October 2019

21Oct

Irish pensions need urgent reform, industry specialist says

Irish pensions, which lag in the international rankings when it comes to sustainability, need urgent reform as the ratio of workers to retirees is set to fall dramatically over the next three decades, according to human resources consultancy Mercer. While the 2019 Melbourne Mercer Global Pension Index (MMGPI) , published on Monday, has found that Ireland stands in first place for adequacy of expected pension benefits, given the “comparatively generous” State pension, it only ranks 27th when it comes...

October 21, 2019
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21Oct

Croatia: retirement without peace

Most retired people in Croatia receive the standard pension, which for July was 2,228 kuna (€300). 15,546 retired people receive a pension of less than 1,000 kuna. Adding those who receive pensions in between the two amounts we arrive at the number of 586,613 persons with an income lower than 2,228 kuna, or 55.31 percent of retired people. Peace in retirement clearly still needs to be fought for. There is a whole series of problems with the Croatian pensions...

October 21, 2019
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21Oct

South Africa’s PIC to Mull Options to Ease Eskom Debt: Times

South Africa’s Public Investment Corp., the continent’s largest fund manager, will meet in November to consider options on how to help embattled state-run power utility deal with its debt, Sunday Times reported, citing PIC Chairman Reuel Khoza. A strategy meeting would look at how the asset manager could “come to the rescue or assist” Eskom Holdings SOC Ltd., the newspaper cites Khoza saying. The PIC would make sure “value of pensioners doesn’t get frittered away” if it steps in...

October 21, 2019
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21Oct

European private pension industry hit by negative returns in 2018

Savers across Europe with private pension plans endured a miserable year for performance in 2018 with widespread negative returns raising more concerns about the health of retirement systems across the region. Voluntary privately funded pension plans, known in industry jargon as Pillar III schemes, delivered net real returns (after charges and inflation were deducted) in 2018 ranging from minus 9.8 per cent in Estonia to a whisker above zero in Austria, according to Better Finance, the investor rights campaign...

October 21, 2019
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18Oct

Dutch pension pots stand out among global retirement funds

The world’s rich nations face a double-whammy, with ageing populations meaning more retirees — just as low and negative interest rates make it harder for pension funds to secure the investment returns needed to fill up their coffers. Read also PLSA 2019: Fintech could play key role in decumulation phase Pensions typically have three pillars: a basic state payout designed to prevent people falling into poverty once they stop work; a larger slice related to lifetime earnings; and voluntary top-ups...

October 18, 2019
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18Oct

Asia behind in sustainable investments, but attitudes are changing, industry leaders say

Asia lags behind Europe and other regions in constructing investment portfolios that consider environmental and social factors along with returns, despite rising demand for such products among investors globally, according to industry leaders. But, that is beginning to change as more and more funds are shifting to so-called environmental, social and governance (ESG) strategies in Japan, and China will require listed companies and bond issuers to disclose environmental and social risks in their businesses beginning in 2020, they said....

October 18, 2019
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18Oct

Pensioners sleep outside Zimbabwe banks as savings vanish again

As hundreds of pensioners line up outside a bank in central Harare in the hope of collecting their pensions, military veteran Elias Nyabunzi has a sense that he has seen this all before. If there is cash available, he will collect the equivalent of just $26, down from the $400 he was getting a few months back. A decade ago when he went to collect the lump sum he was also entitled to after 25 years in the army...

October 18, 2019
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18Oct

PLSA 2019: Fintech could play key role in decumulation phase

Fintech solutions such as online platforms and calculators could play an imperative role in helping mitigate savers' risks in the decumulation stage of their pension saving. In a panel discussion at the PLSA 2019 Annual Conference, industry experts explained that fintech could play a more important role in the decumulation stage than the accumulation phase. In response to an audience question, Aviva pensions proposition manager, Stephen Jackson said: “To some extent, fintech is more important in the decumulation stage...

October 18, 2019
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18Oct

Introducing a universal pension to Zanzibar

In older age, as health challenges limit people's ability to work, fewer women and men can secure a reliable, sufficient income to ensure they meet their day-to-day needs in later life. Many older people, particularly those who are poorer, must remain economically active to get by as they have limited options for income. Work in older age is mainly in the informal sector, which tends to provide lower and more volatile incomes. Without systems to ensure income security as...

October 18, 2019
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17Oct

The IMF Just Issued a Warning About Stretched Valuations, Pension Risks, and Rising Corporate Debt

As more of the world moves toward lower rates, investors, including pension funds and insurers, have pushed into riskier and more illiquid investments, stretching valuations, according to a report released Wednesday by the International Monetary Fund. Read also Pension Funds Sink Billions Into a Whole New World of Risk About 70% of economies globally have moved toward a more-accommodative monetary stance. Interest rate cuts from the Federal Reserve and others have bolstered stock markets and cushioned some of the blow to global...

October 17, 2019
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