February 2024
12Feb

The Role of AI to Enhance Retirement Savings: The Gender Gap Challenge

By Anabel Martínez Colín AI is the biggest disruptor in the financial sector, where there are many AI solutions at work, and the role of AI over it is well documented. However, the deployment of AI in the pension segment is still at an exploratory stage, and its influence on the gender gap in pensions is still unclear. This research explores the relationship between AI readiness and the gender gap in pensions (GGP), which may also be statistically significant. In addition,...

February 12, 2024
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12Feb

UK. More than 11 million Britons have less than £1,000 in savings

More than 11 million working-age people in Britain don’t have basic “rainy day” savings of at least £1,000, according to a report that warns that the poorest households are struggling to build up financial resilience amid the cost of living crisis. The Resolution Foundation said people across Britain faced a “triple savings challenge” of insufficient savings, an inability to cope financially with major life events such as family breakdown, and inadequate retirement incomes. It said 11.2 million people lived in households...

February 12, 2024
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07Feb

Canada. Cost of Living Crunch Impacting Retirement Savings

A new poll commissioned by the Financial Services Regulatory Authority of Ontario (FSRA) found that 81 percent of people are now more concerned about paying for basic necessities like groceries, rent and their mortgage, than saving for retirement. The poll also found 44 percent said the high cost of living is hindering them from starting to save for retirement. Although individuals and families are living in a difficult economic environment, FSRA is urging consumers to prepare for the future and learn...

February 7, 2024
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02Feb

UK. One in four have stopped paying into their pensions

Almost two in five pension investors have stopped contributions or cut back on payments in the past five years, new research from wealth manager Investec Wealth & Investment has revealed. The nationwide study found a quarter have stopped paying into their pensions altogether, while another 12% have dramatically or slightly reduced monthly contributions. One of the primary reasons given was the cost-of-living crisis, followed by moving jobs or receiving a pay cut. Investec estimates the average amount of lost contributions adds up...

February 2, 2024
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02Feb

Climate Polarization and Green Investment

By Anders Anderson & David T. Robinson We build a nationally representative sample of retirement savers in Sweden to study how asymmetric updating of beliefs about climate change affects investment decisions. After the intense heat wave of 2018, respondents in regions dominated by a right-wing, anti-climate party grow less concerned about climate change, while respondents outside these regions grow more concerned. Those growing more concerned rebalance their retirement portfolios toward climate-friendly mutual funds; those growing less concerned rebalance out of...

February 2, 2024
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01Feb

Kenya. Counties owe pension schemes Sh41.2bn – Government Workers Union

Kenya County Government Workers Union has decried continued non-remittance of pension funds by devolved units, stating that the debts currently stand at Sh41.2 billion. Secretary General Roba Duba regretted that counties have been opting to pay “urgent” debts over remitting pension dues. Addressing a press conference in Nairobi, Duba said the union is going to petition the National Treasury to look at ways of addressing the matter urgently. “The issue of pension scheme management has not been given the necessary attention it...

February 1, 2024
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January 2024
30Jan

US. What’s the average 401(k) balance by age?

The amount of money you’ll need to retire comfortably depends on several factors, such as where you plan to live and how much you plan to spend. But experts say it’s important to save for the future now — especially because one of the main advantages of 401(k) workplace retirement plans is that your money benefits from compound returns, growing via the financial markets over time. “The sooner 401(k) participants start to save, the more realistic their retirement goals will...

January 30, 2024
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25Jan

Savers at risk from UK’s pension ‘pot for life’ plan, industry leaders warn

Critics say government proposal for single, career-long retirement funds could leave individuals worse off A proposed shake-up of the UK’s pension market to give millions of workers the right to choose a retirement “pot for life” risks leaving savers worse off, industry leaders and unions have warned. In last year’s Autumn Statement economic plan, the government issued a call for evidence on a “lifetime provider” model, which would allow consumers to stick with one pension pot throughout their career. Currently employers are...

January 25, 2024
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24Jan

US. IRS Announces Modest Changes To Retirement Plan Contribution Limits

In response to the current inflationary environment, the Internal Revenue Service announced a modest increase in the maximum contribution limits for 401(k)s and Individual Retirement Accounts for 2024. This year, 401(k) savers can contribute a maximum of $23,000, marking an increase of over 2% from the $22,500 limit set for 2023. The new contribution limit, effective from January 1, 2024, applies to 401(k) plans, along with 403(b) plans, most 457 plans, and the Thrift Savings Plan for federal employees. Despite being less...

January 24, 2024
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16Jan

Data Shows That Saving for Retirement Isn’t a Popular New Year’s Resolution. Here’s Why.

Now on the one hand, it's easy to see why a goal like paying off debt might trump funding a 401(k) or IRA. If you're staring at a credit card balance with a 20% interest rate attached to it, you're going to want to do your best to knock out that debt as soon as possible. Similarly, if you have no money (or little money) set aside for emergency expenses, then it's easy to see why you'd first work...

January 16, 2024
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