July 2021

US. Public Retirement Benefits Not What They Used to Be

Defined benefit (DB) pension plans are a valuable benefit for employees—offering the option of guaranteed retirement income that is lacking in most defined contribution (DC) plans. Some private-sector employees have been envious of the pension benefits provided to public-sector employees. Over the years some outsiders have even argued that public pensions are too generous, perhaps without understanding that many public employees are required to put a significant percentage of their own pay into the plans. And there has been misunderstanding...

Perú. Adelanto de jubilación a los 50 años reduce posibilidad de tener mejores pensiones

La Asociación de AFP señaló hoy que el proyecto de ley que propone adelantar la edad de jubilación a los 50 años para hombres y mujeres en el Perú, reduce la posibilidad de tener mejores pensiones a quienes se acojan a esta modalidad. En ese sentido, indicó que este proyecto que modifica el Régimen de Jubilación Anticipada (REJA), se podría aprobar mañana en la sesión del Pleno del Congreso de la República. “Pese a las opiniones técnicas en contra de la...

Spain. Escrivá Advances A Small Adjustment In Pensions Of The Baby Boomers

Escrivá advances a “small adjustment” in the pensions of the ‘baby boomers’. According to the minister, they will be able to choose between adjusting or delaying retirement. The new equity mechanism will replace the sustainability factor. Escrivá indicates that the pension reform will come into force “at the end of the year”. Read also France. Macron Weighs Pension Reform Before Bastille Day The implementation of the new intergenerational equity mechanism will mean “a small adjustment” in the pension of the generation...

Germany. Pension increase rolls out in July

Just in time before the grand coalition government ends for this legislative period, one of its prestige projects is reaching citizens, or more precisely pensioners. According to estimates by the Federal Ministry of Labor, around 1.3 million retirees will receive a supplement to their pensions at taxpayer expense. In the face of opposition from the CDU/CSU, the SPD pushed through the basic pension last year, which is intended to recognize the lifetime achievements of people who have worked all...

US. Now Is The Time To Re-Think Retirement Plan Conventional Wisdom

Retirement plan design can make or break an employee’s ability to maintain their standard of living in retirement. Over the past several decades, many private sector companies implemented a complete overhaul in retirement plan design, shifting from defined benefit pensions to 401(k)-style defined contribution accounts. Originally designed to supplement rather than replace pensions, 401(k) plans have become the primary employer-sponsored plan for many U.S. workers. This transition meant sacrificing a number of important features of pension plans and economic efficiencies....

June 2021

Peruanos retiran 8,500 millones de dólares de fondos de pensiones en pandemia

La crisis económica causada por la pandemia ha llevado a que los trabajadores de Perú retiren más de 8,500 millones de dólares de sus fondos de pensiones, informó este jueves el regulador financiero peruano. Adicionalmente, otros 10,300 millones de dólares podrían ser retirados en un nuevo proceso en curso, según la Superintendencia de Banca, Seguros y AFP (fondos de pensiones). "Los retiros por pandemia suman más de 33,000 millones de soles (unos 8,500 millones de dólares)", lo que equivale al "20%...

US. Secure Act 2.0 Is Popular, but Not Perfect, Retirement Experts Say

The Secure Act 2.0 provides important benefits to help boost Americans’ retirement savings, but the huge retirement bill does have drawbacks, retirement experts told House lawmakers. Secure Act 2.0 — officially, the Securing a Strong Retirement Act — was part of a review of the nation’s retirement system during a hearing held Wednesday by the House Health, Employment, Labor and Pensions Subcommittee. On May 5, the House Ways and Means Committee passed the Secure Act 2.0, which raises the required minimum...

Women and Retirement in a Post Covid-19 World

By Margaret Claire Dale, Susan St John Women on average live longer than men and are more likely to live alone or be widowed. In spite of their greater needs, they are more likely to arrive at retirement without secure housing, to have saved less because of caring duties and lower wages, and thus to experience greatly restricted lifestyles in retirement. They are more likely to require expensive end of life care for longer than men on average and endure...

Kuwait’s $134 Billion Pension Fund Has Record Gain in Turnaround

Kuwait’s Public Institution for Social Security had its best ever annual performance, emerging as a new regional investment powerhouse despite political deadlock in the country. The $134 billion pension fund, which owns a quarter of U.S. private equity firm Stone Point Capital LLC, recorded 20.9% growth in assets in the year ended March 31, according to a statement on Wednesday. A new management team was brought into the fund in 2017 to transform the state-owned institution after its former head was...

US. Pandemic Magnifies Demand for Retirement Income

The COVID-19 pandemic has increased demand among retirees for retirement income solutions, according to BlackRock’s annual “DC Pulse” survey, which also found that nearly half of defined contribution (DC) plan participants’ finances were negatively impacted by the pandemic. “Workers saving for retirement today are concerned that they are going to outlive their savings, or that they may not enjoy the same kind of comfortable retirement previous generations did,” the report stated. “Plan participants, plan sponsors, and retirees alike all emerge...