May 2019

17May

UK: Pension Scheme Investment – A New Era Of Increased Competition?

Recent intervention by the Competition and Markets Authority could lead to increased competition in the market for investment professionals who provide services to pension schemes – which should be a good thing for the employers supporting those schemes. Many occupational pension schemes use the services of investment consultants and / or fiduciary managers. Broadly, investment consultants advise pension scheme trustees on how best to invest scheme assets – and fiduciary managers make investment decisions on behalf of pension...

May 17, 2019
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16May

New ‘superfunds’ gear up to manage Britain’s deficit-ridden pensions

Britain’s company pension schemes, grappling with ageing former employees and low investment returns, may start to transfer their assets into new so-called superfunds in the coming weeks, according to people involved in the process. There are around 2 trillion pounds ($2.6 trillion) in more than 5,000 UK private defined benefit, or final salary pension schemes. Nearly two-thirds are in deficit, putting a burden on companies looking to strike merger deals or restructure debt. Although most companies have closed these...

May 16, 2019
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16May

Why Working Till Whenever Is a Risky Retirement Strategy

Cleo Parker had a simple plan before retiring: She would work well into her 60s as a marketing analyst in the automotive business. But recently, she has been searching for a Plan B. In 2006, just as she was about to turn 50, Ms. Parker’s longtime marketing job with a Detroit-area advertising agency was eliminated. For the next decade, she worked a series of short-term-contract and full-time positions — many in the volatile auto industry, which has reduced employment...

May 16, 2019
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16May

WB continues to support Vietnam Social Insurance

The Deputy Director General of the Social Insurance of Vietnam, Nguyen Dinh Khuong, has just worked with a delegation of the World Bank, led by the financial expert Alwaleed Alabatani. During the recent working session, he said that the first phase (2017-2018) of the technical assistance project on the management and investment of pension funds between the two parties has come to an end. The World Bank would continue to support Vietnam's Social Insurance in reform, improving the...

May 16, 2019
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16May

CDPQ invests in WeWork property platform

Launch of new ARK garners US$1bn. The We Company, parent of workspace provider WeWork, said on Wednesday it has created a US$2.9 billion real estate investment platform with funding from one of Canada's largest pension funds, building on ties with private equity firm the Rhone Group. The platform, called ARK, has gained US$1 billion from Canada's Ivanhoe Cambridge, the property arm of Caisse de dépôt et placement du Québec, the Montreal-based company said. WeWork, founded in 2010, is now...

May 16, 2019
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15May

UK. Life expectancy declining: KPMG

Latest research from KPMG debunks the assumption that life expectancy is increasing when in fact it has contracted for the fourth consecutive year. After analysing the mortality of UK retirees on defined benefit plans, the KPMG 2019 Pensions Accounting Survey found median life expectancy has fallen by 0.2 years for current pensioners and 0.1 years for future pensioners. A current pensioner aged 65 for example, is expected to survive a further 21.9 years on average. However, a future pensioner...

May 15, 2019
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15May

China may see explosive growth of individual commercial pension insurance

Individual commercial pension insurance has the potential to see explosive growth in China as the country needs to address challenges in its pension system, according to a report by McKinsey & Company in Beijing on Tuesday. China's pension system is composed of three parts: first-level basic pension insurance, second-level enterprise and occupational annuity, and third-level individual commercial pension insurance. The structure of China's pension system is far from being balanced and sustainable. By the end of 2017,...

May 15, 2019
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15May

Childcare costs fuel gender pension gap

The gender pensions gap is being worsened by the cost of childcare as it causes 36 per cent of women to leave their job which in turn halts pension contributions. A report from not-for-profit pension provider The People’s Pension, published on May 13, found that after having children, nearly half of women (44 per cent) reduced their hours, more than a third (36 per cent) left work altogether and 15 per cent returned to work in a lower grade...

May 15, 2019
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15May

The Financial Burden of Retirement Is a Global Problem—but Asia Is Uniquely Vulnerable

Asian pension systems are facing major challenges. The region is experiencing seismic demographic changes, with rapidly aging populations and declining birthrates. But investment returns are relatively low due to geopolitical uncertainty and minimal interest rates. With the region having relatively few robust retirement systems, many Asian countries will struggle to provide adequate pensions. Governments need to take positive action now to reduce financial pressures and avoid intergenerational conflicts between the young and old. Life expectancy at birth in the...

May 15, 2019
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15May

Three Retirement Planning Needs Everyone Has

Every retirement is unique. An individual’s situation – where they live, their health, their family, their finances, their goals – drives retirement. But, despite being so unique and individualized, fundamental tenants of retirement apply to almost everyone. In fact, the notion that we think we are so unique can be a hinderance to a financially successful retirement. Perhaps this is best illustrated through the psychological occurrence when people go along with something because they believe everyone else is on...

May 15, 2019
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