April 2021

Latin America. What Comes After the Commodity Super Cycle and the Pandemic? Policies to Tackle Poverty and Inequality in Latin America

Latin America entered the pandemic as one of the most unequal regions in the world. And like much of the rest of the world, it will come out of the pandemic poorer and more unequal. Early estimates suggest that 19 million more people in the region have fallen into poverty and inequality increased by 5 percent compared to pre-crisis levels. Large scale public support in many countries prevented an even worse outcome, but this pushed public debt levels from...

US. What’s Happened to Retirement Expectations During the Pandemic?

More than a year after the start of the COVID-19 pandemic, workers are focusing on the future—including sizing up how their prospects for retirement have changed. For many, the pandemic hasn't harmed their finances and may have increased their ability to save, given fewer spending opportunities. Meanwhile, others found it necessary to withdraw funds from their retirement account so they could pay their bills. A Roller Coaster Year According to Fidelity Investments' 2021 State of Retirement Planning Study: 82 percent of workers in...

NY State Pension Commits to $400 Million in Sustainable Investments

The $247.7 billion New York State Common Retirement Fund has committed approximately $400 million to two funds as part of its Sustainable Investments and Climate Solutions (SICS) Program. The commitments are part of New York State Comptroller Thomas DiNapoli’s climate action plan to lower investment risks from climate change and help shift the pension fund to net-zero greenhouse gas emissions within the next 20 years. “While climate change poses investment risks, it also creates opportunities for the state pension fund to...

Morneau Shepell releases the results of its Performance Universe of Pension Managers’ Pooled Funds

Morneau Shepell (TSX: MSI) has released the results of its Performance Universe of Pension Managers’ Pooled Funds for the first quarter of 2021. According to the report, in the first quarter of 2021, diversified pooled fund managers posted a median return of 1.8 per cent before management fees. “The stock market continued to rise in the first quarter and the MSCI World Index delivered a 3.5 per cent return. The Canadian Equity S&P/TSX Composite Index posted a return of 8.1 per...

Redington and Fidelity announce net zero pension plans

Redington has announced it will align all default client advice with the goal of reaching net zero emissions by 2050 at the latest, as outlined in the Paris Agreement. The investment consultant estimated that, as a result of the change most clients will achieve a 50 per cent reduction in their carbon emissions by 2030. The move sits alongside the firm's broader seven-point climate action plan to integrate sustainability considerations across its entire business, including commitments to reduce and offset its...

UK. MSP pension fund under fire for investing almost £1m in fossil fuels

Analysis of the Scottish Parliamentary Pension Scheme by Friends of the Earth Scotland based on a freedom of information request shows that the estimated fossil fuel investment is £923,585 - around £7,160 for each of the 129 MSPs. With Glasgow due to host the Cop26 UN climate conference later this year environmental campaigners are calling on local authorities to divest from fossil fuels. The Scottish Parliament’s pension fund was found to have an estimated £733,000 stake in BHP, a major coal,...

Chile’s Pinera counters opposition pensions withdrawal bill with own initiative

Chilean President Sebastian Pinera on Sunday announced the government will launch its own bill to allow citizens to draw more from their private pensions in a last-ditch attempt to kill off a similar move led by the opposition. Pinera said his proposed rival bill would be subject to means-tested taxation and would allow for the withdrawn funds to be gradually repaid through state and employer contributions. The president said his initiative was a better option than the opposition's bill, which the...

Multi-pillar pension systems can help EU address the ageing of European societies

Multi-pillar pension systems can help EU address the ageing of European societies Insurance Europe has today published its response to a consultation conducted by the European Commission on its green paper on ageing. Insurance Europe's contribution focuses specifically on the questions pertaining to pensions and long-term care, given the extensive expertise that insurers have in these areas. On pensions, the industry welcomes the Commission's efforts to boost adequacy in retirement income across Europe, as demographic changes are increasingly putting statutory pension...

UK. Private sector DB disappearing ‘more rapidly than thought’

Private sector defined benefit schemes are closing more rapidly than realised, meaning the incomes of newly retired workers are set to fall at a much more dramatic rate in the coming decades than had previously been thought, according to consultancy LCP. A report from the firm found in the private sector the decline of traditional final salary-type pensions is more rapid than previously assumed, while the rise of new ‘pot-of-money’ workplace pensions will take longer to make a real impact than...

Australia. Women retire with over $30,000 lower balance in super than men

Australians need to prepare for retirement and take control over when and with how much they want to retire, according to chief analyst at Wealth Within, Dale Gillham. He stressed it was also concerning that women retired on average with a balance of $122,848 in super compared to men who, according to the Association of Superannuation Funds Australia (ASFA) figures, retired with an average of $154,453. “When you look at the figures on how much Australians are retiring on, it shines...