May 2018

29May

Investor group looks to connect bottom line to green, social factors

Some of Canada’s largest institutional investors are preparing a fresh push on companies to adopt strategies, risk management and disclosure practices to address the bottom-line impact of environmental and social factors such as the socio-economic impact on communities. The Canadian Coalition for Good Governance — an umbrella organization whose members, including the Ontario Teachers’ Pension Plan Board, RBC Global Asset Management Inc. and Franklin Templeton Investments Corp., manage nearly $4 trillion in assets — is unveiling an eight-point plan on...

May 29, 2018
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29May

Akropolis Aims to Defuse the Pension Time Bomb with Blockchain

The global state pension industry is in dire straits. Many pension programs around the world are grossly undercapitalized and moving swiftly towards insolvency. For example, the Russian Pension Fund deficit is forecasted to double in 2018, while the combined shortfall in funding public pension obligations in 20 OECD countries amounts to $78 trillion, according to a Citibank report. This situation threatens to strip millions of people of their hard-earned benefits in their old age. Globally, the retirement-age population will grow...

May 29, 2018
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29May

UK. Pension advisers are charging high fees for cheap funds

Pension drawdown investors are being short-changed by advisers who recommend cheap tracker funds but charge higher fees typically paid for a more diversified portfolio. Provided that the risk profile of the investment matches that of the client, such advice is not technically wrong and, on the surface, appears cost-saving. But it also allows the adviser to extract more fees for less work. Simon Williams (not his real name), 60, is one such client. The accountant wishes to remain anonymous because his...

May 29, 2018
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29May

Australia floats shake-up of $2 trillion pension system, “zombie” insurance

Fund managers who perform poorly face being locked out of Australia’s A$2.6 trillion ($1.96 trillion) pension industry if recommendations from the government’s top economic advisory body are implemented. The Productivity Commission said in a report on Tuesday that a shortlist of up to 10 strong-performing pension products, chosen by an independent panel, should be presented to workers from which to choose when they enter the workforce. If adopted, the Commission’s model would replace a system whereby the employer chooses a fund...

May 29, 2018
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28May

Tax cuts hasten demise of US corporate pensions

FedEx just spent $6 billion buying an annuity from MetLife. It's joining a growing list of U.S. companies offloading pension obligations. Lower U.S. tax rates are encouraging more firms to do the same. It's good for older workers, but it's another nail in the coffin of employer-provided retirement security for millennials. December's corporate tax cuts make it easier for FedEx and others to do just that. Companies can take a tax deduction on pension contributions at the old 35 percent...

May 28, 2018
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28May

US tech giants don’t just have your data – they are in your pension too

The population of the US, at 325 million, makes up just over 4% of the world’s total population. But its stock market, fuelled by the rise of Apple, Google, Amazon and Facebook, comprises 60% of the value of all shares traded on the planet. The Dow Jones index of Wall Street-traded companies stood at 16,000 in early 2016, but is about 25,000 now. And the Nasdaq index of tech shares has nearly doubled in just two years. Together, Apple,...

May 28, 2018
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25May

What is the Future of Pensions in the UK?

The future of pensions in the UK appears bleak at present, as sustained austerity measures and issues and incrementally rising life expectancies continue to stretch state resources beyond their means. This was borne out in last year’s announcement that the government were considering increasing the retirement age for both men and women to 68 ahead of schedule, in order to reduce the average length of retirement and provide some much needed respite. But what exactly does the future of pensions look...

May 25, 2018
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25May

Financially stressed workers likely to draw on retirement plans

Financial stress is taking its toll on employees, causing them to partake in rather risky money behavior: tapping into their 401(k) or other retirement savings in an attempt to get back on track. More than half of workers (54%) who identify as being financially stressed say they will likely use their retirement funds for expenses other than retirement, according to PwC’s 2018 Employee Financial Wellness Survey, out this week. That’s compared to 33% of their colleagues who say they’re not...

May 25, 2018
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24May

Ireland. Pension tax relief cut could save €1bn a year – ESRI

A State-supported think-tank has questioned the level of tax relief given to people for saving for a pension. An Economic and Social Research Institute (ESRI) paper found that high-income households are the big winners from the tax treatment of pension contributions. It says cutting the tax relief for putting money into a pension should be considered. Read More: Independent

May 24, 2018
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