November 2022
03Nov

How technology can support pensions for the underserved

New technologies, including central bank digital currencies, can help to better distribute and protect wealth PROVIDING pension support for workers in the informal sector has always been a challenge. At a recent Green Shoots session held at Prudential Singapore’s office, panellists discussed how the use of technology and digital tokens can help facilitate the distribution of micro pensions, and what challenges remain. Micro pensions refer to small sums of money saved by self-employed individuals, that are then invested to yield...

November 3, 2022
News, ,
Read more...

October 2022
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
Articles, Investing, Savings, , ,
Read more...
19Oct

A leisurely retirement is further out of reach for most South Africans

Retirement. What does the word mean to you? For the enviable few who have built up a decent nest egg, retirement represents a life of leisure as compensation for years worked. But that is not the reality for most South Africans. When 10X Investments published its first South African Retirement Reality Report in 2018, it highlighted how poorly prepared working South Africans were for retirement. Subsequent reports, including the latest, released recently, have shown that the outlook is worsening by...

October 19, 2022
News, ,
Read more...
18Oct

Experts debate length severity recession

The likelihood of an economic recession in the U.S. is a near certainty as inflation and interest rates climb, according to industry experts who spoke to Pensions & Investments. But there's a divergence of views when it comes to the potential length and severity of the downturn. In the worst-case scenario — a lengthy recession — institutional investors will have few places to seek respite from the gloom. Still, managers agreed the best place for institutional investors to park their money...

October 18, 2022
News,
Read more...
14Oct

Orange Report 2020 Annual Report of the Swedish Pension System

By Pensions Myndigheten The Orange Report 2020 describes the financial position of the national incomebased pension system at the end of 2020, its evolution in 2020, and three scenarios for the future. To put the national income-based system in context, it is related below to, inter alia, information on occupational and private pensions. However, data for these insurance systems are so far only available up to and including 2019, thus the amounts below refer to 2019. Private pension refers only...

October 14, 2022
Books, Books, System Characterization, , ,
Read more...
14Oct

Mercer CFA Institute Global Pension Index 2022

By Mercer & CFA Institute Mercer and the CFA Institute released its 14th annual Mercer CFA Institute Global Pension Index (MCGPI). Iceland’s retirement income system has once again topped the list, with The Netherlands and Denmark retaining second and third places respectively in the rankings. As more employers have stepped away from defined benefit (DB) plans, the study also investigates the challenges and opportunities with the global shift towards defined contribution (DC) plans where individuals bear increased financial responsibility. The MCGPI...

October 14, 2022
Adequacy, Books, Books, Sustainability, System Characterization, , , ,
Read more...
06Oct

UK. Green pensions increasingly important to workers

Workers are favouring companies that offer green pension plans, according to research from Scottish Widows. Almost a quarter (25%) of employees named green pensions as one of the top benefits they would expect from a new employer. Nearly three quarters (72%) of employees said it was important for their company to invest their savings sustainably, demonstrating a commitment to taking environmental and social issues seriously. Despite the demand from workers, the report showed 34% of employers don't currently offer a sustainable pension...

October 6, 2022
News, ,
Read more...
05Oct

US. 5 Ways Inflation is Changing Retirement Planning

GOBankingRates survey finds 3 in 4 Americans say inflation is impacting how they save and plan for retirement. Here’s what they’re doing A recent GOBankingRates survey of nearly 1,000 Americans found that nearly three-quarters (73.5%) say inflation is affecting their retirement plans in some way, from how they invest to when they plan to retire. Per the survey, here are five significant ways inflation is changing how people are saving and planning for retirement. Saving more The most common response to inflation when...

October 5, 2022
News, ,
Read more...

September 2022
30Sep

Behavioral Influences on Retirement Planning: Non-Financial Reasoning Affecting Retirement Outcomes

By Janet Aschkenasy The supposed rational logic of the market is no longer understood to exclusively motivate economic decision making. Behavioral economics is now a vital part of university curriculums. Both lay persons and professional retirement investors at times manage money on irrational behavioral factors. Janet Aschkenasy, a veteran business writer, discusses the insights of leading behavioral economics scholars and draws upon current research to describe "decision making" practices among individuals and retirement managers. Often higher investment returns are forfeited to a behavioral...

September 30, 2022
Books, Books, Investing, Savings, ,
Read more...
28Sep

How To Retire During A Bear Market

Imagine retiring in this market. A 60-year-old who owns a balanced fund—60% allocated to stocks, 40% to bonds—has seen the value of their investment drop by 18% so far this year. Soaring prices only makes matters worse. Not only does our 60-year-old have less wealth, but also their savings don’t buy what they used to. In fact, financial advisors say their clients have been more preoccupied with gas and food prices than the terrible stock market. “Inflation is the biggest issue...

September 28, 2022
News,
Read more...