The State Pension age will be rising from next year, the age is currently 66 for both men and women. It will gradually increase to 67 between 2026 and 2028 for those born after April 1960. The transition process is then expected to be completed for everyone by March 2028. The planned change to the official age of retirement has been in legislation since 2014, with a further rise from 67 to 68, which is set to be implemented between...
Retirement just got a little boost for many public sector retirees and their spouses. By the end of this month, more than 3 million Social Security recipients affected by the Social Security Fairness Act that President Biden signed into law in January will see a bump in their benefits. This law increases monthly Social Security benefits for certain types of workers, including some teachers, firefighters, and police officers in many states, federal employees covered by the Civil Service Retirement System, and...
South Korea's parliament on Thursday passed a bill to reform the country's $830 billion pension fund and delay the depletion of the state fund that has been on track to run out by the mid-2050s due to a rapidly ageing population. The bill's passage marks the first time parliament has agreed to a major shake-up in the state pension fund in 18 years and could delay depletion by 15 years. Under the legislative amendment, contributions and payouts will rise, the former...
Por Organización Internacional del Trabajo Cinco años después de la irrupción de la pandemia de COVID-19, el panorama laboral de América Latina y el Caribe en 2024 evidencia una estabilidad relativa en sus principales indicadores laborales. En línea con el crecimiento económico moderado, la tasa de ocupación aumentó ligeramente en 2024 respecto al año anterior. La oferta laboral, medida por la tasa de participación, el porcentaje de personas en edad de trabajar que están trabajando o buscando un empleo, se...
By Shujaat Khan, Bo Li & Yunhui Zhao We highlight the strong connection between developing fully-funded, individually-owned, collectively-managed, mandatory/incentivized (FICMI) pension schemes and the development of domestic stock markets. We do so by building a stylized model and complementing the analysis with cross-country empirical analysis and case studies. We also highlight the challenges of individual impatience, network externalities, and coordination failure in long-term equity investments, which are crucial for stock market development and technological innovation. We find that FICMI pension...
By Julián Díaz Saavedra One main reason for the unsustainability of future pensions in many European countries is a failure to adapt to very long-term demographic trends. Also, a reform to address financing issues can also be an occasion to improve pension design. Sometimes, however, such pension reforms are likely to be overturned when they lead to significant short-term losses in retirement income. We use an overlapping generations economy with incomplete insurance markets to show that, with an appropriate design,...
By Zorast Wadia The funded status of the 100 largest U.S. corporate defined benefit pension plans increased by $12 billion during January, as measured by the Milliman 100 Pension Funding Index (PFI). The funding surplus improved to $71 billion as a result of liability decreases and investment returns that surpassed expectations. Pension liabilities fell during the month due to a small increase in the benchmark corporate bond interest rates used to value those liabilities. As of January 31, the PFI...
By Björn Gustafsson, Peng Zhan & Hanrui Jia In urban China, gender gaps in employment and earnings have steadily increased since the 1990s. Such gender gaps are important because pension rights and amounts are based on labor force participation and wages. However, as this study demonstrates, despite the rise in gender differences in the urban labor market, the average gender pension gap decreased between 1988 and 2018. In this paper, we describe the evolution of the fragmented pension system in...
Por Daniel Mantilla García, Oscar Reinaldo Becerra Camargo, Manuel García Huitrón & Marc Hofstetter Gascón La reforma pensional aprobada el año pasado es de profundo calado y se encuentra en pleno proceso de reglamentación contrarreloj. Uno de los aspectos a reglamentar es la nueva estructura de “fondos generacionales”, así como los mecanismos que garantizarán que estos fondos cumplan el objetivo de optimizar la mesada pensional, como lo manda la ley que se aprobó. Explicamos en qué consisten estos fondos y...
By AON Successful organizations recognize the critical importance of their people and what is valuable to them. Investing in their potential, aspirations and resilience, and providing them with choice and flexibility that caters to their diverse needs is not just a necessity — it is the foundation for delivering long-term sustainable growth. This study is based on findings from Aon’s Employee Sentiment survey and insights from Aon’s team of human capital specialists. It equips senior business, human resources, and people leaders...
