July 2019

24Jul

Australia. There is a problem with retirement incomes, but it isn’t the super guarantee

There is a case for not proceeding with, or at least further deferring, the legislated increase in employers’ compulsory superannuation contributions from 9.5 per cent to 12 per cent. But the Grattan Institute’s latest analysis, published in The Conversation and elsewhere, does not make this case. Rather, it demonstrates extremely well a totally different problem with our retirement incomes system, and falsely ties it to our 9.5 per cent so-called “super guarantee”. That problem is that the pension assets...

July 24, 2019
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24Jul

US. How The Decline Of Pensions Furthered The Racial Wealth Gap

The gulf between those who will enjoy their golden years and those who will struggle is growing. An ever larger number of American workers will have to make large and painful cuts in their standard of living after they stop working. The retirement crisis comes on the heels of declining defined-benefit (DB) pensions. Riskier and costlier defined contribution (DC) accounts such as 401(k)s and IRAs have taken their place. At the same time, the workforce has changed as non-white...

July 24, 2019
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24Jul

Two funds merge to form Australia’s second-largest pension fund

First State Super and VicSuper said on Tuesday that they have signed a binding deal to merge, creating Australia's second-largest pension fund as regulatory pressure drives consolidation. The new superannuation, or retirement, fund would have about A$120 billion (S$115 billion) in assets under management servicing over 1.1 million workers, the nonprofit funds said in a joint statement. AustralianSuper is the largest, managing about A$160 billion. A merger was a "proactive step for the two funds, and one that's very...

July 24, 2019
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23Jul

Canada. Unique retirement planning strategies needed for defined-benefit pension plan members

For people who have a defined-benefit (DB) pension plan through their employers, years of compulsory saving may eliminate much of the uncertainty around how much to set aside for retirement. But these pension plans are only part of an overall financial picture and can be subject to change, underscoring the need for financial advisors to prepare their clients for all possibilities. According to recent data from Statistics Canada, DB plans accounted for two-thirds of registered pension plans in 2017....

July 23, 2019
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23Jul

How UK finance is navigating sustainability

These are exciting times in UK sustainable finance as the sector prepares to capitalise on a series of opportunities. The UK sustainable fund management sector is already Europe’s largest with Eurosif data showing that in 2017 nearly £2 trillion of assets was managed using a variety of sustainable finance strategies. Further growth will be driven by new factors. Firstly, regulation is increasingly supportive. Changes to UK pension regulation mean most trust-based schemes will have to start disclosing their policies...

July 23, 2019
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23Jul

A good retirement plan? Try leaving gradually, instead of all at once

Because demography is destiny, more older people than ever are working in America, with a lot more to come. The question is how best to get there? One idea gaining traction is “phased retirement,” which lets workers gradually cut their hours and responsibilities while remaining on the job. The longer tenure improves their financial outlook and often provides social and emotional benefits. For employers, it’s a way to hold on to senior talent and institutional knowledge, which are...

July 23, 2019
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23Jul

US. Bernie Sanders Introduces “Right to a Secure Retirement” Plan

Independent senator and 2020 Democratic candidate Bernie Sanders unveiled his “right to a secure retirement” plan Friday. The plan includes expanding Social Security; protecting pensions; guaranteeing housing, food assistance and care for seniors; and providing fully covered healthcare through Medicare for all. Sanders introduced the plan as he and 16 other Democratic hopefuls participated in the AARP presidential forums in Iowa over the past week and weekend. Read more @Democracy Now

July 23, 2019
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23Jul

Zambia. Government proposes to hike NAPSA contributions, abolishes private pension schemes

The PF Government has proposed to increase pension contributions to the National Pensions Scheme Authority from the current 5% to 10%. Currently, the employer and the employee contribute 10% of their gross monthly earnings to NAPSA, a mandatory pension scheme. According to a proposal from the Ministry of Labour and Social Security, their monthly contributions will rise to 10% employer and 10% employee. The proposal also seeks to limit the pension schemes allowed to exist in Zambia to have...

July 23, 2019
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22Jul

US. What Congress Could Do To Stop a Pension Crisis

A looming retirement crisis is facing the U.S. taxpayer that will become an economic tsunami if Congress doesn’t act. The pensions of 1.3 million workers in certain multiemployer pension plans and the federal government’s Pension Benefit Guaranty Corporation (PBGC) are set to collapse. Only Congress can prevent this from cascading throughout the economy, to taxpayers and into healthy pension plans and their employers. How things spiraled into this crisis is complicated, but important to understand. Some say it’s a...

July 22, 2019
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22Jul

Canada’s pension fund OMERS seeks new green energy deals

Canadian pension fund Ontario Municipal Employees’ Retirement System (OMERS) is scouting for acquisition opportunities in India, in an affirmation of the country’s position as a green energy hot-spot. With net assets of more than $100 billion under management, OMERS has been attracted by the presence of other Canadian investors in India such as Canada Pension Plan Investment Board (CPPIB), Caisse de dépôt et placement du Québec (CDPQ) and Brookfield Asset Management. This comes at a time when India’s emerging...

July 22, 2019
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