June 2021
23Jun

Canada. New CPPIB Head Graham Says Inflation Will Stay Muted in Long Run

Strong demand, particularly from the U.S. consumer, may fuel higher inflation in the short term, but there is little risk of runaway price growth, according to the head of Canada’s $403 billion national pension fund. “It’s going to be really interesting over the next few months. We have a really high savings rate in the U.S., high savings rate in Canada, and really a lot of pent-up demand,” John Graham, chief executive officer of Canada Pension Plan Investment Board, said...

June 23, 2021
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23Jun

Ireland. Reducing pension age from 66 to 65 would cost €127m

Sinn Féin expects other parties and the public to judge them on “what they say they will do if they were in government in the south not what they actually do when they are in Government in the North,” Minister of State Damien English has said. Mr English made the claim during a Dáil debate on a Sinn Féin motion calling for calling for the Government to offer people the choice to retire at 65 if they wish. The pension age...

June 23, 2021
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23Jun

Australia. Changes to ‘super size’ retirement savings

For the average Australian worker, legislated rises in superannuation will mean an extra $85,000 in their super account at retirement. The Association of Superannuation Funds of Australia on Wednesday released a report on how the increases set to kick in from July 1 will "super-size" retirement balances. Super balances are also set for a whopper year of double-digit gains, despite COVID-19 wobbles. The rise in the superannuation guarantee rate to 10 per cent from next month represents an extra $19,000 in a...

June 23, 2021
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22Jun

World Bank : The costs and benefits of making pension funds a target for financial repression

Financial repression is not new topic, but the striking amount of new debt taken on by governments to support their economies in the wake of the COVID-19 crisis has made the issue ever more relevant. Financial repression occurs when governments channel funds to themselves that in a deregulated market environment would go elsewhere. It usually aims to provide cheaper loans to companies and governments, reducing their burden of repayments by lowering returns to savers. Policies involved can include capital...

June 22, 2021
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22Jun

UK Rules Out Ditching ‘Triple Lock’ Pledge on State Pension Increases

British newspapers have reported that the government was looking at suspending the promise to increase pensions by whichever is higher of consumer price inflation, average earnings growth, or 2.5%. They said it could help pay for the cost of the government’s COVID-19 response. “We are committed to the triple lock,” the spokesman said, when asked about the reports. Due partly to distortions from the coronavirus pandemic, annual wages in the three months to April grew by an annual 5.6% – creating...

June 22, 2021
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22Jun

South Africa. UDM President says PIC must be taken to court

UDM President, Bantu Holomisa has rallied behind the PSA in its cries for pensions to not be touched when it comes to the SAA and PIC ownership deal. On Monday, 21 June 2021, the United Democratic Movement (UDM) President, Bantu Holomisa backed an article from a local publication. The article alleged that the Public Servants Association (PSA) is concerned that its workers might lose their pensions, due to the involvement of the Public Investment Corporation (PIC) in South African Airways’...

June 22, 2021
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21Jun

UK. State pension: Warning as ‘low’ sum leaves millions at risk of ‘inadequate’ income

The State Pension is made available to individuals who have put forward a set number of National Insurance contributions throughout their lifetime. Many people will have worked for decades to ensure their state pension reaches the full sum as outlined by the Department for Work and Pensions (DWP). At present, the most someone can receive through the basic state pension is £137.60 per week. This increases slightly to a full sum of £179.60 per week for those on the new...

June 21, 2021
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21Jun

New Giant Saudi Pension Fund Aims to Crack World’s Top 10 Ranks

Saudi Arabia gave a first glimpse of the ambition behind the merger of two of its pension and insurance funds with a plan to rival the world’s largest investors. The new entity will boast assets of over $250 billion, according to the chief executive officer of Hassana Investment Co, the investment management arm of the kingdom’s General Organization of Social Insurance. GOSI, as the fund is known, will combine with the Public Pension Agency in a move that will reduce...

June 21, 2021
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21Jun

Euro area pension fund statistics: first quarter of 2021

Total assets of euro area pension funds amounted to €3,105 billion in first quarter of 2021, €39 billion lower than in fourth quarter of 2020 Total pension entitlements of euro area pension funds dropped to €2,672 billion in first quarter of 2021, down €109 billion from fourth quarter of 2020 Total assets of euro area pension funds decreased to €3,105 billion in the first quarter of 2021, from €3,144 billion in the fourth quarter of 2020. Investment fund shares accounted for 48.2%...

June 21, 2021
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21Jun

UK. Pensions commits to net zero by 2050

Pensions has committed to net zero emissions by 2050 by overhauling its investment strategy. The new strategy will see members’ savings invested in an equity fund which invests in companies that have lower carbon footprints. It will include investing in sustainable bonds and sustainable equities to at least 50 per cent of the portfolio’s net asset value by the end of 2021. The pensions provider says the changes come after an overhaul of the trust’s investment strategy in order to integrate ESG...

June 21, 2021
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