February 2024
21Feb

4 new bills passed by parliament – with big changes for pensions in South Africa

The National Assembly has passed four Bills, with one having a significant impact on South Africa’s pension system. NA has passed the Revenue Laws Amendment Bill, the Plant Health (Phytosanitary) Bill, the Deeds Registries Amendment Bill, and the Municipal Fiscal Powers and Functions Amendment Bill. The Revenue Laws Amendment Bill, the Plant Health (Phytosanitary) Bill and the Deeds Registries Amendment Bill will head to the National Council of Provinces for concurrence. On the other hand, the Municipal Fiscal Powers and Functions Amendment...

February 21, 2024
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06Feb

Mexico’s president wants to guarantee people pensions equal to their full salaries when they retire

Mexico’s president said Monday he will propose guaranteeing people pensions equal to their full salaries at the time they retire, something done by no other country, not even those much richer than Mexico. It was among a raft of 20 constitutional reforms that President Andrés Manuel López Obrador has almost no hope of getting passed in the eight months he has left in office, but which could be part of a bid to attract voters in the June 2 presidential...

February 6, 2024
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02Feb

The Purpose of Pensions

By Tom Shields & Jesse Griffiths  The pensions the system needs major reform: it is not delivering decent, secure retirement incomes for all, it excludes far too many, and it is not playing a big enough role in delivering a just, green transition, or supporting an inclusive, sustainable and productive economy. This paper reviews all proposals for change, and recommends five key sets of reforms that could ensure that the pensions system works for people, the economy, and the environment. Get...

February 2, 2024
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02Feb

Redistributive effects of pension reforms: who are the winners and losers?

By Miguel Sánchez-Romero, Philip Schuster & Alexia Prskawetz As the heterogeneity in life expectancy by socioeconomic status increases, many pension systems imply a wealth transfer from short- to long-lived individuals. Various pension reforms aim to reduce inequalities that are caused by ex-ante differences in life expectancy. However, these pension reforms may induce redistribution effects. We introduce a dynamic general equilibrium-overlapping generations model with heterogeneous individuals that differ in their education, labor supply, lifetime income, and life expectancy. Within this framework we...

February 2, 2024
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January 2024
25Jan

Chile Lower House Approves Base Text of President Gabriel Boric’s Pension Reform

Chile’s lower house of Congress approved the base text of President Gabriel Boric’s pension reform, while rejecting a key clause, damping government celebrations over one of its few legislative victories. Lawmakers backed the legislation on Wednesday by 84 votes to 64, but went on to reject a proposal over the destination of funds from a new employer pay-in as they subsequently voted on the bill article-by-article. The vote still advances one of Boric’s marquee proposals and gives temporary respite to a...

January 25, 2024
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23Jan

OECD tells Italy to curtail State pensions for high earners

The OECD on Monday called on Italy to reform its pension system, making it less generous for high earners. “Reducing the generosity of pensions for higher-income households could limit the [forecast] increase in [pension] spending, while maintaining adequate public services and social protection,” read the OECD’s economic survey of Italy. The Paris-based body also stressed the need to phase out a variety of schemes that make it possible to start claiming a State pension before the retirement age, as has already...

January 23, 2024
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19Jan

UK. Pensions changes on the Horizon for 2024

In 2023 a number of announcements were made about changes to pensions law that are expected to take place during 2024. In addition to proposals set out in the Chancellor's Autumn Statement (summarised here), some other significant developments we expect are: Automatic enrolment: The vast majority of UK employers have to automatically enrol certain employees and other workers into an appropriate pension scheme. The Government has proposed that the qualifying age threshold for auto-enrolment will be reduced from 22 to...

January 19, 2024
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12Jan

Between Individual Risk and State Responsibility: 20 Years of Swedish Premium Pensions

By Anika Seemann  In 2000, the Swedish pension reform of 1998 led to the introduction of a capital-funded pension component with individual investment accounts in the first pillar of the pension system, known as the premium pension. This article takes the 20th anniversary of the Swedish premium pension as an opportunity for a fundamental evaluation. It shows which guiding principles the premium pension system was founded on when it was introduced, which problems have arisen since its introduction, how the...

January 12, 2024
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03Jan

Huge risks for pensions in South Africa

South Africa will have a new two-pot retirement system by September this year, but there are several risks facing members and the industry. As the name suggests, the two-pot retirement system will have two pots – savings and retirement savings. The savings pot will hold a maximum of one-third of all retirement savings and will be accessible prior to retirement. The retirement pot will hold a minimum of two-thirds of all retirement savings and will only be accessible at retirement. A third vested...

January 3, 2024
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02Jan

South Korean president set to reform pensions, labor and education

South Korean President Yoon Suk-yeol has shown a steadfast commitment to implementing sweeping reforms in labor, education, and pensions, as he acknowledged in his recent New Year address. The President’s pledge mirrors his unwavering resolve to address the long-standing rigidity of the nation’s job market, enhance the quality of education, and ensure the sustainability of the pension system. This commitment marks these policy areas as likely focal points for his administration’s significant legislative and practical efforts. Addressing Labor Concerns President Yoon’s...

January 2, 2024
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