October 2020

15Oct

PFA reports new fall in CO2 emissions, drops some oil and gas firms

Fund says equity portfolio emits 21% less CO2 per million USD invested than MSCI world index Denmark’s largest commercial pension fund, PFA, has announced a significant reduction in the carbon footprint of its equity portfolio in the first six months of this year – a period in which it now reveals it sold several oil and gas equities. The DKK599bn (€80.5bn) pension fund said the latest climate review of its equity portfolio shows that at the end of June, the...

October 15, 2020
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15Oct

5 retirement security risks that 2020 made worse

Retirement security was already on shaky ground when the calendar turned to January 1, ushering in a year of unprecedented and unexpected challenges that have compounded threats to global retirement security. According to Natixis Investment Managers’ 9th annual Global Retirement Index, the challenges of 2020 have disrupted financial markets, caused widespread unemployment and demanded urgent response from policy-makers, all of which could have long-reaching impacts on retirement security. The goal of the index is to provide an objective tool for...

October 15, 2020
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15Oct

Swiss pension schemes face arms financing ban campaign for referendum

The ban should apply to manufacturers of all kinds of war materials worldwide, including tanks, air defense systems, pistols and other components Swiss Pensionskassen will have to face a popular vote on 29 November on curbing the financing of companies producing arms used in global conflicts. The referendum is the result of an initiative by Young Greens, the younger faction of the Swiss Green Party, and the group Switzerland without arms (GSoA). The initiative wants to prevent the Swiss National...

October 15, 2020
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15Oct

US. Real estate investments cost NYC pension funds $370M

In a big investment portfolio, some part of it will inevitably underperform. For the city’s biggest pension fund, that part has been private equity real estate. The New York City Employees’ Retirement System ramped up its exposure to that category, only to see it underperform the stock market by $260 million and rack up at least $110 million in fees between 2016 and 2019, New York Focus reported. During those years, the fund increased its portfolio in private equity...

October 15, 2020
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14Oct

US. Deaths of despair: Not everyone benefits from the ‘longevity economy’

America recently passed a grim milestone of over 210,000 COVID-19 deaths, with little hope the pandemic will come under control soon. While the coronavirus has been devastating to those who’ve lost loved ones, it has also exacted a vicious toll on a particular group of older Americans: lower-wage workers, minorities and women who have labored for decades in jobs with unstable incomes and without employee benefits. Read also 5 retirement security risks that 2020 made worse We hear a lot...

October 14, 2020
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14Oct

Ireland. State pension age will not rise in January, Minister confirms

The state pension age will not rise to 67 next January, the Minister for Public Expenditure and Reform, Michael McGrath confirmed in his budget speech. “I can confirm to the House that, in line with the Programme for Government commitment, the planned increase in the pension age to 67 on January 1st, 2021 will not proceed,” the Minister said. He said that a Pensions Commission would be established in line with the Programme for Government and the Government would...

October 14, 2020
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14Oct

U.K. corporate deficits worsen in September

Deficits also worsened for the year ended Sept. 30, from £117.6 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 to 91.4% as of Sept. 30, down from 92.6% as of Aug. 31. The funding ratio was 93.6% as of Sept. 30, 2019, the update said. Assets were up 0.94% during the month...

October 14, 2020
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14Oct

Does NZ spend less on pensions than most wealthy countries?

AAP FactCheck Investigation: Does superannuation cost New Zealand 4.4 per cent of GDP each year – and is this low by international standards? THE STATEMENT “The reality is we are way below the international cost of superannuation, we are about 4.4 per cent of GDP.” Winston Peters, New Zealand First leader and deputy prime minister, October 8, 2020. THE ANALYSIS New Zealand First leader and deputy prime minister Winston Peters has defended the cost of New Zealand’s superannuation scheme,...

October 14, 2020
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13Oct

Will emigrating South Africans be allowed to withdraw their retirement savings?

We have come a long way since publication of the draft tax Bills on 31 July this year, and on 7 October 2020, the Standing Committee on Finance (“the Committee”) heard oral submissions on the proposed tax amendments. As one of the few tax firms who made oral submissions to Parliament, we can confirm the most debated amendment remains the one around government’s intention to impose a three-year lock-in period on retirement funds when a person emigrates. Background...

October 13, 2020
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13Oct

UK. Risk settlement market could reach £50bn by end of 2020: Aon

Global insurance and reinsurance brokerage, Aon, predicts that the risk settlement market could still reach £50 billion by the end of 2020. The 2020 result for the risk settlement market, including both bulk annuities and longevity swaps, could make it a record year, despite the difficulties that have arisen from the COVID-19 pandemic. Whilst Aon’s risk settlement team has seen fluctuating levels of market activity during the past nine months, it expects to see a late surge in deal...

October 13, 2020
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