December 2024
13Dec

UK. DC retirement expectations fall for young savers amid ‘flat’ investment returns

The expected future living standard in retirement provided by defined contribution (DC) savings fell for young savers in Q3, following "flat" investment returns, Aon’s UK DC pension tracker has revealed. The youngest saver’s expected income in retirement decreased by around £170 p.a. (0.5 per cent), driven by the increase in expected inflation and a decrease in the expected future investment return assumptions post-retirement. An increase in future expected return assumptions before retirement partially offset these decreases. However, older savers’ expected retirement...

December 13, 2024
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13Dec

China Expands Private Pensions Nationwide Despite Challenges

China is expanding its private pension fund pilot program nationwide to address retirement payout strains. The limitations of the experiment are already on display. Disappointing fund performance and a lack of investor interest are just some of the difficulties that private pension funds have encountered after China rolled out the program in 36 cities since 2022. The program allows workers to contribute as much as 12,000 yuan ($1,650) to tax-sheltered accounts similar to Individual Retirement Accounts in the US. It was...

December 13, 2024
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13Dec

A Checklist for Retiring in 2025

Only you can know if you're ready for a checklist for retiring in 2025. If you’re 60 or getting there, retirement is no longer a hazy concept in the distance. It’s a real deadline. In five or six years, or maybe just a year. Or six months. Or even six weeks. You are going to leave your full-time job, not for a new phase in a working career, but for a largely unknown future. Ideally, you’ve prepared financially and otherwise...

December 13, 2024
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12Dec

How climate change will impact pension fund investment portfolios

Failure to transition to a low-carbon economy could cost pension schemes up to 30% in investment losses by 2050, according to new research. Analytics and risk management firm Ortec Finance analysed the investment portfolios of 30 large UK pension schemes based on exposure to climate change risks. It modelled seven different scenarios for the global transition away from fossil fuels and towards renewable energy sources, and found that real estate and listed equities were the most vulnerable asset classes if any...

December 12, 2024
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12Dec

November Sees Another Gain in Corporate Pension Funded Status

The funded ratios of defined benefit corporate pension plans in the U.S. rose in November, with strong market returns offsetting a drop in discount rates, according to tracking by some of the country’s largest pension consultancies. Milliman Inc., which tracks 100 of the largest corporate pension plans through its monthly index, reported that funded ratios rose to 103.5% as of November 30, outdoing the end of October’s 103.2%. The average market gains of 1.88% lifted the value of the plan assets Milliman tracks...

December 12, 2024
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12Dec

Just 19% of UK savers have factored getting a serious illness in to their retirement plan

Just a fifth of UK savers (19%) have fully considered getting a serious illness in their retirement plan, according to research by consultancy Barnett Waddingham. Its At retirement reckoning report, which surveyed more than 5,000 UK employees, also found that 25% of respondents under the age of 50 have prepared for this possibility, compared to just 16% of those aged over 50. Two-fifths (43%) of this older age group have thought about it but not included it in their retirement planning, and 32%...

December 12, 2024
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12Dec

Morningstar Drops Recommended Safe Withdrawal Rate to 3.7%

Morningstar Inc. has lowered what the investment research firm considers a safe retirement savings withdrawal rate for new retirees based on a 30-year outlook, according to the firm’s annual “State of Retirement Income” report released Wednesday. To decide on the recommended withdrawal rate, Morningstar researchers considered forward-looking asset class returns and inflation assumptions for new retirees, excluding what they may be getting from Social Security or other nonportfolio income sources such as a company pension. In that forward-looking analysis, the authors...

December 12, 2024
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11Dec

Immigration and Waning US Labor Force Growth

The growth of the working age population born in the United States has been slowing since 2000, as increasing numbers of native-born workers have been reaching retirement age while smaller generations of young Americans enter their working years. Since 2020, the size of the population aged 18-65 that was born in the United States has actually shrunk. The decline has been most pronounced among non-college educated workers. Corresponding to this decrease in labor supply, unfilled job vacancies and labor...

December 11, 2024
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11Dec

AllianzGI Approved for China Pension Firm Stake

The investment arm of Allianz has been approved to become the first foreign asset manager to own a stake in China’s pension insurance company. Allianz Global Investors has received regulatory approval for investment in a 2 percent stake in Guomin Pension & Insurance Company, according to a statement. This makes it the first foreign asset manager to own a stake in the pension insurer. AllianzGI has been approved to subscribe to around 228 million newly issued shares in Guomin Pension worth approximately...

December 11, 2024
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11Dec

Zimbabwe. Government urged to incentivise informal sector formalisation

ANALYSTS and other key business players have implored the Government to invest more in incentivising informal sector players to transition into formal business operations to enhance economic stability and improve tax revenues. Mr James Wadi, an economic analyst said this while giving an appraisal of the 2025 National Budget at the post–budget breakfast meeting hosted by Business Weekly in collaboration with the Confederation of Zimbabwe Industries (CZI) and the Ministry of Finance, Economic Development and Investment Promotion on Monday. Zimbabwean products Mr...

December 11, 2024
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