November 2020

11Nov

U.K. deficits worsen in October as COVID-19 resurgence bites

The total deficit of U.K. defined benefit funds covered by the Pension Protection Fund's 7800 index increased 1.3% in October, to £168.2 billion ($217.7 billion). The deficit was £166.1 billion at the end of September. Deficits also worsened for the year ended Oct. 31, from £74.3 billion, said an update Tuesday by the London-based PPF. The PPF is the lifeboat fund for the defined benefit plans of insolvent U.K. companies. The funding ratio of the corporate pension plans worsened...

November 11, 2020
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11Nov

Japan’s Government Pension Investment Fund Returns 3.05% in Q2

Japan’s Government Pension Investment Fund (GPIF) posted an investment return of 3.05% gross of fees during the second quarter of fiscal year 2020 to raise the asset value of the world’s largest pension fund to 167.536 trillion yen, or $1.62 trillion. The fund is now $440 billion larger than the world’s second largest pension fund, Norway’s Government Pension Fund Global (GPFG), which currently has an asset value of roughly $1.18 trillion. To put that in perspective, the gap between...

November 11, 2020
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11Nov

South Africa. The scary facts about the gender pension gap

Echoing concerns raised by the World Economic Forum earlier this year, 10X Investments’ new South African Retirement Reality Report adds more data showing this worrying trend of women falling further behind men. 10X’s third annual Retirement Reality Report (RRR20) shows that the retirement savings gap between the genders has grown in the last year, not only because the gender pay gap has widened, but because many women continue to reject the best option they have for narrowing the gap,...

November 11, 2020
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10Nov

UK. Pension professionals call for TPR to focus on covenant sustainability amid Covid-19

The majority (67 per cent) of pension professions believe that The Pensions Regulator (TPR) should adjust its 'tougher' approach to focus on the sustainable growth of scheme sponsors amid the economic impact of Covid-19, according to a survey from Herbert Smith Freehills. The poll, undertaken during a recent webinar, revealed that just 21 per cent thought that the regulator’s existing 'clearer, quicker, tougher' approach, initially adopted in light of recent high-profile corporate failures, should be maintained in the current...

November 10, 2020
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10Nov

Ghana. SSNIT saves ¢200m after value for money audit, renegotiation of legacy investment-related costs

The Social Security and National Insurance Trust (SSNIT) has saved some ¢200 million on legacy investment-related costs. This was achieved through value for money audit and renegotiations of such costs. According to the Director-General, Dr. John Ofori-Tenkorang the measure taken was relevant for the sustainability of the trust. “The cost-saving measures implemented by the leadership of the Trust have helped to improve the financial health and long-term sustainability of the Trust”, he said in a speech delivered at the...

November 10, 2020
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10Nov

Risk Dashboard: European insurers slightly less exposed to risks compared to the beginning of COVID-19 outbreak but concerns remain

Today the European Insurance and Occupational Pensions Authority (EIOPA) published its updated Risk Dashboard based on the second quarter of 2020 Solvency II data. The results show that the risk exposures of the European Union insurance sector slightly reduced, compared to July risk assessment. Insurers are particularly exposed to very high levels of macro risk, while market, credit, profitability and solvency risks decreased to medium level. However, the risk assessment does not account for the outbreak of the second...

November 10, 2020
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10Nov

South Africa. Improving pension fund outcomes: a case for hedge funds

“Shouldn’t we have more offshore exposure?” Investors continue to express concern regarding the state of South Africa’s fiscal and monetary issues. Despite the added volatility that can come by an increase in offshore exposure for a rand-denominated investor, investors are asking the question as to how they can increase their offshore exposure. Some investment professionals have been very vocal about the state of affairs in South Africa and have openly promoted taking your money offshore whilst others have cautioned against...

November 10, 2020
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09Nov

US. 5 Ways President Biden May Make Lasting Changes To Retirement

While President-elect Biden and a nation wait for President Trump to concede the election, focus turns to how a Biden administration will lead. Biden has put forth many policy initiatives, including significant changes to retirement savings and Social Security. His ability to implement his vision depends in large part on Georgia. Two Senate races are headed to run-off elections in January. It seems likely that at least one race will go to a Republican, giving the GOP a razor-thin...

November 9, 2020
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09Nov

75% of Aussies support 12% superannuation guarantee increase

An overwhelming majority of Australians support lifting the superannuation guarantee to 12% despite Reserve Bank modelling revealing that doing so will shrink wages growth. Three in four Australians say they support increasing the super guarantee to 12%, according to a nationwide survey conducted by the Association of Superannuation Funds of Australia (ASFA). Only 12% of the 1,375 people surveyed said they think the super guarantee rate should remain unchanged at 9.5%. The superannuation guarantee is the minimum amount your...

November 9, 2020
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09Nov

UK. DWP guidance nudge claims are ‘pure spin’, says MP

MPs have criticised the Department for Work and Pensions’ (DWP) latest proposals on guidance nudges, saying they lacked determination and would not go far enough to increase uptake. In the latest hearing of the Pension Schemes Bill, Neil Gray, a Scottish National Party MP, labelled the DWP’s claim that a stronger nudge by providers would significantly increase take up of Pension Wise guidance “pure spin”. Mr Gray said: “[...] the cited Maps (Money and Pensions Service) stronger nudge trials...

November 9, 2020
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