Pension Payout Archives - Page 2 of 6 - Pension Policy International

15DecDecember 15, 2023

Annuities Are Back in Favour

"In an environment of high market volatility and high interest rates, life annuities are an option to consider again," says Spencer Look, director at the Morningstar Center of retirement and policy studies in Chicago. "Interest rates, he continues, are allowing annuity income levels not seen since the mid-2000s." The figures in Quebec confirm this, showing an increase of 17.7% between 2021 and 2022. Of the six main product categories listed in the 2022 Annual Report on Financial Institutions and Credit...

December 15, 2023

NewsIncome, Pension design, Pension Payout

01DecDecember 1, 2023

Subjective survival beliefs and the life-cycle model

By Seung Yeon Jeong, Iqbal Owadally, Steven Haberman & Douglas Wright Evidence from panel surveys of households, collected over several years and in different countries, shows that people’s perception about their remaining lifetime deviates from actuarial data. This has consequences for consumption, savings and investment over an individual’s financial life cycle, and in particular for retirement planning and the purchase of annuities. We use data from the U.S. Survey of Consumer Finances to estimate subjective survival probabilities at different ages....

December 1, 2023

Articles, Pension design2023, Investment, Longevity, Pension Payout

23NovNovember 23, 2023

The 4% Rule for Retirement Withdrawals Might Finally Be Safe to Use Again, Says Morningstar

There's been an ongoing debate about whether retirees should abandon the "4% rule" for withdrawals from retirement accounts, a retirement income rule of thumb for decades. The market volatility of recent years made that rule suspect for many new retirees, but a new study from Morningstar finds that the rule can still apply. What Is the 4% Rule? Created in 1994 by a financial planner named William Bengen, the 4% rule posits that retirees can make a well-structured retirement fund last 30 years...

November 23, 2023

NewsAdequacy, Decumulation, Pension Payout

03NovNovember 3, 2023

Aging, Healthcare System, and Interest Rates

By Reona Hagiwara Over the past few decades, the Japanese economy has experienced the widening gap between returns on liquid bonds and illiquid capital (i.e., the liquidity premium) due to a secular decline in the real interest rate and a slight increase in the capital return. This paper explores the role of the health or medical expenditure risk in the increase in the premium, using a general equilibrium overlapping generations model with heterogeneous agents that differ in health status and...

November 3, 2023

Aging, Articles2023, Aging, Healthcare, Japan, Pension Payout

27OctOctober 27, 2023

Time Consistency in Optimal Retirement Planning

By Frank Bosserhoff, An Chen & Manuel Rach We study time consistency in optimal consumption problems of annuities and tontines. We find the annuity problem to be time-consistent, hence delivering the same optimal consumption at each time. The tontine problem, however, is found to be time-inconsistent, opening the possibility for individuals to increase or decrease their overall expected utility by changing the ex ante fixed consumption profile. However, such an increase in the utility of the tontine cannot lead to...

October 27, 2023

Articles, Pension design2023, Pension Payout, Retirement Planning

09OctOctober 9, 2023

Why we often struggle to pivot from saving to spending

Here's the retirement quandary for many Americans. They spend years building good financial habits so, if all goes well, they have sufficient funds by the end of their working years. Then, when it’s time to transition, they often struggle in the shift from saving to spending their nest egg. The no-stress years suddenly become the all-stress years. "It's disappointing to get to your first couple of years of retirement, and just constantly be stressed out about your income generation strategy from...

October 9, 2023

News2023, Pension Payout, savings, US

05OctOctober 5, 2023

South Africa. Some pensioners are still queuing for hours for their grants

Pensioners still had to wait hours to collect their grants at some places in Cape Town, though on the whole the payments seemed to be going more smoothly. Last month, thousands of social grant beneficiaries did not receive their money on time due to a technical glitch with PostBank. When GroundUp arrived at noon on Tuesday, about 80 people were waiting at the Gatesville Post Office to receive their pension. Elizabeth Fredericks, 75, waited for five hours before receiving her grant. She arrived...

October 5, 2023

NewsPension Management, Pension Payout, South Africa

04OctOctober 4, 2023

US. SEC proposes changes for registered index-linked annuities

The SEC proposed rule amendments that would customize the registration form and disclosure requirements for registered index-linked annuities, also known as RILAs. The move comes after Congress passed a law in December directing the SEC to do so. "Given the complexity and growing popularity of RILAs, it is important that investors receive the information they need — in plain English — to make informed investment decisions," SEC Chair Gary Gensler said in a news release Sept. 29. "Implementing Congress' mandate, today's...

October 4, 2023

NewsPension Payout, Regulation, US

28SepSeptember 28, 2023

Kenya. 11,000 Retired Teachers Yet to Be Awarded Their Pension 27 Years Later

Treasury Cabinet Secretary Njuguna Ndung'u on Wednesday assured teachers and lawmakers that the government is entering homestretch when it comes to clearing dues owed to some 11,000 retired teachers who are yet to be paid their pension 27 years later. While appearing before MPs, the Treasury Cabinet Secretary told lawmakers that although the government released Ksh16 billion in May to settle unpaid teachers' pensions dating back to 1997, the funds were insufficient to pay all the claims. According to Prof. Ndung'u,...

September 28, 2023

NewsKenya, Pension Payout, Public Pensions

18SepSeptember 18, 2023

Nigeria: ‘Benue Owes Pensioners 120 Months Arrears’

Pensioners on the payroll of the Benue state government and those of the local governments have received four and three months payments respectively since the beginning of Governor Hyacinth Alia's administration. The payments covered the months of May to August 2023 for state pensioners while local government pensioners received payments from June to August 2023. The State Chairman of Nigeria Union of Pensioners, NUP, Michael Vember, who made this known in a chat, noted that the government's mode of payment had...

September 18, 2023

NewsNigeria, Pension Payout

December 2023

Annuities Are Back in Favour

Subjective survival beliefs and the life-cycle model

November 2023

The 4% Rule for Retirement Withdrawals Might Finally Be Safe to Use Again, Says Morningstar

Aging, Healthcare System, and Interest Rates

October 2023

Time Consistency in Optimal Retirement Planning

Why we often struggle to pivot from saving to spending

South Africa. Some pensioners are still queuing for hours for their grants

US. SEC proposes changes for registered index-linked annuities

September 2023

Kenya. 11,000 Retired Teachers Yet to Be Awarded Their Pension 27 Years Later

Nigeria: ‘Benue Owes Pensioners 120 Months Arrears’