November 2020

30Nov

COVID-19: How do pension systems fare?

Saving for retirement is the primary investment objective for most individuals. Yet the ability to meet this objective depends not only on the investments made, but on the system on which retirement income provision rests. Put simply, how well a pension system is designed, including the level of benefits it provides, its sustainability, and its governance, has a critical bearing on the ability to meet one’s retirement goals. Pension funds, as some of the biggest institutional investors in financial...

November 30, 2020
News, Slider, ,
Read more...
27Nov

U.K. clarifies timeline for reform of inflation measure

Investment consultants and the Pensions and Lifetime Savings Association welcomed clarity over the future use of the retail price index to calculate U.K pension benefits and liabilities, but warned that the change will still be detrimental to participants. Chancellor of the Exchequer Rishi Sunak announced Wednesday that the RPI calculation of inflation will be reformed to bring it into line with another measure of inflation — the consumer price index — starting in 2030 at the earliest. The change...

November 27, 2020
News, Slider, ,
Read more...
27Nov

Five reasons to invest in pensions technology

The world has changed exponentially in 2020, leading many multinationals to ask valid questions about how they can enhance their global operations. As a significant expense for any business, pensions and benefits have come into the spotlight. Read also With more childcare and domestic work, the pandemic poses a ‘real danger’ to women’s progress, UN finds More than ever, the pressure is on for benefits teams to demonstrate that they are taking steps to minimise spend and avoid curbing...

November 27, 2020
News, Slider, , ,
Read more...
27Nov

With more childcare and domestic work, the pandemic poses a ‘real danger’ to women’s progress, UN finds

Since the onset of the coronavirus pandemic, women have been bearing the brunt of extra childcare duties and unpaid domestic work, a study by the United Nations (UN) has found. Women in a number of countries around the world have been spending around 31 hours on average a week on childcare, the study by the UN’s gender equality body, UN Women, found. This was an average 5.2 hours a week more than pre-pandemic time spent on childcare,...

November 27, 2020
News, Slider, ,
Read more...
27Nov

UK. State pension rise will go ahead in 2021

State pensions will rise by 2.5 per cent next year, the government has announced. In her statutory annual review of benefit and State Pension rates, Therese Coffey, secretary of state for work and pensions, confirmed the state pension hike, in line with the government’s manifesto commitment not to tinker with the triple lock. The new rates will come into effect on April 12, 2021 and apply to the 2021/22 tax year. She said: “The Social Security (Up-rating of Benefits)...

November 27, 2020
News, Slider, ,
Read more...
26Nov

In unprecedented move, Canadian pension funds unite to call for greater ESG standards

In an unprecedented move, some of Canada’s largest institutional investors have banded together to ask companies for more rigorous disclosures of environmental, social and governance factors, an effort they say is meant to promote more sustainable and inclusive economic growth. Read also Swedish pension giant and LGIM launch sustainable EM equity fund A group of eight pension funds, which together manage a total of about $1.6 trillion in assets, called on corporations in a joint statement Wednesday to standardize their...

November 26, 2020
News, Slider, , , ,
Read more...
26Nov

UK. Millions face cut in value of workplace pensions

Millions of retirees will see the future value of their pension cut owing to a planned change in the way payments are calculated from 2030. Many of those with so-called defined benefit workplace pensions see their pension payments increase each year in line with the rising cost of living. Read also U.K. clarifies timeline for reform of inflation measure The way this annual rise is calculated is expected to become less generous from February 2030. Chancellor Rishi Sunak ruled out...

November 26, 2020
News, Slider, ,
Read more...
26Nov

Switzerland. Government hopes for ‘first successful pension reforms’ of the century

In summer 2019 the social partners agreed on a reform of the Swiss occupational pension scheme. The government on Wednesday adopted this compromise unchanged; the ball is now in parliament’s court. Occupational pensions have been under pressure for a while as a result of rising life expectancy and low interest rates. Following the rejection by voters of the pension reform in September 2017, the government tried again, focusing on the second pillar (based on occupational pension plans and accident...

November 26, 2020
News, Slider, ,
Read more...
26Nov

Swedish pension giant and LGIM launch sustainable EM equity fund

Swedish pension fund AP1 and LGIM have collaborated to launch a new EM equity fund. The L&G Emerging Market Equity Future Core fund will link the allocation of capital to clear sustainability requirements for companies it will invest in. The rationale behind the launch is to meet institutional investors’ need for index-linked funds with an extended sustainability profile. According to AP1, the need for this kind of product has increased as more investors choose passive or index-linked management models....

November 26, 2020
News, Slider, , ,
Read more...
25Nov

Saving pensions and COVID-19

Robust pension policies are crucial for safeguarding political and social stability in a rapidly ageing and changing world, Odusote Fatimah Abolanle and Alfred Muluan Wu write. With the COVID-19 pandemic grinding almost every sector of the global economy to a standstill, many governments have had to reform policy to buffer the health and economic shocks their citizens are going through, including pensions and social security. This unprecedented paradigm shift has exposed existing gaps in pension policies. Although some principles...

November 25, 2020
News, Slider, ,
Read more...