November 2022
14Nov

UK. Pension savers face ‘double’ tax hit as inflation soars

The government’s decision to freeze the lifetime allowance could yield up to £2bn for the Treasury, double the £1bn it previously projected due to a surge in inflation this year. The lifetime allowance, the amount a pension holder can benefit from without having to pay extra tax, was frozen at £1,073,100 in the 2021 Budget by former chancellor and current prime minister, Rishi Sunak. But according to pension consultants LCP, the freeze did not take into account inflation proofing and over...

November 14, 2022
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October 2022
28Oct

UK. State pensions triple lock to stay, hints Nadhim Zahawi

Guarantee of at least a 2.5pc rise could be kept to help ‘uniquely vulnerable’, even though No 10 refused to commit to the pledge The state pension triple lock will be kept in place, Nadhim Zahawi has suggested, after Number 10 refused to commit to the pledge. Mr Zahawi, the new chairman of the Conservative Party, said pensioners were "uniquely vulnerable" amid the cost of living crisis and ahead of next month's Autumn Statement, which is expected to result in wide-ranging...

October 28, 2022
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28Oct

Egypt: Increase of minimum wage in public service to address rising cost of living

Egypt has increased the minimum wage in the public sector from 2,000 Egyptian pound ($101.3) to 3,000 in a move to help workers surf the increase in the cost of living, reports say. Prime Minister Mostafa Madbouly who announced the decision said the government will pay an exceptional bonus of EGP 300 for employees in the public sector and its affiliate companies, as well as pensions. Read also Nigeria. How data analytics, artificial intelligence will help PFAs enhance customer service The hike...

October 28, 2022
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28Oct

Long-term care equality index 2021

By SAGE Try as we might, we may never fully process and adequately convey what we, people working in long-term care communities and hospitals, have experienced during these past fifteen months. But just like the virus which we cannot see but has nonetheless turned our world upside down, even though we cannot see what has happened to us and others from within, we carry our experiences, and their effects on us, in our heart, mind, body, and spirit. In the...

October 28, 2022
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28Oct

Optimal Savings and Portfolio Choice with Risky Labor Income and Reference-Dependent Preferences 

By Servaas van Bilsen, Roger J. A. Laeven & Theo Nijman This paper explores the joint impact of reference-dependent preferences and non- tradable risky labor income on optimal savings and portfolio decisions. We develop a non-trivial solution procedure to determine the optimal policies. Our results reveal that the impact of permanent labor income shocks on both the optimal savings rate and the optimal portfolio share is more pronounced under reference- dependent preferences than under CRRA preferences. In particular, we find...

October 28, 2022
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26Oct

In the U.S., Income and Wealth are Concentrated at the Top. Where Does This Leave Older Americans?

Disparities in income and wealth among older Americans have widened in recent decades. Higher income and wealth are both associated with better prospects for living a long life. So where does this leave older Americans? Today’s WatchBlog post looks at our new report on these trends with older Americans and retirement, as well as what we can see happening in three other countries with large economies—Canada, Germany, and the United Kingdom. How does the U.S. compare? In some ways, we are similar to...

October 26, 2022
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25Oct

Number of pensioners in poverty on the rise in Germany

The aim of the pension system in Germany is to ensure that anyone who has spent a good portion of their life working can draw upon decent pension benefits when they retire. But according to a new report, for a rising number of people, the old-age pension is not enough to live on. 628.000 pensioners in Germany drawing basic subsistence benefits A growing number of pensioners in Germany are being forced to rely on basic subsistence benefits, as well as...

October 25, 2022
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21Oct

Individual Investors’ Housing Income and Interest Rates Fluctuations

By Antonio Gargano & Marco Giacoletti Little is known about the participation of small individual landlords in the rental market, and about rental income earned by households. Using unique tax filings data from Australia, we show that 20% of middle and retirement age median-income individuals are landlords. This fraction has risen over the last 20 years, increasing by 80% for the retirement age group. We provide evidence linking this change to cuts in interest rates, which have led older individuals...

October 21, 2022
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19Oct

UK. Pension triple lock at risk as Truss warns of ‘difficult decisions’

Number 10 has refused to commit to the state pension triple lock, after Liz Truss promised to keep the measure just weeks ago. Truss’ spokesperson refused four times to say Truss would uphold the triple lock, which would ensure state pension payments stay in line with inflation next year. New chancellor Jeremy Hunt warned yesterday that public spending is not going to rise by “as much as people hoped” and he today told cabinet ministers to “find efficiencies” in their departments. Hunt...

October 19, 2022
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14Oct

US. Social Security Announces Big Bump in 2023 COLA

The Social Security Administration (SSA) announced Oct. 13 that the monthly Social Security and Supplemental Security Income (SSI) benefits will increase 8.7% in 2023. The change will affect approximately 70 million Americans and translates to an increase in Social Security benefits of more than $140 per month starting in January 2023. The 8.7% cost-of-living adjustment (COLA) will begin with benefits payable to more than 65 million Social Security beneficiaries in January 2023. Increased payments to more than 7...

October 14, 2022
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