By The Pensions Regulator The Pensions Regulator (TPR) is the UK regulator of workplace pension schemes. We make sure that employers put their staff into a pension scheme and pay money into it. We also make sure that workplace pension schemes are run properly so that people can save safely for their later years. Read book “here”
Managers of public sector pension funds are “largely convinced” that inflation as a major issue is fading away, but still wary of more economic turbulence, a new report from Ortec Finance has found. The study said that recent economic stress, including rising inflation and interest rates, is leading managers to do more scenario modeling and stress testing to help manage their plans. The Ortec Finance report was based on a survey of 50 U.S. public sector pension fund managers during...
State pensions could rise by 7% to £11,342 in 2024, paving the way for close to an 18% jump in two years, according to Bank of England inflation forecasts. Under the triple lock scheme, state pensions are required to increase annually at the same rate of whichever is highest out of the inflation rate in September, earnings between May and June or 2.5%. Predictions made by the Bank of England show inflation dropping from 8.7% to 7% in September, the month...
Older people selling assets or even begging on the street to survive: “We buy bread and cheese and feed the children while we do not eat.” “We get sick and we no longer go to the hospital due to high transportation costs …the only thing left is for us to die.” The global food, fuel and finance crisis is having a devastating impact on millions of older people across the world. It is leaving them struggling to afford food and...
According to the Association of Superannuation Funds of Australia (ASFA), the annual budget for a comfortable retirement is a record $70,482 for a couple aged 65 and $50,004 for a single. It says a “modest” retirement costs $45,808 for a couple and $31,785 for singles – which can be largely covered by the age pension. Retirees continue to face significant upward pressure on their household budgets with the cost increase reporting higher than Australia’s CPI inflation, which rose 7% for the...
Bigger chunks of our paychecks are going to pay the bills as we juggle higher rent or housing costs, larger monthly payments on cars, and ongoing high prices on food, clothing and airfares. Who wouldn't be tempted to dial back how much money you set aside from each paycheck toward retirement? Throw cash in a 401(k) plan? When you need to make a car payment of $700 a month or higher? Or your rent just went up by $250 a...
We first took evidence on the cost of living crisis in February 2022, when inflation was forecast to peak at 7.25% in April 2022. Since then, we have seen the invasion of Ukraine compound the difficult economic picture and inflationary pressure seen internationally and domestically after the COVID-19 pandemic, and inflation now looks set to top 11% in October—the highest in 40 years. However, the context for the cost of living crisis and its impact on the poorest in...
Public pension benefits will rise for the first time in three years in fiscal 2023, although at a slower pace than a major inflation rate, the Health, Labor and Welfare ministry said Friday. Benefit increases, set at 1.9% for pensioners aged 68 or over, will be limited because the ministry will activate what it calls the macroeconomic slide mechanism to curb benefit payments for the first time in three years. Japan revises the amounts of pension benefits every year to take...
Given today’s ongoing high inflation, many Americans worry they may not have put away enough money for retirement. They fear that sharp increases in food and energy prices and transportation and medical care costs could significantly affect their retirement savings. Yet there’s another important factor to consider: your life expectancy. A new report from the TIAA Institute and George Washington University reveals that more than half of American adults don’t know how long people generally tend to live in retirement, which...
By Russell J. Gerrard, Munir Hiabu, Jens Perch Nielsen & Peter Vodička When long-term savers plan for retirement they need to know their investment prospects in terms of real income (Merton, 2014). While inflation has traditionally been considered as a complication in financial analysis and financial practise, we obtain enhanced predictability and model fit if the real returns are targeted in conjunction with earnings-by-price minus inflation as predictor. For this latter case, we propose an investment strategy of updating the...
