May 2019

22May

Peru – New Law establishes a special early retirement regime for the unemployed in the private pension system

On 3 May 2019, the ‘Law establishing a special early retirement regime for the unemployed in the private pension system’ (Law 30939) was published in the Official Gazette ‘El Peruano’. The main provisions of the Law are set out below. At the time of applying for the benefit, men must be at least 55 years of age and women 50. To request it, they must have been unemployed for 12 consecutive months or more, and prove the date of...

May 22, 2019
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21May

US. The Coming Pension Crisis Is So Big That It’s A Problem For Everyone

By John Mauldin (President of Mauldin Economics) A decade ago I pointed out that public pension funds were $2 trillion underfunded and getting worse. More than one person told me that couldn’t be right.They were correct: It was actually much worse. It has gotten to $2 trillion and much worse in just a few years.Note that we are talking here about a specific kind of pension: defined benefit plans. They are usually sponsored by state and local governments, labor unions, and...

May 21, 2019
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21May

What’s going on with an aging population and productivity?

The impact of an aging population on economic output and growth is the focus of an increasing number of studies. This development is not surprising given the retirement of the baby boomers and a rapid increase in the share of the population over age 60.The studies, however, provide seemingly conflicting conclusions. Two studies say an aging population is bad, and two say that it’s good.First, here’s what theory would tell you. In the absence of any other change, an...

May 21, 2019
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21May

Beyond mobile payments: Going up the value chain of fintech in Africa

Sub-Saharan Africa has become the global leader in mobile money adoption, usage, and innovation. The challenge now is to go beyond the success in payments to meet the unmet demand in the region for other, underdeveloped financial services that can facilitate the digitalization of other segments of the economy. In a new report, my colleagues and I take a closer look at the policy challenges that need to be addressed to go up the value chain of financial technology (fintech)...

May 21, 2019
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21May

Alexander Forbes announces retreat from Uganda

Alexander Forbes Financial Services Ltd said it is exiting Uganda, part of a parent company strategic review to focus on core businesses in its primary market and reset its pan-African operations.The reset of operations outside South Africa, its primary market, will see the financial services group exit “sub-scale markets such as Uganda,” Alexander Forbes Group Holdings Ltd. said in a regulatory announcement on the Johannesburg Stock Exchange in March.“The company is committed to an orderly exit from Uganda and...

May 21, 2019
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21May

DBRS warns Finland about population ageing, rising household debt

FINLAND has received yet another warming about population ageing and growing household debt.DBRS, a credit rating agency headquartered in Toronto, Canada, on Friday stated that population ageing and the shrinking of the working-age population are putting pressure on the public economy, representing a major medium-term challenge for Finland.The high level of household debt was another source of concern for the credit rating agency. “The high debt level and substantial portion of mortgages with variable interest rates increase the vulnerability of the...

May 21, 2019
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21May

Australia. Tony Abbott’s Going to Make Way More Money After Losing His Job

Tony Abbott lost his job over the weekend. The former Australian prime minister, onion muncher, and long-term MP for the north Sydney electorate of Warringah suffered a crushing defeat at the hands of Independent underdog Zali Steggall on Saturday night, bringing his political career to an abrupt and somewhat humiliating end. “I can’t say it doesn’t hurt to lose,” he told his supporters on election night, after conceding to Steggall. “So be it. I’d rather be a loser than...

May 21, 2019
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20May

UK. FCA investigates 30 pension advisers

The Financial Conduct Authority is currently investigating 30 unnamed individuals and firms for poor pension transfer advice and scams, according to Labour MP Nick Smith. The information was revealed by Economic secretary to the Treasury John Glen, who responded to a letter from the Blaenau Gwent MP, who asked for information on what action the regulator has taken against rogue advisers. Mr Glen also revealed that enforcement action has been taken against 15 businesses and individuals for "pensions misconduct"...

May 20, 2019
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20May

US. Is Our Health Care Spending Worth It?

Many people know by now that the United States spends much more on health care than any other country, and that health outcomes are not a lot better (and in many instances worse). That raises the question: Is our health care spending actually worth it? It’s tricky to figure out the extent of the roles that the environment, genetics and social support play in improving health. Nevertheless, the best evidence tells us that health care is still very valuable,...

May 20, 2019
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20May

Three economic myths about aging

Population ageing due to longevity is one of the greatest successes of the modern era. However, it is widely thought to dramatically reduce workforce participation and overall output resulting in significant economic costs. This widely held view is wrong. Ageing countries have higher economic growth and the improved health and longevity of older people increases their economic contributions. High immigration is also thought to combat population ageing and be a remedy for these non-existent costs of ageing. This is...

May 20, 2019
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