May 2019

14May

Collective Defined Contribution Schemes: A Fresh Alternative?

The government has given the green light to a new form of defined contribution pension scheme. At least, it is new to the UK. "Collective defined contribution" ("CDC") schemes are common in the Netherlands and Denmark but the idea of introducing this type of scheme into the UK has only relatively recently gained traction. The fact that the Royal Mail wants to put such a scheme in place for its 140,000-strong workforce has provided the impetus...

May 14, 2019
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14May

82% of Americans Are Making a Massive Retirement Planning Mistake

If you get a sinking feeling in your stomach when you think about your retirement finances, you're not alone. In fact, 75% of Americans report feeling only somewhat confident or not confident at all about their future financial health, according to a Fidelity survey . Respondents said they worry about outliving their assets, rising healthcare and living costs, and having to adjust their lifestyle to a fixed-income budget. There is a simple way to avoid this fate and to...

May 14, 2019
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14May

Canada. Mark Evans appointed director of CPPIB

Mark Evans, a former Goldman banker and veteran tech investor, is joining the Canada Pension Plan Investment Board (CPPIB) as a director for a three-year term, the Department of Finance Canada announced Monday. Evans spent 15 years with Goldman Sachs until 1999, before working as an investor in the tech sector with various firms. He is currently working with several early stage tech companies. Evans has a BA in economics from Queen’s University and a master’s in economics from...

May 14, 2019
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13May

EU pledges to cover PA salaries and pensions for April

The European Union has pledged to give the Palestinian Authority €15 million ($17 million) to cover the salaries of public employees – salaries that PA President Mahmoud Abbas cut to keep up payments to imprisoned and released terrorists, wounded terrorists and the families of dead terrorists. Abbas has declared that the PA is “obligated” to continue rewarding the terrorist prisoners and families of so-called “martyrs.” Earlier this year, Israel decided to withhold from the tax money it collects on...

May 13, 2019
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13May

Uber, Lyft: Gig economy employees are facing a heightened retirement crisis

Americans are increasingly falling behind on their retirement savings, and it could be even worse for the millions working in the gig economy. Despite the overall gig economy booming with companies like Lyft (LYFT) and Uber (UBER) going public, the companies’ staunch resistance to meet drivers’ demands for full-time employment and benefits “has the potential” to worsen the retirement crisis, Chad Parks, Founder and CEO of Ubiquity Retirement + Savings told Yahoo Finance. “To the best of our knowledge,...

May 13, 2019
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13May

UK. Number of civil servants on £100,000 pensions trebles

The number of public servants retiring with pensions of more than £100,000 a year has trebled since 2010 as executives in final-salary schemes finish work. NHS, civil service and teaching pension schemes paid six-figure incomes to 375 people last year, up from 117 in 2010, according to data obtained under the Freedom of Information Act. More than 115,000 retired public servants are receiving more than the average salary of people in work, now £28,600 a year, up from 78,000...

May 13, 2019
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13May

US. Private equity’s allure poses big risks for the stock market and its investors in the next recession

Private equity has taken center stage in active investing, and that means the stock market and its investors could face more challenges — especially in a recession. The transition is already underway and according to asset manager AllianceBernstein, won’t be ending soon. In a note to clients this week, the firm outlined an upcoming decade in which the “main expression of active investing” is in private markets. Analysts say this shift introduces potential problems. Liquidity could dry up in...

May 13, 2019
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13May

Bermuda. Retirement age under review

The retirement age should be increased to 70 over a ten-year period, a Labour Advisory Committee report recommended yesterday. The report, tabled in the House of Assembly, said Bermuda’s ageing population had put pressure on pension plans and public sector finances. It also recommended that legislation should be amended or introduced to prevent discrimination against older employees and that a toolkit to help people prepare for retirement should be created. An LAC sub-committee compiled the Reviewing the Retirement Age...

May 13, 2019
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10May

Brazil pension overhaul could turn foreign investment flow into deluge

Long-term foreign investment of well over $100 billion a year is ready to pour into Brazil if the government passes business-friendly reforms, according to some economists, providing fuel for an economy that failed to take off following a brutal 2015-16 recession. Brazil ranks second only to China among emerging markets in terms of drawing foreign direct investment, or FDI, in recent years. However, economists say much more capital is waiting on the sidelines and how much of that makes...

May 10, 2019
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10May

US. Retirement Savings Will Suffer When The Current Debt Bubble Bursts

People with a lot of debt keep borrowing more, aided by lower interest rates and increasingly by lenders simply ignoring prudent rules. Those lenders can then bundle the loans and sell them to investors, who may not fully understand the large financial risks that they take on. This may sound like 2007, but this is happening in 2019. The only difference is that this time it’s companies loading up on debt, not households. The phenomenon is called leveraged lending,...

May 10, 2019
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