August 2018

30Aug

US. 3 steps toward fixing America’s retirement system

The U.S. retirement system clearly has shortcomings that are leading to widespread insecurity among older workers. In recognition of this anxiety, recent meetings in Washington, D.C., focused on the system's much-needed modernization as the Bipartisan Policy Center (BPC) launched its Funding Our Future initiative. It focuses on three significant changes that could significantly improve retirement for many U.S. workers: Put Social Security on a sustainable financial path. More than two-thirds of Americans worry that Social Security won't be there when...

August 30, 2018
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30Aug

UK. Pensions: don’t cash out of defined benefits, warns regulator

Pension schemes are being warned they may be being too generous when offering cash lump sums to people considering transferring out of their gold-plated deals. A letter sent by the Pensions Regulator to defined benefit (DB) pension schemes suggests that trustees think about whether they should cut the amounts on offer for workers leaving the pension scheme. The letter has been sent to 14 schemes where the regulator is aware there has been a particular increase in transfer requests from members....

August 30, 2018
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30Aug

Germany. German coalition agrees upon measures to stabilize pensions

Labor Minister Hubertus Heil told ZDF television Wednesday that the measures agreed upon late Tuesday would bring "stability and security" for retirees by keeping pensions at 48 percent of a retiree's average working salary until 2025. Other measures include reducing employees' contributions to unemployment insurance by 0.5 percentage points to 2.5 percent of an employee's salary. Chancellor Angela Merkel's junior coalition partner, the Social Democrats, had hoped to stabilize pensions until 2040, but Heil said he was satisfied with the compromise,...

August 30, 2018
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30Aug

Russia. Putin softens pensions reform after his popularity ratings slip

The Russian president toned down the controversial proposals in a special address to the nation on Wednesday. He said women would be able to retire and claim their pensions at 60 instead of 63, as originally proposed - still a leap from the current age of 55. He also outlined several other concessions on the reform, although the changes to the retirement age for men, which will go from 60 to 65 in the new proposals, were unaltered. In a rare...

August 30, 2018
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29Aug

South African expats get access to international living annuity

South Africans living abroad and invested in South African retirement annuities (RAs) will be able to transfer their investment to a living annuity with full offshore exposure through investment group Sable International. On retirement, South Africans with RAs can take out a third as a lump sum and transfer the balance to a living annuity where they can draw down 2.5% to 17.5% per year. Their RAs were invested in portfolios with a maximum of 30% offshore exposure in terms of Regulation 28, and while this threshold does not apply to living annuities, most providers keep...

August 29, 2018
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29Aug

Theresa May In Africa: The Future Of Fintech In South Africa, Nigeria And Kenya

A delegation of UK fintech specialists joined Prime Minister Theresa May on her first official trip to Africa and will visit South Africa, Nigeria and Kenya to meet with entrepreneurs to establish trading and export ties in these emerging markets. Representatives from Azimo, the Financial Conduct Authority, Standard Chartered, Farm.ink, the London Stock Exchange Group and the Prime Minister’s Ambassador for Fintech were just some of the 29 leaders that accompanied May on the trip in order to forge connections...

August 29, 2018
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29Aug

The longevity dividend: how ageing populations could boost economic productivity

People are generally living longer than previous generations across most parts of the world. Rising life expectancy is a result of advances in medicine as well as improving living standards and healthier lifestyles. But while this should be celebrated for social reasons, is it beneficial in economic terms? Does the increase in the older population create an economic burden on society or can older people be mobilised to enhance the productivity of communities in which they work and live? New...

August 29, 2018
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29Aug

UK. ‘Give savers a bonus’ to prevent pension poverty

Millions of people have been put off saving for their retirement by the “incomprehensible” pension tax relief system, the think tank argues. It urges Chancellor Philip Hammond to scrap pension tax relief and replace it with a bonus system which would reward savers for building up funds for old age. Former pensions minister Baroness Altmann, a campaigner on retirement issues, last night warned that millions face poverty in old age unless the report’s warnings are heeded. “If we do not incentivise people...

August 29, 2018
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29Aug

The Kremlin pushes pension reform, but the Russian public pushes back

That was the year that the government's plans to reform the Soviet-era system of social benefits were derailed by mass disobedience from veterans and pensioners. It is probably the memory of those protests that has kept Russia from considering raising its pension ages for more than a dozen years. But now, the long-taboo issue of pension reform is back on the table. A law working its way through the State Duma, the lower house of parliament, would significantly raise the...

August 29, 2018
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29Aug

Poland announces new contribution plan for pensions

Under the program, employees, employers and the government will regularly contribute small amounts into individual accounts. The program, which is aimed at some 11.5 million people on job contracts who have little or no savings and is due to be launched next year, is intended to ease the pressure on the state-run retirement system, which is considered to be insufficient to meet future requirements. The program is the latest social policy change by the ruling Law and Justice Party that has...

August 29, 2018
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