September 2020

11Sep

US. The crisis of multiemployer pension plans: Where do we go from here?

It is no secret that many multiemployer pension plans are struggling – paying out substantially more in benefits to retirees than the income they are receiving. Without legislative action, many are expected to go bankrupt in the next 5 to 15 years, leaving current retirees and active employees without the retirement income they expected. To understand where we go from here, let’s first explore the history of multiemployer plans, then look at potential avenues for reform. How...

September 11, 2020
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11Sep

UK:Workers ‘more at risk’ as they want to work past retirement date

A global retirement survey conducted in 15 countries by Aegon has revealed that workers in Britain could be exposed to lifestyle-changing financial risk later in life as a result of the COVID-19 pandemic. According to the survey, workers in the UK are less likely to want to retire earlier than planned but almost a third of them have no back-up plan in case they are unable to do so due to ill health. Only about 30% have a...

September 11, 2020
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10Sep

Spanish Government looking at incentives for delaying retirement

The Spanish Government is looking at providing incentives for those who carry on working after the age of 65 while taking steps to stop high earners from taking early retirement. Read also Greece.Pay as you go for auxiliary pensions In his appearance on Wednesday before the Toledo Pact parliamentary commission, Inclusion and Social Security minister Jose Luis Escriva said his department’s intention is to encourage people to delay their retirement. through a redesign of the extra payments for those who...

September 10, 2020
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10Sep

South Africa. There’s a pensions train smash coming: Magnus Heystek

South Africa is facing a ‘pensions train smash’, says Magnus Heystek, director of Brenthurst Wealth Management, as a number of factors including the poor JSE, a weak economy and new regulations are set to collide. Heystek said in a webinar on Wednesday (9 September), that this collision course is the result of a number of problems in the wider pensions industry which have been building for years. He added that ordinary South Africans are starting to see the problems...

September 10, 2020
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10Sep

US. Pension fund, MIT launch social investing project

The Massachusetts state pension fund is teaming up with the MIT Sloan Sustainability Initiative to try to improve the data available to investors who want to make decisions based on things like the way a company treats its workers, its carbon emissions or its product safety record. As socially responsible investing expands rapidly across the globe, the Aggregate Confusion Project with the Pension Reserves Investment Management Board aims to cut through the noise around Environmental, Social, and Governance (ESG)...

September 10, 2020
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09Sep

£15bn boost if UK scraps pensions triple-lock, says think tank

An industry think tank has said that replacing the pensions triple lock with “earnings smoothing mechanism” could save up to £15bn ($19.56bn, €16.59bn) from the covid-19 bill. But the Pensions Policy Institute (PPI) added that this would reduce average state pension income by 2% from 2021. The triple lock means the state pension increases by the highest of the increase in average earnings, inflation or 2.5%. This comes as rumours continue over the future of the pensions triple-lock, with chancellor...

September 9, 2020
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09Sep

US. What has COVID-19 done to our retirement savings?

COVID-19 has disrupted life as we knew it, upending our daily lives, threatening the health of many, and exacerbating the financial stress already facing many families. The short-term impacts have been substantial and have received considerable attention, but we should not lose sight of the potential for long-term financial consequences, especially on retirement security. Read also US. DOL´S mixed message for plan sponsors Short-term relief, long-term consequences As millions of Americans found themselves out of work and many small businesses...

September 9, 2020
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09Sep

Australia. Super must not become a meagre pension: Labor

Superannuation should not replace a meagre government-funded pension for a meagre privately-funded one, Labor's financial services spokesman Stephen Jones will argue on Wednesday. He will also demand that the government release its long-awaited retirement income review to provide better information in the current debate on superannuation. In a speech to the Association of Superannuation Funds of Australia, Mr Jones will say that by 2065, there will be about three workers for every one retired person, down from a ratio of...

September 9, 2020
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09Sep

Using behavioral insights to make the most of emergency social protection cash transfers

In response to the COVID-19 pandemic, countries across the globe have been adapting social assistance policies to support their populations. In fact, since March 2020, 139 countries and territories have planned, implemented, or adapted cash transfers to support their citizens. Cash transfers specifically make up about half of the social protection programs implemented to address the pandemic. Now more than ever, it’s crucial that such programs are designed to maximize impacts. Behavioral insights can be mobilized as a cost-effective...

September 9, 2020
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08Sep

Managers Of $40 Trillion Make Plans To Decarbonize The World

The Institutional Investors Group on Climate Change (IIGCC) is a European group of global pension funds and investment managers, totaling over 1,200 members in 16 countries, who control more than $40 trillion in assets (€33 trillion). They have drawn up a plan to cut carbon in their portfolios to net-zero and hope other investors will join them. Read also One of Sweden’s Biggest Investors Starts ESG Pressure Campaign The group’s mission is to mobilize capital for a global low-carbon transition...

September 8, 2020
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