August 2022
17Aug

UK. Transfer volumes could hit £600bn as insurers post strong results

A host of insurers have revealed their first-half 2022 results that show a booming trade in risk transfers, which, by some projections, could hit £600bn over the next decade — though there are fears about a capacity crunch in the sector. Read more Older people face losing €1,532 in spending power by end of year Of those that have released their results so far, Aviva saw bulk annuity sales increase by 15 per cent, rising to £1.9bn, which compares with £1.6bn...

August 17, 2022
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July 2022
28Jul

Trust and Retirement Preparedness: Evidence from Singapore

By Benedict S. Koh, Olivia S. Mitchell & Joelle H. Fong Trust is an essential component of the financial system, and distrust can undermine saving and economic growth. Accordingly, prior research has shown that survey responses to a question about ‘trust in people’ are associated with household willingness to invest in the stock market. Nevertheless, little is known about how trust shapes economic behaviors predictive of retirement preparedness. Our study draws on the Singapore Life Panel (SLP®), a high-frequency internet...

July 28, 2022
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26Jul

US. Milliman: Pension risk transfer premiums increase slightly in June

Estimated average pension risk transfer premiums rose slightly in June, but the average rate among the most competitive bidding processes fell by 30 basis points, a study by Milliman showed. The estimated buyout cost as a percentage of accounting liabilities, or accumulated benefit obligations, was 103% as of June 30, up from 102.5% as of May 1, according to the Milliman Pension Buyout index. However, the average of the most competitive annuity purchase rates fell by 30 basis points to 98.3%...

July 26, 2022
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22Jul

Defined Benefit Risk Phase 2: Expert Interviews

By David G. Pitts Over the course of 2020 and 2021, the research team interviewed the following subjects: • Chief Financial Officer • Chief Risk Officer • Multiemployer Plan FSA • Public Plan FSA • Investment Consultant / FSA • Outsourced Chief Investment Officer / FSA • Canadian FSA / CERA Each interview lasted approximately one hour. All interviewees are senior practitioners in the defined benefit space. The interview notes include a faithful representation of the ideas discussed, with some changes in minor details to ensure the anonymity of the respondent. Executive...

July 22, 2022
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13Jul

UK pensions insurance deals to rise more than 25% in 2022-adviser

Britain is likely to see around 35 billion pounds ($41.62 billion) in pensions buy-in and buy-out deals in 2022, up more than 25% from 2021, consultants Hymans Robertson said on Wednesday. Such deals involve offloading the risk of company defined benefit, or final salary, pension schemes to an insurer. Pensions' funding positions have improved following government and central bank stimulus due to the COVID-19 pandemic, making such deals cheaper for some companies, industry specialists say. The deals remove balance sheet risk for...

July 13, 2022
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13Jul

U.S. Seniors Worried About Inflation in Retirement

Four out of five Americans age 50+ say they are worried about inflation in retirement, according to a new survey from F&G. This feeling is even more acute among pre-retirees (84%) vs. 76% of retirees. The survey also revealed 71% of Americans are worried about a recession and 66% are worried about rising healthcare costs. The survey also found that Americans age 50+ are considering various approaches to mitigate their retirement worries likely due to the current economic climate. Sixty-two percent...

July 13, 2022
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08Jul

US. Study Finds Disconnect Between Actual and Perceived Retirement Risks

Retirees face many financial risks, such as outliving their money, investment losses and unexpected health expenses, but a new study finds that they may be overestimating some risks while underestimating others. In How Well Do Retirees Assess the Risks They Face in Retirement? by Wenliang Hou, a quantitative analyst at Fidelity Investments and former research economist at the Center for Retirement Research at Boston College, the study develops a lifecycle model of a typical retired household facing five categories of...

July 8, 2022
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June 2022
17Jun

US. Stock market’s fall has wiped out $3 trillion in retirement savings this year

The U.S. stock market rout that has put U.S. equities in a bear market isn't just reducing the net worth of billionaires like Elon Musk and Jeff Bezos. It's also taking a toll on Americans' retirement savings, wiping out trillions of dollars in value. The selloff has erased nearly $3 trillion from U.S. retirement accounts, according to Alicia Munnell, director of the Center for Retirement Research at Boston College. By her calculations, 401(k) plan participants have lost about $1.4 trillion...

June 17, 2022
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16Jun

How to improve long-term planning for pension funds

The most difficult task for pension fund managers is to properly calibrate risk and return to make sure that pensioners earn a steady income after retirement. Today, this tradeoff is harder than ever. Since 1980, the average person’s life expectancy at retirement has increased by about four years, or one year per decade. This has resulted in greater liabilities for pension funds. In addition, bond yields have decreased to rock-bottom levels, which means that the dollars we save no...

June 16, 2022
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15Jun

US. Recession, stagflation risks top concerns for managers

As the U.S. stock market officially entered a bear market, investor gloom continues to grow as global profit expectations and fears of stagflation reach the highest point since 2008, according to the results of Bank of America's June Global Fund Manager Survey. Of the 300 surveyed fund managers, which oversee a total of $834 billion in assets, expectations of global growth were at a net -73% in June, down from a net -72% in May and reaching a new lowest...

June 15, 2022
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