July 2020

24Jul

US. COVID-19 Underscores Need to Address Retirement Savings Gaps

Addressing the 2020 NAPA D.C. Fly-In Forum this week, two members of the House Ways & Means Committee shared their thoughts on how the economic stress caused by the pandemic has shined a spotlight on the need to better align retirement savings incentives. “I actually believe, long term, the biggest issue for the United States is retirement security,” noted Rep. David Schweikert (R-AZ). “If you look at the U.S. demographics, we have so many of our Baby Boom...

July 24, 2020
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23Jul

Mexico Unveils Pension Reform Bill that will Boost Worker Pensions

Mexican workers will get a major boost in their retirement benefits after the government and private sector ironed out the details of a pension reform that is expected to become law by early next year, the Finance Ministry said on Wednesday. Read also Changes under Mexico’s planned pension reform The plan presented by Finance Minister Arturo Herrera sees pensions for the average worker rising some 40%, even as worker contributions to the pension system remain unchanged. "This is a big,...

July 23, 2020
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23Jul

Chile’s Senate approves pension reform law

Chile's Senate on Wednesday approved a measure allowing citizens to withdraw up to 10 percent of their pension funds to help mitigate the effects of the coronavirus pandemic. Read also COVID-19 Relief Packages Help Fuel Ultra-Low Interest Rates The bill, approved by a 29-13 vote with one abstention, will now return to the lower house Chamber of Deputies where it has already been given the green light for a final and decisive vote. Read also Covid-19 May Destroy Chile’s Iconic...

July 23, 2020
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23Jul

World Bank makes recommendations to improve pensions coverage in Ghana

“If a new or existing informal sector scheme is given sole responsibility for covering the cocoa farmers, economies of scale could be achieved. This will allow outreach to other groups of informal sector workers in a financially viable manner”, the World Bank asserted in its pensions coverage in the informal sector Africa report for 2019. However the World Bank report indicated that the coverage of the elderly through contributory pension schemes is not expected to improve. But the state...

July 23, 2020
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23Jul

WhatsApp to pilot projects to deliver credit, insurance and pension to users in India

WhatsApp plans to offer credit, insurance and pension products to lower-income individuals and those in rural areas in India and help digitize local small and medium-sized businesses as the Facebook service looks to make a digital payments push in its biggest market by users. The instant messaging app maker has been working with banks -- including ICICI, Kotak Mahindra and HDFC -- in India for the past year to explore ways to bring financial services to individuals who have...

July 23, 2020
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22Jul

UK. Impact of COVID-19 on life expectancy could reduce pension scheme liabilities by up to £90bn

Impact of COVID-19 on life expectancy could reduce pension scheme liabilities by up to £90bn New XPS forecasting shows long-term vulnerabilities in pension schemes following the pandemic. In some scenarios the long-term economic impact of COVID-19 on life expectancy could be 50% higher than the short-term impact of the pandemic. The economic impact on schemes' assets is also a significant consideration. Especially for those schemes holding growth assets and/or with low hedging ratios. Read also UK. Cybercrime and Pensions...

July 22, 2020
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22Jul

COVID-19 Relief Packages Help Fuel Ultra-Low Interest Rates

The European Insurance and Occupational Pensions Authority (EIOPA) has warned that the current ultra-low interest rate environment—which it said is being fueled by the COVID-19 pandemic and the resulting economic relief packages—represents a key source of systemic risk for insurers for the future. EIOPA said in a recent report that the COVID-19 pandemic and central banks’ response measures to alleviate the impact on the economic activity will contribute to the continuation of the low interest rate environment. It also...

July 22, 2020
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22Jul

Covid-19 May Destroy Chile’s Iconic Pension System

If last year’s national convulsion wasn’t enough to break up Chile’s romance with market-friendly technocracy, the spreading civic choler over the miseries brought on by the coronavirus pandemic may finish the job. Yes, President Sebastian Pinera’s speedy measures to combat the outbreak and pump the economy with emergency funds for the most vulnerable households gave the besieged government a breather. Yet the recent 95 to 36 vote by the Lower House to allow Chileans to raid their private pensions...

July 22, 2020
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22Jul

US considers restricting ESG in pensions

The US Department of Labor (DOL) is considering imposing strict rules on how pension funds invest, which could see the scope for ethical and responsible investing limited. The DOL has proposed an amendment to the Employee Retirement Income Security Act 1974 (ERISA) "to confirm that ERISA requires plan fiduciaries to select investments and investment courses of action based solely on financial considerations relevant to the risk adjusted economic value of a particular investment or investment course of action." The...

July 22, 2020
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21Jul

Taiwanese planning for retirement earlier than four years ago: survey

A survey released Monday showed that Taiwanese people are saving money or making investment plans in preparation for life after retirement earlier than four years ago as they have less confidence in the deficit-ridden government pension program. According to the survey, conducted by National Chengchi University's (NCCU's) Department of Risk Management and Insurance and Taiwan Life Insurance Co., respondents said they would start saving money for retirement at an average age of 37.87, compared with 43.29 in the...

July 21, 2020
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