November 2022
01Nov

US. Some workers halt 401(k) plan contributions to cope with inflation

More than half of American workers have cut or stopped contributing to their retirement savings plans to cope with soaring prices and 40-year-high inflation rates. The findings come from a third-quarter market perceptions study by Allianz Life Insurance of North America. The September survey of 1,004 workers found that 54% halted or reduced their 401k and other retirement savings between July and September. Perhaps more alarming, 43% admitted dipping into retirement nest eggs to cope with the higher cost of gas, utilities,...

November 1, 2022
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October 2022
31Oct

US. SECURE 2.0 could pass before new Congress

The upcoming midterm elections could change the trajectory on many congressional priorities, but strengthening retirement security has remained a bipartisan issue. Congressional leaders and their staffs are currently working to pass another retirement security package, referred to as SECURE 2.0, that could pass before a new Congress starts. There are three bipartisan bills that House and Senate members are discussing behind the scenes, attempting to reconcile any differences between the bills and put forth a package aimed at bolstering Americans' retirement...

October 31, 2022
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31Oct

UK. Increased pension engagement could trigger ‘unintended consequences’

Successfully engaging people with their pensions could result in “unintended consequences”, particularly given the current economic environment, Aon has said. Although Aon highlighted UK Pensions Awareness Week as an “opportunity” for the financial industry to connect with people and encourage active engagement with retirement savings, it acknowledged the difficulties presented by to the current cost-of-living issues. Among the issues highlighted by Aon was the possibility that individuals could be more inclined to cease their contributions or request early access to their...

October 31, 2022
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24Oct

US. IRA Limits Are Rising in 2023. Here’s What Retirement Savers Need to Know.

You have an even greater opportunity to build yourself a strong nest egg. Building a nest egg is an important thing to do if you want to retire in a comfortable manner. Sure, you can tell yourself you'll just fall back on Social Security -- but doing so might lead to a serious income shortfall down the line. Now when it comes to saving for retirement, you have options. If your employer sponsors a 401(k) plan, it could pay to contribute....

October 24, 2022
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21Oct

P&I Research Center. Pension Risk Transfer

By Valerie Ge Over the past 12 months through June, $57.4 billion in liabilities were involved in pension risk transfer deals. Pension buyout transactions reached $25.3 billion, or 44.1% of the total, followed by buy-ins of $23.2 billion, 40.4%, and longevity swaps of $7.5 billion, or 13.1% of the total. Buyout transactions increased 93.3% from $2.9 billion in the fi rst quarter but buy-in transactions declined to $2.4 billion from $7.3 billion. Source: @s3 prod pionline 491 views

October 21, 2022
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21Oct

Kenya. Pension-backed housing starts dimly amid calls for its overhaul

Access to affordable housing is a challenge to many public and private sector employees who retire without a home, despite having worked and saved towards a pension. One of the initiatives by the government to increase access to housing was by amending the Retirement Benefits Act (RBA) to allow pension funds to be used as collateral for the purchase of a home. The move was billed as a silver bullet in enabling civil servants and workers to own homes. And two years...

October 21, 2022
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19Oct

A leisurely retirement is further out of reach for most South Africans

Retirement. What does the word mean to you? For the enviable few who have built up a decent nest egg, retirement represents a life of leisure as compensation for years worked. But that is not the reality for most South Africans. When 10X Investments published its first South African Retirement Reality Report in 2018, it highlighted how poorly prepared working South Africans were for retirement. Subsequent reports, including the latest, released recently, have shown that the outlook is worsening by...

October 19, 2022
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17Oct

South African savings grew by 15.4% in 2021, report shows

Allianz unveiled the 13th edition of its Global Wealth Report, which puts the asset and debt situation of households in almost 60 countries under the microscope. In retrospect, 2021 might have been the last year of the old “new normal”, with bullish stock markets powered by monetary policy. Households benefitted handsomely: For the third year in a row, global financial assets grew by double-digits in 2021, reaching €233tn (+10.4%). In these last three years, private wealth increased by a staggering €60tn. This...

October 17, 2022
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11Oct

US. Congress is still considering changes to the retirement system, including catch-up contributions

There’s still a decent chance that changes to the U.S. retirement system will be enacted before the end of the year. Despite there being just a few months left before the next Congress convenes Jan. 3 — the midterm elections will be Nov. 8 — the push to improve Americans’ ability to save for retirement is supported by both Republicans and Democrats. The proposals are collectively called “Secure 2.0” — which is a nod to the 2019 Secure Act, whose provisions...

October 11, 2022
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07Oct

US. Study Finds Millennials Are Less Likely to be Secure in Their Retirement

New research from the Pension Research Council shows job rates, marriage and home ownership down for early millennials. Millennials may have a harder time maintaining their standard of living due to a variety of factors, according to research from the Pension Research Council at the Wharton School of Business at the University of Pennsylvania. At a glance, there is reason for both pessimism and optimism. Among early millennials, male labor force participation is down from past generations, with 89% of men...

October 7, 2022
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