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...
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...
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...
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...
The City of Boston is ending its relationship with Fisher Investments, pulling $248 million in pension assets from the firm. Mayor Martin Walsh announced on Wednesday that the city would stop working with the company in light of sexist comments Ken Fisher had made at an investment conference last week. “The statements made by Ken Fisher implicate not only his own judgment, but potentially that of the company as a whole,” Walsh wrote in a letter to the Boston Retirement Board....
Pension providers that fail to provide data for the pension dashboards could be fined up to £50,000 by The Pensions Regulator, according to the proposed legislation underpinning the project. Part of the Pension Schemes Bill is devoted to the creation of a framework to support the dashboard project, including new rules to compel pension schemes to provide accurate information to consumers. According to the 187-page document, published yesterday (October 16), the regulator will have powers to issue compliance notices and penalty notices to parties that don’t...
The Thinking Ahead Institute, which is based in London, said that retirement systems around the world are on the cusp of significant change. Challenges the research identified when it comes to defined contributions include coverage, adequacy, technology, a lack of trust and a lack of engagement with participants. The research argues that a new version of defined contributions is emerging, to be characterised by hyper-customisation and integrated whole-of-life wealth management. "The system needs to move beyond its role as...
At long last, the Government has secured an exit deal with the European Union. Prime Minister Boris Johnson said this morning he has secured a “great new deal” with the EU which “takes back control”. There is still a long way to go before it is agreed – the details are currently not clear, the legal wording is still being worked on and the deal will need to be passed by both the EU and British parliament – but it is undoubtedly a step forward. The key benefit...
Population ageing is often associated with health-related challenges. But its effects also reach other spheres of life. In particular, an ageing population has a big impact on countries’ economies. Research shows how it can influence a country’s economic growth. And a similar effect can be found at the household level. Read also UK. Queen’s Speech: Govt announces Pensions Bill This is of greater relevance given there is a greater share of the population reaching older age across the world. This...
The East African Venture Capital Association (EAVCA) in partnership with Financial Sector Deepening Africa (FSD Africa) and International Finance Corporation (IFC) have launched an investment guide to enable regional pension schemes to invest in Private Equity (PE) Funds. Named Private Equity Investment Guide, the objective of the tool is to deepen the understanding of Private Equity structures among Pension Fund Managers and their Trustees to unlock more investment into the asset class. The guide mainly covers three key areas...
