September 2021
15Sep

Study: As a population gets older, automation accelerates

You might think robots and other forms of workplace automation gain traction due to intrinsic advances in technology — that innovations naturally find their way into the economy. But a study co-authored by an MIT professor tells a different story: Robots are more widely adopted where populations become notably older, filling the gaps in an aging industrial work force. “Demographic change — aging — is one of the most important factors leading to the adoption of robotics and other automation...

September 15, 2021
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15Sep

South Africa. Micro pensions — a viable alternative to the NSSF

By Petri Greeff Whatever the reasons for the release and subsequent withdrawal of the green paper on comprehensive social security & retirement reform, it has sparked important debate, particularly around its call for a mandatory, contributory state pension fund. The many challenges facing the proposed National Social Security Fund (NSSF) have already been outlined by others. Nevertheless, about 6.2-million workers, primarily low-income in both the formal and informal sectors, are not covered by private pension schemes, according to the paper. So...

September 15, 2021
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14Sep

UK. Dashboard will not have accurate DB quotations

The Society of Pension Professionals has warned pension dashboards will have to provide illustrative figures to defined benefit members, as it will not be possible to have accurate quotations due to the complexity of current benefit structures. In a report published today (September 13), the industry body made a series of recommendations to the Department of Work and Pensions and the Pensions Dashboard Programme on how estimated retirement income calculations should be approached from the beginning of the project's rollout. Since...

September 14, 2021
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14Sep

US. House Democrats propose new retirement plan rules for the rich, including contribution limits and a repeal of Roth conversions

House Democrats proposed a slew of changes to retirement accounts for the rich on Monday, part of a restructuring of the tax code tied to a $3.5 trillion budget plan. Taken together, Democrats’ reforms aim to erode the use of retirement accounts as a perceived tax shelter for the wealthy and instead promote them as a way for low- and middle-income Americans to build a nest egg. Most of the changes would start in 2022. Wealthy individuals with retirement accounts exceeding $10...

September 14, 2021
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14Sep

German chancellor candidates clash over future of pension system

Chancellor candidates have argued over the future of the German pension system, offering opposite views to the public in the second televised debate which took place yesterday, as the general election on 26 September approaches. Olaf Scholz, chancellor candidate for the Social Democratic Party (SPD), now leading in the polls, said his party would “guarantee that the retirement age will not increase and that the level of pension remains stable,” also with an eye to the younger generation. Read also Germany....

September 14, 2021
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14Sep

Australia. Most vulnerable excluded from Disability Support Pension

The number of people locked out of disability support and forced on to inadequate JobSeeker Payments has more than tripled since 2007 as a direct result of ever-tightening eligibility rules, a new report has found. The Dead Ends report, by the Brotherhood of St. Laurence (BSL), Associate Professor Karen Soldatic, Western Sydney University; and Australian Federation of Disability Organisations, found an increasing number of people living with disability, psycho-social impairments and/or chronic illnesses are being assessed as having a “partial...

September 14, 2021
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14Sep

US. Retiring Boomers Could Drive An Inflation Shift

Inflation tends to top the list of economic risks that investors obsess most about. After all, runaway inflation has devastated some economies over the centuries. Corralling inflation and keeping expectations well-anchored have been key mandates for most central banks for decades. However, inflation expectations are not uniform across age groups. Surveys from the New York Federal Reserve highlight the disparity. The over 60 crowd expects inflation to hit a staggering 5% three years from now, while those under 40 think...

September 14, 2021
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13Sep

New U.S. Hedge Fund Taps Japan Pension Cash to Bet on Stocks

U.S. investment advisory firm GSB Capital LLC has started a hedge fund focusing on Japanese stocks, using seed money provided by a corporate pension fund in the Asian nation. The GSB Japan Equity Long Short Fund targets mid- and large-cap Japanese shares, buying equity of companies with attractive fundamentals while shorting those with a poor outlook, a statement showed Monday. It aims to raise a maximum of $650 million, the firm said, without naming the seed-capital provider. Pressured by rock-bottom interest...

September 13, 2021
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13Sep

Korea’s aging population to sap fiscal health: Fitch

The fast-paced aging of South Korea’s population is likely to undermine the fiscal health of Asia’s fourth-largest economy in the long run amid soaring debt, credit ratings agency Fitch Ratings said Monday. The aging population, coupled with a declining fertility rate of fewer than one child per woman, could leave Korea exposed to higher risks as rising government spending could become a less effective means of boosting nationwide productivity. Read also Australia. Most vulnerable excluded from Disability Support Pension Fitch urged Korea...

September 13, 2021
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13Sep

Millions of older people in the U.S. live on the economic edge—evictions will send them into homelessness

In late August, the Supreme Court ruled that evictions can resume, despite an effort by the Biden administration to temporarily ban them due to the pandemic. The impact of this ruling could have dire consequences for many older adults already on the financial brink. In fact, the number of homeless people who are 55 and older is rising at an alarming rate. I have seen this first hand as the CEO of Central Arizona Shelter Services (CASS), a 470-bed homeless...

September 13, 2021
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