August 2021
23Aug

China: New State Pension to Boost Retirement Savings

The establishment of the new state pension company is waiting for regulatory approval from the CBIRC. China plans to set up a state pension company with registered capital of CNY 11.15 billion (USD 1.72 billion) to boost the retirement funds available for its rapidly ageing population. According to Reuters, 17 bank-affiliated wealth management units, insurers and state institutions will take stakes in the company, whose largest shareholders include the wealth management units of China’s big five banks, each with a stake...

August 23, 2021
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23Aug

ESG: Impact Investing

BEST OF BOTH WORLDS Investors are finding that financial performance and ESG ‘impact’ can be complementary goals Understanding the landscape of environmental, social and governance investing is critical to choosing the right investment strategy, particularly when it comes to the impact of that investment. As ESG investing continues to evolve and institutional investors have a growing number of strategies to pursue, they may find it challenging to navigate the wider array of options and to apply the appropriate nomenclature to the...

August 23, 2021
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20Aug

China plans $1.72bn national pension company

China plans to set up a national pension company in Beijing with registered capital of 11.15 billion yuan ($1.72 billion) as the country's population rapidly ages. Seventeen financial institutions will take stakes in the company, including the wealth management units of China's big five banks, each with 1 billion yuan, or 8.97%, the Insurance Association of China said Thursday in a statement on its website. China's largest brokerage, Citic Securities; Taikang Life Insurance; and the investment arm of Beijing's State-owned...

August 20, 2021
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20Aug

Why Tontines Should Be a Piece of the Retirement Solution

By Jasmin Sethi Retirees are often faced with the fear of outliving their assets. This fear, also known as longevity risk, has been eased by the availability of annuities, specifically annuities that I’ve termed in my paper as guaranteed income products, or GIPs, that offer fixed payments until death. One would think that a product offering fixed payments for life would be more popular among retirees, but the reality is that Americans choose not to purchase annuities. Why? A big factor...

August 20, 2021
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20Aug

Here’s The Only Retirement Risk That Really Matters To You

Chances are at some point in your retirement saving (or spending) life you’ve been asked a question or two about your appetite for risk. For a while, back in the era of Modern Portfolio Theory, the whole concept of “risk” and the investor was the cat’s pajamas. In the old days they even had entire questionnaires designed to extract this information from you without you knowing it. That is until it became clear those little quizzes had about as much...

August 20, 2021
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19Aug

US. Climate Change and Benchmarking Risk for Retirement Plans

Institutional Investors Generally  don´t mine coal, make cement or indiscriminately strip large forests. But the companies in which they invest might be engaged in such activities that experts say will prove incompatible with the shift to a lower-carbon world. And, they add, a retirement plan’s holdings of these at-risk investments could have negative consequences for plan participants.   Plan Exposures Climate change risks can affect plans in several ways, says Therese Feng, vice president of research for The Climate Service, a climate...

August 19, 2021
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19Aug

China’s pension funds post surge in investment returns in 2020

Chinese pension funds posted an investment return rate of 15.84% last year, nearly doubling the 20-year average of 8.51%, a report from the National Council for Social Security Fund showed on Wednesday, partly due to a jump in domestic stock markets. China, the world's most populous country, has been looking to boost its investment returns and size of its pension funds, to cope with a looming demographic crunch as population growth slows. To counter the economic impact of rapid ageing and...

August 19, 2021
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19Aug

South Africa proposes a mandatory pension system

Minister of Social Development, Lindiwe Zulu, has published a Green Paper on comprehensive social security and retirement reform for public comment. It includes a mandatory pension and insurance system among the proposals. Read also Warning over major retirement change for South Africa The department said that the absence of a statutory arrangement providing pensions and insurance is the most obvious gap in South Africa’s social security system. Read also European Union: Putting A “PEPP” In The Step Of European Pension Providers? “Such an arrangement...

August 19, 2021
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19Aug

UK. Aon launches online quiz to explore CDC option

Aon has launched an online quiz that UK employers and pension scheme trustees can use to explore how a collective defined contribution scheme could meet their future needs. Aon’s CDC-simplified tool asks 10 questions that allow those currently running defined benefit or DC schemes to see if a CDC pension scheme could be an option for them Based on the answers to each question, respondents can also establish which “flavour” of CDC might be suitable for their circumstances, Aon stated. As reported...

August 19, 2021
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18Aug

UK. Pressure increases on Rishi Sunak to suspend triple lock on pensions

Rishi Sunak has come under further pressure to suspend the state pension triple lock after wage figures showed that the chancellor is on course to pay pensioners a rise of more than 8% next year. Sunak is understood to be considering telling Britain’s 12 million state pension claimants that the pandemic has artificially inflated the official wages figures and a new formula is needed to calculate the rise in the basic state pension for next year. Read also UK. I Don’t...

August 18, 2021
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