September 2021

Study: As a population gets older, automation accelerates

You might think robots and other forms of workplace automation gain traction due to intrinsic advances in technology — that innovations naturally find their way into the economy. But a study co-authored by an MIT professor tells a different story: Robots are more widely adopted where populations become notably older, filling the gaps in an aging industrial work force. “Demographic change — aging — is one of the most important factors leading to the adoption of robotics and other automation...

Korea’s aging population to sap fiscal health: Fitch

The fast-paced aging of South Korea’s population is likely to undermine the fiscal health of Asia’s fourth-largest economy in the long run amid soaring debt, credit ratings agency Fitch Ratings said Monday. The aging population, coupled with a declining fertility rate of fewer than one child per woman, could leave Korea exposed to higher risks as rising government spending could become a less effective means of boosting nationwide productivity. Read also Australia. Most vulnerable excluded from Disability Support Pension Fitch urged Korea...

Millions of older people in the U.S. live on the economic edge—evictions will send them into homelessness

In late August, the Supreme Court ruled that evictions can resume, despite an effort by the Biden administration to temporarily ban them due to the pandemic. The impact of this ruling could have dire consequences for many older adults already on the financial brink. In fact, the number of homeless people who are 55 and older is rising at an alarming rate. I have seen this first hand as the CEO of Central Arizona Shelter Services (CASS), a 470-bed homeless...

August 2021

China: New State Pension to Boost Retirement Savings

The establishment of the new state pension company is waiting for regulatory approval from the CBIRC. China plans to set up a state pension company with registered capital of CNY 11.15 billion (USD 1.72 billion) to boost the retirement funds available for its rapidly ageing population. According to Reuters, 17 bank-affiliated wealth management units, insurers and state institutions will take stakes in the company, whose largest shareholders include the wealth management units of China’s big five banks, each with a stake...

China plans $1.72bn national pension company

China plans to set up a national pension company in Beijing with registered capital of 11.15 billion yuan ($1.72 billion) as the country's population rapidly ages. Seventeen financial institutions will take stakes in the company, including the wealth management units of China's big five banks, each with 1 billion yuan, or 8.97%, the Insurance Association of China said Thursday in a statement on its website. China's largest brokerage, Citic Securities; Taikang Life Insurance; and the investment arm of Beijing's State-owned...

Living in the COVID-19 Pandemic: The Health, Finances, and Retirement Prospects of Four Generations

By Transamerica Center for Retirement Studies Since 1998, Transamerica Center for Retirement Studies® (TCRS) has conducted a national survey of U.S. business employers and workers regarding their attitudes toward retirement. The overall goals for the study are to illuminate emerging trends, promote awareness, and help educate the public. It has grown to be one of the longest running and largest national surveys of its kind. • Limited Print and Electronic Rights. This document and trademark(s) contained herein are federally registered or...

Intergenerational inequality and pension systems

By CAndreas Charalambous and Omiros Pissarides he issue of income inequality lies at the heart of political discussions, both at EU and worldwide levels. Inequality manifests itself in different forms – inequality within a country, inequality between countries and intergenerational inequality. Today’s article deals with the issue of intergenerational inequality, aiming at safeguarding a satisfactory quality of life for future generations, with a particular emphasis on vulnerable citizens. The main policy instrument for this purpose is the adaptation of pension systems. Modern...

July 2021

China to allow tax deductions for care of small children to help boost births

China will allow tax deductions for expenses on children under three as part of a major relaxation in child-bearing policy to stem a dramatic decline in births in the world's most populous country, an official document showed on Tuesday. Beijing announced on May 31 that it would permit married couples to have up to three children, rather than just two. It scrapped a decades-old one-child policy in 2016 in favour of a two-child limit to try and stave off risks to...

June 2021

2021 pension adequacy report Current and future income adequacy in old age in the EU. Volume I

By The 2021 Pension Adequacy Report (PAR) is the fourth edition of the report, prepared every 3 years by the Social Protection Committee (SPC) and the European Commission. The report aims to present a comparative analysis of the degree to which pension systems in the EU Member States enable older people to retire with an adequate income today and in the future, reflecting pension reforms, as well as underlying changes and current or future challenges in our societies. Since 2012, the...

APAC pensions industry and recent trends in Japan

Pension assets across the largest pensions’ markets increased 11% in 2020, according to the Global Pensions Assets Study 2021 by Willis Towers Watson. Asia Pacific pension funds beat their peers in asset value growth in 2019, according to a report on the world’s top 300 pension funds by the Thinking Ahead Institute. Assets under management (AUM) of the top 20 pension funds grew 8.1% year-on-year in 2019, led by a 10.6% growth in the assets of Asia Pacific funds. Read...