July 2017

24Jul

Malta. Reviewing the pensions paradigm: a disruptive opportunity?

In 1889, the first system of State pension provision was introduced by German Chancellor Otto Von Bismarck. At its inception the system afforded a pension to all those who attained 70 years of age, although the average life ex­pectancy was of around 37 years of age. With time, came advancements in medical and sanitary standards, but it also brought with it the challenges of people’s longevity and the sustainability of the pension system and the economy as a whole. Today...

July 24, 2017
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24Jul

UK. State pension changes will cost 7 million people £10,000 each

More than 7 million people will lose just under £10,000 each because of new government plans to increase the state pension age earlier than planned. Last week the government announced it would raise the state pension age to 68 for those now in their late 30s and early 40s. The change will affect Britons born between 1970 and 1978, who will now have to wait another year to receive their state pensions, a move which the government found would save...

July 24, 2017
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21Jul

Japan’s defined-benefit pension funds boost exposure to alternatives

Japan’s defined-benefit (DB) pension funds are rebalancing their portfolios to raise exposure to alternatives and reduce the weighting of domestic bonds in the current negative interest rate environment, according to a survey by JP Morgan Asset Management (JPMAM). The domestic bond holdings of Japanese DB pension funds fell to an eight-year low of 27.9% in the 2016 fiscal year ended March 31, 2017, from 29.8% in the previous year, JPMAM says in a July 19 statement on the survey findings. Meanwhile,...

July 21, 2017
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21Jul

China. Principal links up CCB to design Pension Plan

Global financial investment management company Principal Financial Group Inc has partnered with China Construction Bank to seek opportunities in the country's huge but developing pensions market, which is currently worth more than $700 billion. Daniel Houston, chairman and CEO of Principal Financial Group, said his company had signed a strategic cooperation agreement with CCB for a potential pension partnership in China and the two sides would assess what role the Iowa-based company would play. "We have great confidence in the nation's...

July 21, 2017
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20Jul

The US is losing ground when it comes to retirement security

All your retirement dreams can come true, just maybe not in the U.S. Among the leading nations for retirement security, the United States didn't even crack the top 15, according to the 2017 Global Retirement Index by Natixis Global Asset Management. Europe, however, continued to dominate the top spots, with Norway at No. 1 for the second year in a row, followed by Switzerland and Iceland. Sweden ranked No. 4 and New Zealand rounded out the top 5, Natixis reported. With more...

July 20, 2017
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20Jul

Have Americans’ Retirement Benefits Been Slashed?

Ben Steverman of Bloomberg reports that “Employers cut their contributions to workers' retirements by a quarter from 2001 to 2015…The biggest driver: the decline of traditional defined-benefit pensions, replaced by stingier, 401(k)-style, defined-contribution plans.” According to a survey by the firm Willis Towers Watson, employer contributions to retirement plans fell from 9.1 percent of worker pay in 2001 to just 6.8 percent in 2015. Just another day in the ongoing retirement crisis, right? In fact, federal government data show...

July 20, 2017
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20Jul

UK. State pension age to increase seven years earlier than planned

Britons born between 1970 and 1978 will have to wait an extra year, until they are 68, to claim their state pension, the government has announced. David Gauke, the work and pensions secretary, announced the controversial rise for about 7 million people in their late 30s and early 40s just before the House of Commons breaks up for its summer recess. The move implements the findings of a review by the former CBI director general John Cridland, published in March, which...

July 20, 2017
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19Jul

US. GOP again hits federal retirement in latest budget plan

The House budget proposal released Tuesday continues Republican efforts to cut federal employees’ compensation by making them pay more for retirement benefits. Saying they seek “reforms to civil service pensions to put them on a better fiscal path,” the spending plan released by the House Budget Committee calls on staffers “to make greater contributions to their own defined benefit retirement plans.” While the Republican’s “Plan for Fiscal Responsibility” did not provide details, it echoes previous proposals, including one offered by President...

July 19, 2017
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19Jul

Nigeria. Social Rights Project challenged to prove pension allegation

The Minister of Mines and Steel Development, Dr Kayode Fayemi, on Tuesday issued a seven-day ultimatum to the Social-Economic Rights Accountability Project (SERAP) to prove he still receives pensions. He said SERAP must make public details or proof of pension and any other remuneration alleged to be enjoyed by him from the Ekiti State government since leaving office as governor of the state in 2014. He said in the alternative, the SERAP should publicly apologise to him for including his name...

July 19, 2017
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19Jul

EU Commission concerned about living standards for future generations

Despite the better economic news, the risk remains that the younger generations will have less well than their parents, finds the European Commissioner for Employment and Social Affairs Marianne Thyssen. Presenting the Annual report on employment and social developments in Europe on Monday, Thyssen presented the situation on the European labor market, a decade after the outbreak of the financial crisis. EU’s labor market looks rosy again, while the unemployment rate is the lowest since December 2008 and employment has never...

July 19, 2017
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