July 2024
25Jul

UK. Pension confidence surges following General Election

Brits’ confidence in their retirement prospects continues to rise, according to PensionBee’s latest Pension Confidence Index. The Pension Confidence Indicator score surged to +30 immediately following the General Election, up from +22 in March 2024. This was also significantly higher than -10 in December 2023 and -9 in September 2023. For those under 55, positive pension sentiment increased significantly, from 39% in March 2024 to 50% in July 2024. The top reasons for feeling positive were: ‘my employer contributions are relatively good’ (45%);...

July 25, 2024
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23Jul

UK government announces ‘landmark’ pensions review

The UK’s chancellor of the exchequer, Rachel Reeves, has announced a landmark pensions review as part of the new government’s mission to “boost growth and make every part of Britain better off”. Labour had promised to launch the pensions review as part of its manifesto prior to the UK’s general election and the industry has been awaiting this announcement since Labour’s landslide win earlier this month. Under plans unveiled by the new chancellor this weekend, billions of pounds of investment could be unlocked in...

July 23, 2024
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22Jul

Exiled pro-democracy Hong Kong activists blocked from accessing pensions

Two exiled pro-democracy Hong Kong activists have been blocked from accessing their pensions, depriving them of tens of thousands of US dollars of their savings and raising questions about the complicity of western financial institutions in the persecution of Chinese government critics. Assets, including pension savings, belonging to Ted Hui, a former pro-democracy legislator who is now based in Australia, were frozen shortly after he fled from Hong Kong in December 2020. The assets are held by HSBC, a British bank. HSBC briefly unfroze Hui’s...

July 22, 2024
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22Jul

Overcoming political short-termism in Latin America

Long before he became a leading theologian, Saint Augustine famously appealed to God: “Lord, grant me chastity and continence – but not yet.” It is an entreaty one can imagine governments in Latin America and the Caribbean (LAC) uttering. They know that their policymaking and planning must become more consistent and predictable. They recognize that their failure to implement lasting, credible reforms in areas ranging from taxation to pensions to education discourages investment and contributes to some of the world’s...

July 22, 2024
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19Jul

King Charles III’s speech highlights U.K. retirement plans under new Labour government

King Charles III unveiled a “surprise” focus on the U.K.’s retirement market in his first King’s Speech — and the first under the new Labour government — on July 17, with the aim of strengthening investment by the country’s plans. In the speech, which outlines the government’s legislative agenda for the upcoming parliamentary year and sets out rules it aims to implement, the king said that “stability will be the cornerstone of my government’s economic policy and every decision will...

July 19, 2024
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18Jul

Hong Kongers fleeing to Britain leave $5.1b trapped behind

Emigration has been top of mind for many residents after Hong Kong’s government in March passed Article 23, a domestic security law. For those moving to the UK, not being able to access their pension money has palpable financial impacts. “With Article 23, there will be more people trying to leave Hong Kong, more people trying to get early withdrawals to build their new lives, and more denials,” said Ms Megan Khoo, research and policy adviser at British-based activist group...

July 18, 2024
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17Jul

Malaysia’s pension fund strengthens sustainable investment with new stewardship policy

The Employees Provident Fund (EPF), Malaysia’s pension fund, has published the EPF Sustainable Investment Stewardship Policy, becoming the first institutional investor in Malaysia to publish a standalone stewardship policy for sustainable investment. EPF said in a statement on Wednesday that the policy outlines the processes and guidelines the EPF follows to promote good sustainability practices among its investee companies and external fund managers. It said the stewardship undertaking has strengthened the EPF’s commitment to help build a better retirement future for Malaysians...

July 17, 2024
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15Jul

US. The $25 Trillion System of Retirement Savings Needs Fixing

Few Americans today know much about Studebaker or Packard automobiles. Classic car aficionados recall their sleek, innovative designs, but the brands are also a reminder of another bygone era: the traditional defined benefit pension. Studebaker and Packard merged in 1954 and later went out of business. Their pension plans were terminated, leaving thousands of workers without their expected benefits. That, along with other pension plan failures, prompted efforts to make retirement savings safer, culminating in federal legislation that has shaped much...

July 15, 2024
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12Jul

US. DOL may review ‘derisking’ pension risk transfers, says congressional report

A recent Department of Labor report to Congress reaffirming current fiduciary standards for selecting annuity providers in defined benefit pension plans also includes notice that it may review the increasingly common, and controversial, practice of companies transferring pension risks to life insurers, commonly known as “derisking.” The report by the DOL’s Employee Benefits Security Administration (EBSA), which was mandated by 2022’s SECURE 2.0 Act, reviews its 1995 Interpretive Bulletin 95-1 that outlined the responsibilities of fiduciaries under the Employment Retirement Income Security...

July 12, 2024
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11Jul

UK. Wish list for new Pensions Minister

The new pensions minister, Emma Reynolds, must address the key challenges of adequacy, sustainability and intergenerational fairness facing the industry and the millions of savers across the UK as a priority, says Hymans Robertson. The leading pensions and financial services consultancy also says, it would like to see the new government deliver on the key pensions’ initiatives that are underway as the firm lays out its pensions policy wish list. Commenting on the need for rapid action from the new...

July 11, 2024
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