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29Sep

Pensions in Egypt increased by 50% in recent years: Social solidarity minister

Pensions in Egypt have increased over the past three years by nearly 50 percent, and the minimum pension currently is EGP 916 per individual, Egypt's Minister of Social Solidarity Nevine El-Qabbaj said on Wednesday. El-Qabbaj made the remarks during the launch of the activities of the 6th Arab Pensions Conference that was held under the theme ‘Arab Pensions Outlook 2050 – Change and Opportunity’ in Sharm El-Sheikh. Pension systems play an important role in the Arab world and globally in providing...

September 29, 2022
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29Sep

17.5% of South Korea’s population aged over 65 and older in 2022

Data show that in South Korea's rapidly aging society, people aged 65 and older made up 17.5 percent of the country's population this year. According to Statistics Korea, the number of senior citizens exceeded 9 million this year for the first time. The agency projects that seniors will account for 20 percent of the population, making it a super-aged society, in 2025. At that pace, it will have taken only seven years for the country to go from an aged society to...

September 29, 2022
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28Sep

UK pensions hit with £100m margin calls as gilts and sterling slide

At least three LDI managers request emergency capital as others consider unwinds to avoid default. UK pension funds have been hit with variation margin calls of as much as £100 million ($107 million) each, after sharp falls in gilts and sterling pushed mark-to-market valuations on derivatives and leveraged repo positions heavily against them. Simeon Willis, chief investment officer of consultancy XPS Pensions Group, says he knows of three different fund managers running pooled pension portfolios that have requested emergency capital...

September 28, 2022
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28Sep

China to allow deferrals of gov’t-levied charges, tax concessions for private pensions

China will allow market entities to defer payments of certain government-levied charges to further reduce financial burdens, and offer tax concessions for private pension schemes, according to a State Council executive meeting. At the meeting, chaired by Chinese Premier Li Keqiang on Monday, decisions were also made to enhance government services, ensure a bumper autumn harvest with improved rural infrastructure, and promote the development of the self-employment sector. Payments of certain government-levied charges and deposits will be temporarily deferred to further...

September 28, 2022
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28Sep

Analysis of American Workers Shows Retirement Plan Type Influences Spending Habits

A new report by the Public Retirement Research Lab and JP Morgan demonstrated that public-sector workers whose primary retirement account is a defined benefit account tend to spend a higher ratio of their earnings than those with a defined contribution account. Read also With Interest Rates Rising, Companies Look to Unload Pension Liabilities The PRRL is a collaboration of the Employee Benefit Research Institute and National Association of Government Defined Contribution Administrators. They combined their datasets on public employees with defined...

September 28, 2022
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28Sep

How To Retire During A Bear Market

Imagine retiring in this market. A 60-year-old who owns a balanced fund—60% allocated to stocks, 40% to bonds—has seen the value of their investment drop by 18% so far this year. Soaring prices only makes matters worse. Not only does our 60-year-old have less wealth, but also their savings don’t buy what they used to. In fact, financial advisors say their clients have been more preoccupied with gas and food prices than the terrible stock market. “Inflation is the biggest issue...

September 28, 2022
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