May 2020

Australia. Universal pension for all: Retirees call for tax and income reform

Every retiree would get at least a part pension under a plan being considered by seniors' groups amid concerns the coronavirus pandemic's effect on key income streams is leaving many older Australians cash poor and increasing the number living in poverty. Seniors organisations are pressing the Morrison government to look at a massive overhaul to the pension system that would also take into account possible changes to tax concessions, such as franking credits, as a way to pay for...

South Africa. Eskom must tackle the cost of its coal contracts

By Vuslat Bayoglu The lockdown is imposing additional financial strain on Eskom and necessitates urgent solutions to get the company on a sustainable path beyond Covid-19. It is estimated Eskom will lose between R2.5 billion and R3 billion in revenue per month due to the low electricity demand triggered by the national lockdown. This will compound existing problems: R450 billion debt, maintenance arrears, costly Medupi and Kusile faults, and money lost during state capture. The other perennial problem, perhaps...

How will the current financial climate affect UK pensioners?

By Rebekah Evans Pension saving often involves a lot of forward planning, with key decisions having to be made at particular times within a person’s life. However, due to the economic and financial disruption brought about by coronavirus, many savers have expressed uncertainty in the current pension market. Read also Transaction costs make up 37% of UK pension investment costs: CACEIS It is feared pension savings could potentially be at risk, and a significant number of savers are looking for ways...

Golden Aging: Prospects for Healthy, Active and Prosperous Aging in Europe and Central Asia

By Maurizio Bussolo, Johannes Koettl & Emily Sinnott The Europe and Central Asia region has among the oldest populations in the world. Europe, in particular, is approaching the end of a demographic transition toward population stabilization, and Central Asia, although still younger, is following quickly. Aging in Europe and Central Asia is different from that in Western Europe and East Asia in that populations are aging, while people are not necessarily living longer. The rise in the average age is largely attributable to...

The Shifting Ground of Pension Design: Reflections on Risks and Reporting

By Robert D. Baldwin Debates about the relative merits of defined-benefit (DB) and defined-contribution (DC) pension plans have been a prominent part of pension discourse over the past forty years. The intensity of the debate has ebbed and flowed over the years but has been more intense in recent years as there has been a shift from DB to DC plans in Canada. This shift has left the remaining members of DB plans feeling threatened and, for many, the...

Coronavirus and Older Adults: A Highly Vulnerable Group

By María Laura Oliveri Older adults are among the largest groups at risk for the coronavirus and they have the highest fatality rate in several countries. Learn about the resources and materials that we offer to guide caregiving and public policy on aging and long-term care in countries in the region. Nursing Homes: Dangerous Infection Hotspots Since the outbreak of the coronavirus epidemic, it has been confirmed that older adults are the most vulnerable age group. They are...

How People React to Pension Risk

By Nicolas Salamanca, Andries De Grip, Olaf Sleijpen We show that people exposed to greater pension risk are less likely to invest in risky assets. We exploit a reform that links people’s future pension benefits to their pension funds’ funding ratio — a measure of the fund’s financial health — making funding ratios a fund-specific measure of pension risk. The effect of pension risk is stronger for people who are better informed about their pensions, for retirees and pension-age...

US pension funds approach point of no return

The issues facing public pension funds in the US are widely known, and while it's not clear how exposed to the recent market correction funds were, analysis from Wirepoints of 2018 data shows some may have reached the point of no return. Looking at asset-to-payout ratios of 148 state and local pension funds with more than US$2 billion in assets, the worst-off funds are those that are already well known for their pension shortfalls. These are in Kentucky, Illinois,...

The Economic Commission for Latin America and the Caribbean proposes Universal Basic Income

The Economic Commission for Latin America and the Caribbean, a regional organism of the United Nations Secretariat has declared itself in favour of a new regime of welfare and social protection that includes the gradual, progressive and sustained establishment of universal basic income in the region of Latin America and the Caribbean. Read also World Bank Group: 100 Countries Get Support in Response to COVID-19 (Coronavirus) On May 12th, its executive secretary, Alicia Bárcena, presented the 3rd Special Report COVID-19:...

Working In Retirement: What You Need To Know Now

It’s common to assume that once you’re retired, your working days are over. But that’s not always the case. Whether it’s financially necessary or just a way to stay busy, a lot of people end up with a post-retirement career. If you think you’ll need or want to continue working to some degree after you retire, it’s important to start planning years ahead. Here are three different paths you can take for a post-retirement career—and important aspects of each...