December 2022
21Dec

El Salvador’s Congress approves pension system reforms

El Salvador's Congress on Tuesday approved reforms to increase pensions and create a state entity to supervise the retirement income system, despite criticism from experts who argued the measures were insufficient. Among the reforms, proposed by President Nayib Bukele, are a 30% rise in pensions and a cap of $3,000 a month. The minimum will rise to $400 a month from $304, according to a government statement that noted that 100,000 people past working age had not left their jobs due...

December 21, 2022
News,
Read more...
21Dec

US. New Spending Bill Makes It Easier for Americans Saving for Retirement

After years of negotiation, lawmakers introduced a retirement security package as part of a $1.7 trillion omnibus spending bill early Tuesday. The package, referred to as SECURE 2.0, includes several provisions, such as expanding automatic enrollment in 401(k) and 403(b) plans, enhancing the tax credit for small businesses launching a retirement plan and allowing employers to make matching contributions to a 401(k) plan, 403(b) plan or SIMPLE IRA based on qualified student loan payments. The package combines three bipartisan bills from...

December 21, 2022
News, ,
Read more...
21Dec

UK. Pensions regulator unveils consultation on defined benefit funding

A draft funding code of conduct and consultation on defined benefit (DB) pension schemes has been unveiled by The Pensions Regulator, requiring trustees to think carefully about risk management to improve security for their members. Under the draft code and consultation, schemes will be expected to set a long-term objective and a “journey plan” for achieving it. The regulator expects schemes will reduce their reliance on sponsoring employers as they reach maturity. The consultation requires trustees to raise the bar...

December 21, 2022
News, ,
Read more...
21Dec

5 Takeaways on the State of ESG Investing

ESG investing is hot. But what does it actually deliver for society and for shareholders? For the past several years or so, major funds, managers, and institutional investors have been stocking their portfolios with investments in firms that claim to be engaged in positive environmental, social, and governance (ESG) activities. On the websites of actively managed funds, investors show giant banners touting a commitment to invest in firms working to make the world a better, safer place, says Aaron Yoon, assistant...

December 21, 2022
News,
Read more...
20Dec

Ghana labour unions call for strike over local debt swap

Ghana's main unions on Monday called for a nationwide strike from next week in protest against the inclusion of workers' pensions in a local debt swap programme as part of the terms for an IMF credit. A top cocoa and gold producer, Ghana has oil and gas reserves but its debt payments are high and its revenues weak. Like the rest of Africa, it has been hit by economic fallout from the global pandemic and the Ukraine war. Two weeks ago, the...

December 20, 2022
News, ,
Read more...
20Dec

US. Pension Risk Transfer Market Keeps Setting Records

The U.S. pension risk transfer market showed no sign of slowing in the third quarter of 2022, as market activity continues to reach new levels The year’s first quarter saw $5.3 billion in sales split about evenly between single premium buy-ins and buyouts, according to data from financial industry research organization LIMRA. That mark was 40% higher than 2021’s first quarter and the highest first-quarter result on record. There were no buy-in contracts sold in Q2, but single premium buyout sales...

December 20, 2022
News, ,
Read more...
20Dec

UK. Early retirement and our ageing population are causing labour shortages, says Lords report

Economic inactivity has increased by 565,000 people since the start of the pandemic - a stark reversal of what was happening before 2020. The biggest contributor to this change has been an increase in early retirement, the House of Lords Economic Affairs Committee concluded today in its report “Where have all the workers gone?” Background Earlier retirement is the biggest of four factors that have made it harder to fill jobs. Increasing sickness; changes in the structure of migration; and an...

December 20, 2022
News, ,
Read more...
20Dec

The rise of age-friendly jobs and what employers need to know

Ageism in the workplace is a growing concern. A recent Washington Post story on the futility of age-discrimination lawsuits highlighted two troubling data points: In a recent survey conducted by the American Association of Retired Persons, 61% of workers 45 and older reported seeing or experiencing age discrimination. And a study by the Urban Institute and ProPublica found that 56% of workers 50 or older were pushed out of longtime jobs before they chose to retire. This economic and ethical...

December 20, 2022
News, ,
Read more...
19Dec

UK. State pension: ‘60,000’ veterans set to miss out on 10.1% boost next year

Chancellor Jeremy Hunt has confirmed there will be a 10.1 percent rise to the state pension from April 2023, as the triple lock returns. The news has been welcomed by many older Britons, but not all state pensioners can expect to obtain the increase. The UK European Economic Area (EEA) Gibraltar Switzerland Countries with a social security agreement with the UK (but not Canada or New Zealand). Those who live outside of these countries will not get a yearly increase, and...

December 19, 2022
News,
Read more...
19Dec

Top-rated retirement systems around the globe

A new report from Morningstar evaluates retirement systems in eight “highly educated and wealthy countries” often cited in independent studies as being among the best in their regions. In a recent webinar reviewing the report, authors Andy Pettit, director, policy research at Morningstar, and Lia Mitchell, senior analyst, policy research, discussed some of the more effective features that they found in the countries that they studied and some areas that would benefit from change in those countries, including the...

December 19, 2022
News,
Read more...