July 2021
08Jul

The EU’s new green plan to achieve carbon neutrality

The European Commission revealed a new green financial plan on July 6 to meet its 2030 goal of cutting emissions by 55% across EU member states. The European Union body will need to raise €350 billion ($414 billion) a year to promote the use of natural gas over coal for power generation and push financial institutions to go green. Achieving the 55% cut in emissions will be a major step toward achieving carbon neutrality by the middle of the...

July 8, 2021
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08Jul

The slow-burn crisis inside Ukraine’s pension system

Adramatic situation with state pension provision is unfolding in Ukraine. In autumn last year, Ukrainian prime minister Denys Shmyhal stated that if “decisive measures” are not taken, then in 15 years the state will not be able to pay pensions. With the collapse of the Soviet Union, Ukraine inherited a so-called “solidarity pension system”: current pensioners are supposed to receive payments from pension contributions made by the working population. However, today the number of people employed in the Ukrainian economy...

July 8, 2021
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08Jul

ESG: Fad or Future?

The trend over recent years is impossible to ignore: ESG investing has been gathering steam. There have been record flows into ESG investments, companies in ESG sectors have registered impressive valuations and thousands of asset managers and owners have signed on to the UN Principles For Responsible Investment (PRI). Environmental sectors are outstripping growth in the overall economy and ESG-focused funds are outperforming their counterparts. There is a convergence of driving factors that already point to this being more...

July 8, 2021
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07Jul

UK. State pension predicted to rise by 8%

Predictions suggest that the link with earnings growth could mean an 8% rise in the amount paid from April 2022. That would cost the government £3bn more than previously expected, according to the Office for Budget Responsibility (OBR). Read also UK. Chancellor Rishi Sunak hints at ruling out 8% pension rise But UK state pensions remain less generous than much of Europe, and are vital for millions of people. Read also UK. Nearly a third of Gen Xers have inadequate pension savings At present: The...

July 7, 2021
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07Jul

Retirement for 45-Year-Olds May Vanish in Saudi Pension Reform

Saudi Arabia is considering revamping the kingdom’s pension system to require citizens to work longer and contribute more, another hit to living standards that could undermine public support for Crown Prince Mohammed bin Salman’s efforts to reshape the oil-reliant economy. Read also The slow-burn crisis inside Ukraine’s pension system The government -- faced with an estimated actuarial gap of 800 billion riyals ($213 billion) at the state-controlled pension fund -- is weighing proposals to increase the retirement age, according to three...

July 7, 2021
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07Jul

Covid-19 spurs wave of interest in sustainable investing

However, there are still challenges to overcome to make sustainable investment effective and measurable, the study noted. The survey polled 750 global institutional investors covering $26.1tn (£18.9tn) in assets. It found official institutions, including national pension plans, were much more likely (at 70 per cent) to cite Covid-19 as making sustainable investment “significantly more important” than for insurance institutions (57 per cent) and corporate pension plans (49 per cent). Engagement remained more popular than divestment strategies, and 57 per cent of...

July 7, 2021
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06Jul

Asset owners managing US$6 trillion call for global carbon price

Investors managing more than US$6 trillion in assets on Tuesday (Jul 6) called for a coordinated global price on carbon and said emissions costs would need to almost treble by 2030 to reach the world's climate goals. The call by The Net Zero Asset Owner Alliance, whose 43 members include some of the world's biggest pension schemes and insurers, comes ahead of the next round of global climate talks in November. Currently, 64 carbon pricing instruments such as emissions trading schemes...

July 6, 2021
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06Jul

UK. Nearly a third of Gen Xers have inadequate pension savings

Almost one in three Generation Xers — individuals aged between 41 and 56 — have inadequate pension savings and face a minimum-at-best standard of living in retirement, according to research by the International Longevity Centre and Standard Life. The ILC’s ‘Slipping between the cracks’ report found that 60 per cent of Gen Xers in a defined contribution scheme are not contributing enough for financial security or flexibility later in life, while 59 per cent of those with insufficient savings lack...

July 6, 2021
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06Jul

Canadian pensions raise stakes in Apac real estate

Asia Pacific now accounts for about a quarter of outbound allocations by Canadian investors, up from just 10% between 2015 and 2019, according to a June 21 report by Real Capital Analytics (RCA) – and much of that outflow has been captured in regional real estate. This is part of an overall trend of Canadian investors diverting their attention outside North America, with around half of outbound allocations leaving the continent since 2020. “Five of the top eight Canadian investors in...

July 6, 2021
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05Jul

I am my father’s retirement plan. It’s an honor that terrifies me.

My father lives in a crumbling house. Tile is missing from the bathroom walls, and in the well-worn hallways, my dad has used blue painter's tape to keep patches of burgundy carpet in place. Before I had it replaced, the floor in the dining area was a mismatch of linoleum tile that did nothing to hide or fix the large hole forming between the kitchen and the laundry room. Despite its state of disrepair, the house means a great deal to...

July 5, 2021
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