July 2017

28Jul

Ireland. Strong support for mandatory pension scheme

A large majority of PAYE taxpayers are in favour of a new automatic pension scheme being introduced for those who have no occupational pension. The survey from tax specialists Taxback.com found that 84pc of people would be in favour of an auto-enrolment type scheme. The Government has plans to bring in this type of scheme, with the Taoiseach recently telling the Dáil he intends to bring forward proposals for an auto-enrolment scheme. But he gave no time frame for this. Auto-enrolment involves...

July 28, 2017
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28Jul

Pension companies need to change to engage with millennials

The latest Scottish Widows Adequate Savings index highlights a number of worrying trends regarding attitudes to pension planning amongst young people. Most noticeable is that although the introduction of auto-enrolment means that 80 per cent of under 30-year-olds now make some form of retirement provision, 70 per cent of them are still not investing nearly enough into their pensions to provide for a comfortable retirement. Our data also indicates that far fewer young people have their pension pots reviewed, compared with...

July 28, 2017
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28Jul

US. Black and Latino millennials less likely to have a retirement plan

The financial forecast for Millennials, according to a new study released by the University of Chicago, shows grim times ahead, with few able to afford marriage, retirement or living comfortable lifestyles similar to their parents. The retirement forecast for Black millenials could prove catastrophic if better financial planning, saving and curbing unnecessary spending are not taken seriously. According to the GenForward survey, conducted at the University of Chicago, young White and Asian adults between 18 and 34 across the U.S....

July 28, 2017
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27Jul

Pension crisis looms for UK women

That is according to new research by financial services firm Drewberry, which also shows that 75% of UK women have under £50,000 in their pension, compared with 57% of their male counterparts. In addition, it was found that 24% of all female workers in the UK earn less than £11,000 – almost three times the number of men – while 66% take home under 25,000, compared with 42% of males. This comes after the BBC was criticised last week when a...

July 27, 2017
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27Jul

US. Retirement plan participation higher than previously thought: ICI

More workers than commonly thought participate in retirement plans, according to a study by the Investment Company Institute. But even with the new numbers, there's plenty of room for improvement. The study by the mutual fund industry's trade group found that 63% of all workers aged 26 to 64 participated in an employer-sponsored retirement plan either directly or through a spouse. ICI's study looked at data from the IRS Statistics of Income Division Form W-2 study. The data provide an alternative...

July 27, 2017
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27Jul

EU. Rapid ageing could keep ECB’s hand tied for next decade: ECB paper

The rapid ageing of Europe's population may keep interest rates depressed over the next decade, potentially limiting the European Central Bank's ability to adjust policy, a research paper published by the ECB on Wednesday showed. The expected rise in the share of people not working will hold back growth and limit investment, making it necessary for governments to encourage later retirement, and to promote innovation and investment, the researchers said in a paper that does not necessarily represent the ECB's...

July 27, 2017
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27Jul

Australia’s Biggest Pension Fund Flags Equities, Local Property Risks

Australia's largest pension fund, AustralianSuper, is preparing for the end of the global equities run and looking to infrastructure opportunities in the United States where it believes foreign firms will in time gain greater access. AustralianSuper is a A$120 billion (£73.53 billion) fund that seeks out major positions, chief executive Ian Silk said at a Reuters Newsmaker event on Thursday in Sydney, that can affect its burgeoning book. Silk said an equities rally - Australia's benchmark has gained 43 percent since...

July 27, 2017
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27Jul

EU. ECB asks pension funds for more data

The European Central Bank will require euro zone pension funds to disclose more detailed data on their operations, arguing that it lacks proper visibility in a huge sector that is vital for the transmission of monetary policy, it said on Wednesday. With 50 million customers and 2.5 trillion euros ($2.9 trillion) in assets, pension funds are among the biggest and fastest-growing investors. That makes them vital for the ECB in gauging the success of its policy, particularly in a period of...

July 27, 2017
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26Jul

UK. We see no reason why the State Pension Age should go beyond 66

The House of Commons has just risen for its summer recess, and it’s safe to say that MPs have a lot to reflect on over the next few weeks after a pretty eventful year. While a lot of the focus has rightly been on Brexit, given it has such huge implications for all of us, there is an important job to do in holding the Tories to account on the day-to-day business of government. One of the last announcements the Tory...

July 26, 2017
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26Jul

Swiss Pension Fund Buys Bank

A first in Swiss banking: a pension fund is buying up a private bank in Switzerland with a view to creating a pension-focused bank. It stands out among the raft of recent deals in Switzerland: Tellco Vorsorge in central Switzerland is buying Zurich-based Dominick Private Bank. Together, they will become Switzerland's first pension-focused bank, the two said in a statement on Tuesday. While consolidation has been rife among private banks in recent years, the move marks the first time a pension...

July 26, 2017
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