May 2021
12May

Chicago Boys’ Free-Market Pension Model Is Unraveling in Chile

Chile’s privately run pension funds are in a battle for survival, reeling under the impact of billions of dollars of withdrawals as politicians and social movements attack a system once viewed as a model for the world. Chileans have taken out more than $30 billion from their retirement savings in the past year and congress has authorized a third wave of withdrawals that could drive the figure to more than $50 billion. That would leave the pension funds with about...

May 12, 2021
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12May

Australia’s Budget Takes Steps to Narrow Gender Gap in Pensions

Australia is taking steps to lift retirement savings of women in a bid to address the gender pension gap. The government will remove the A$450 ($352) per month earnings threshold before employers are forced contribute cash into their workers’ retirement funds by July 2022, according to budget documents released Tuesday. Australia will also increase compulsory pension savings to 10% of a worker’s wage from July 1, as previously legislated. Read also Australia Considers Paying Pensions on Parental Leave Program The plan comes...

May 12, 2021
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11May

Why China and east Asia’s ageing population threatens global Covid recovery

For many years China watchers have been concerned that its ageing population will slow economic growth, causing social as well as political problems. So today’s census data may be an alarm bell for leaders in Beijing. But it is not just China that is witnessing this trajectory. Most countries in east Asia, even without fertility control policies such as China’s one-child or two-child policies, share the same predicament: how to continue economic growth while encouraging people to have more children? This...

May 11, 2021
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11May

US. Public pensions won’t earn as much from investments in the future. Here’s why that matters

State pension systems dropped the rate of return they assume for their investment portfolios again, continuing a two-decade long trend that public-finance experts say is necessary, even as it presents some challenges for the entities that participate in such plans. The median assumed return in 2021 is 7.20%, according to a report published early in May by the National Association of State Retirement Administrators, down roughly 1 percentage point since 2000, as the investment managers charged with managing trillions of...

May 11, 2021
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11May

UK. DB transfer victims lose up to 40% of compensation

Victims of defined benefit transfer mis-selling stand to lose an average 40 per cent of compensation payments thanks to changes in the way redress is calculated. While this problem could affect every victim of DB transfer misadvice across the UK, the discrepancy has come to light because steelworkers at Port Talbot have been 'comparing notes' on the compensation levels they have received so far. As a result, campaigners helping former British Steel Pension Scheme members to get redress have warned the way the...

May 11, 2021
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11May

German utility giant Eon starts €2.5bn pension fund

German utility giant Eon has created a new pension fund structure that will cover 10,000 members and have €2.5bn (£2.15bn) in assets under management. Eon acquired German energy company Innogy from RWE in 2019. Innogy’s pension assets from RWE Pensionsfonds were transferred to Willis Towers Watson’s Pensionsfonds in December that same year as an interim solution. Eon will use the pension expertise of Willis Towers Watson for both implementation and the ongoing operations of the new pension structure. Stefan Brenk, head of...

May 11, 2021
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10May

US. How Mass Retirement Is Affecting the Bond Market

Public work is a different ballgame, but in the private sector, defined benefit pensions have largely been replaced by 401(k) plans. However, there's still a massive amount of pension liabilities floating around in the market, and with mass retirement setting in, how those funds are managed can affect retirees everywhere – regardless of work history. Read also US. Biden’s $86 Billion Pension Rescue Set to Boost Corporate Bonds “There remains $1.8 trillion in assets in the largest 100 public companies’ pension...

May 10, 2021
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10May

Average Czech pension crosses 15,000 crowns per month

The average pension for senior citizens in the Czech Republic crossed 15,000 crowns for the first time this year, reveal stats from the Czech Social Security Administration (CSSZ). The CSSZ paid out an average of 15,351 crowns monthly to retirees by the end of the first quarter. In a year-on-year comparison, CSSZ expenditures grew while the total number of allocated old-age pensions dropped, largely due to effects of the Covid-19 pandemic. Czech pensions rose in January 2021, increasing by an average...

May 10, 2021
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10May

Philippines. DOF backs planned overhaul of military pension system

The Department of Finance (DOF) will rally support this year for the passage of proposed reforms in the pension system of the military and uniformed personnel (MUP). Finance Secretary Carlos Dominguez has directed the department’s Strategy, Economic and Results Group (SERG), led by Finance Assistant Secretary Juvy Danofrata, to assist the Treasury in gathering support from stakeholders and lawmakers for the revamp of the MUP pension system. “This year, Secretary Dominguez directed SERG to assist the Bureau of the Treasury (BTr)...

May 10, 2021
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07May

A Third Of Seniors Seek To Work Well Past Retirement Age, Or Won’t Retire At All, Poll Finds

More Americans plan to work past the age of 70 – or never retire at all – according to a survey released Thursday by reverse mortgage lender American Advisors Group, suggesting the pandemic prompted many aging Americans to rethink their retirement strategies in order to maintain their living standards. Almost half (46%) of the more than 1,500 Americans aged 60 to 75 surveyed by AAG said they plan to work part-time after they retire from full-time work. Nearly one-fifth (18%) of...

May 7, 2021
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