November 2022
28Nov

Malaysia. Concerns over raising the retirement age

THE call for Malaysia to increase the retirement age, due to its ageing population and high number of citizens with insufficient savings, has grown louder as the Covid-19 pandemic has further eroded their savings. There are also suggestions to offer fixed term contracts, incentives for higher contributions towards savings as well as to increase the overall remuneration for employees and improve their financial literacy. Most Malaysians rely on their Employees Provident Fund (EPF) savings to sustain their expenses after retirement. The recent...

November 28, 2022
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28Nov

U.K. Pension savers ‘lost £1.7 billion on retirement transition

New research from HSBC Tomorrow Master Trust shows workplace pension scheme members are losing around £1.7 billion a year during their transition into and in retirement, due to savers choosing costly pathways to access their money. While some of this loss comes from scheme members withdrawing more than the 25% tax-free lump sum, exposing them to hefty tax penalties, many are potentially buying products that are not the optimal solution for their circumstances. The research was commissioned for a report Converting...

November 28, 2022
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24Nov

UK. Millennials risk losing nearly £6,600 by pausing pension contributions

People pausing their pension contributions in their 20s and 30s could stand to lose almost £6,600 by the time they reach retirement age, analysis from Money Minder has revealed. The research found that those in their 20s that paused pension payments for a year could have an additional £1,371, they risked losing up to £5,770 from their total pension fund when they reach state pension age, due to the accumulation of the investment returns contributing to the growth of the...

November 24, 2022
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22Nov

US. How many retire with one million dollars?

Saving $1 million (or more) for retirement is a great goal to have. Putting that much aside could make it easier to live your preferred lifestyle when you retire, without having to worry about running short of money. However, not a huge percentage of retirees end up having that much money. In fact, statistically, around 10% of retirees have $1 million or more in savings. The majority of retirees, however, have far less saved. If you’re looking to be...

November 22, 2022
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18Nov

Make pension schemes attractive: a call for Kenyan pension funds

Pension funds in Kenya are not attracting enough savers from both the formal and informal sector because of low penetration, experts say. A publication of the Zamara Kenya Pensions Watch 2022, shows coverage of the current pension in Kenya is at around 17.7 per cent of the total employed population. About 83.2 per cent of employed Kenyans in the informal sector have no access to any form of pension savings. Speaking at a Pension Trustee Seminar, organised by Zamara, former education CS...

November 18, 2022
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16Nov

Age for starting savings for pension drops in China

The average age for starting saving for a pension dropped sharply in China from 38 to 35, according to a survey on the prospect of China's elderly care released by Fidelity International and Ant Fortune on Tuesday, the Paper reported. Perceptions on and behaviors for retirement planning continue to improve when China's personal pension policy landed as a third pillar to support the country's pension system with the basic endowment insurance as the first pillar, and the enterprise annuity as...

November 16, 2022
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14Nov

South Africa. Unions and SOEs that fail to pay employee benefits are facing few to no consequences

Retirement, medical and other contributions deducted from employees’ salaries are not being paid to the relevant funds and schemes by some SOEs and unions. In a tough economic environment, unions and state-owned enterprises (SOEs) are starting to default on employee benefits such as retirement fund and medical scheme contributions. And there are apparently few to no consequences for this behaviour. Earlier this week, Pension Funds Adjudicator Muvhango Lukhaimane issued a ruling against the South African Transport and Allied Workers Union (Satawu)...

November 14, 2022
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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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